The Bitcredit DAO

Why a DAO?

Bitcredit is built to operate without centralised control. It is designed as a perpetual, independent, decentralised autonomous organisation (DAO), self-governed by its members. For long-term sustainability, a quarterly reward system incentivises member contributions, such as code, content, education, and introductions. 

What is the Bitcredit DAO?

The Bitcredit DAO rewards contributors without a need for permissioned fiat bank accounts with its guarantee asset (e-IOU), a BRC-20 token on Bitcoin mainchain, Contributions secure the DAO's long-term existence. 

The DAO is self-governed and thus needs no permission from any nation state government. 

1. 1. Contributor rewards

As a reward for approved contributions, contributors share the newly issued e-IOUs, every quarter. There is no central entity that issues e-IOUs, existing Bitcredit holders vote on each reward request and its release from reserve, on an open voting platform for BRC-20 tokens, Votico → 

1. 2. Strategy proposals

The Bitcredit DAO has no CEO or leadership team. Its members, the e-IOU holders, decide its strategic matters. Before voting, strategic proposals are deliberated on a structured open discussion platform, Kialo →

Strategic un-governance

Bitcredit operates on 'un-governance'. The project uses methods and systems for finding high quality consensus for strategic decisions in an efficient manner but subsequent adherence is voluntary. Nobody can be forced to act on it, anyway, because Bitcredit is open source software, its code is in the public domain. Anybody can fork it, just like Bitcoin. 

Participation is open, starting from the project's public GitHub. Anyone can submit a proposal for strategy, technical, and community contributions. Voting enhances quality and participation by utilising division of labour, by a method called statistically-representative voting.  Appropriately powered random samples of token holders vote privately by publicly known token ownership, The largest voter in the set is limited to a 20% vote share. 

e-IOU rewards follow a similarly structured process, as follows:

1. Entry: Anyone can submit a proposal via the project's public Kanban on GitHub → 

2. Triage:  If three e-IOU holders second the proposal in the comments, it can go to a vote. 

3. Setup: One of the seconders or a token holder must set up the proposal on the Bitcredit section on Votico →

4. Sampling: Votico automatically selects a random sample of e-IOU holders for the vote.

5. Voting: Anybody can debate on Votico before the sampled voters cast their vote. Voting is blinded and immutable. 

6. Release: The e-IOU rewards for approved proposals are released with a multi-signature from DAO reserve. 

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1. If everybody must vote, only large holders would participate. Therefore, the DAO ask a sample which gives a confidence level of 90% for a 15% interval.  
2. Votes are weighted by a voter's token holdings and capped at 20% per participant. 
3. Due to the confidence interval, a 65% supermajority is required for approval.
4. The 8-of-15 signers rotate quarterly, and are randomly selected. The supporters of the proposal of the quarterly signer reward qualify for random selection.