Decentralization plan
At launch, Oceanpoint governance relies on a strong social contract between the founding team and stakeholders. Over time, the Oceanpoint protocol will mature to become entirely community-driven. This means that Oceanpoint stakeholders will eventually be in total control of the future of the product and ecosystem. From Day 1, the long-term objective is to develop a robust decentralized community of which the founding team only accounts for a minority of the decision-making authority.
Across all phases of decentralization, we have a firm commitment to engaging with BST holders and community members on all major changes and updates.
Overview
BST, when staked, i.e. sBST is the protocol's governance token, which gives token-holders the ability to participate in on-chain votes on new pools, development strategies, policies and other important decisions. This section addresses how members of the Oceanpoint community might use their tokens in this manner.
Governance Phases & Rationale
Oceanpoint Governance is derived from the Compound governance module, a tried-and-true framework that has become familiar to the DeFi community. From Day 1, the founding team will begin relinquishing control over Oceanpoint operations through phases of progressive decentralization, promptly communicating with the community, and striving for the highest standards of transparency.
Transitioning to Community Governance
Many DeFi projects have experienced early 'growing pains' when initiating community governance. We hope to mitigate this friction with an iterative transition to community governance.
Until Oceanpoint v0.3 is established, ownership functionalities will be retained by the team in order to easily upgrade the protocol, introduce new pools, allocate BST rewards, and so on.
After Oceanpoint v0.3, governance responsibilities will be transferred to a multi-sig wallet controlled by a Governance Board, where seats will be split: 33,33% founding team (2 seats), 33,33% mentors and/or advisors (2 seats), 33,33% community representatives (2 seats).
Over the course of one year after the Governance Board begins its mandate, the board will work towards increasing the amount of seats by on-boarding elected members of the community, increasing the community's voting power.
The last stage will introduce a fully functional on-chain governance module with delegation features, so that 100% of the control will be in the hands of the community. Upon successful deployment of the governance module, the dissolution of the Governance Board shall commence.
Votes can only be cast by sBST token-holders. The vote passage/approval requirements are as follows:
Action | Threshold |
Bring a proposal to vote | Submitters must have the delegation of at least 1% of the outstanding sBST supply. |
Voting - Reach Quorum | 5% of the outstanding sBST supply must vote ‘Yes’ on the proposal. |
Voting - Vote Passes | A minimum of 50%+1 of votes cast with a minimum of 5% of sBST supply as ‘YES’ votes. |
Voting & Participation
Participants can engage with the Oceanpoint community by proposing, developing and assisting Oceanpoint Improvement Proposals [OIPs], casting votes on OIPs, and sharing their opinion in our community chats. (See "The Voting Process.")
Treasury Management
15,000,000 BST is dedicated as DAO reserves for marketing, community engagement and liquidity provisioning. Most of this BST will most likely stay un-minted until the Governance Board is established.
Beyond that, there are many, smaller expenditures required to facilitate further growth of Oceanpoint and modest allowances of 2,000-4,000 BST may be utilized if required per the discretion of the team and, later when introduced, the Governance Board. These might include audit payments, bug bounties, freelance work, community engagement, contests and campaigns, content bounties, and so on.
Once the Governance Board is established, one or two "satellite wallets" will be introduced for ease of operations. These types of siloed 2-of-n multisig wallets will enable a more efficient ecosystem that doesn't require a vote on every single spend and maintains security of the overall treasury by fragmenting allowances to different groups and categories.
Wallet signers will comprise of team members, Oceanpoint community members, and external reputable faces in DeFi. Ultimately, more and more weight will shift away from the team and towards the community.
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