DAO Organizational Bylaws

Introduction #

It is anticipated that the AmpleSense Decentralized Autonomous Organization (DAO) will play an important role in helping to shape, expand, and accelerate the global elastic finance subsector.

Because of this it vital for the organization to operate in a highly transparent and ethical fashion.

The bylaws below provide the community with critical information about how the DAO operates, key leadership roles, expectations, and DAO Founder performance requirements.

These bylaws were ratified by DAO leadership on October 14, 2020.

DAO Objectives and Responsibilities #

The AmpleSense DAO is an Aragon-powered, Open Enterprise entity that shall have the following primary objectives and responsibilities:

• Engaging in activities that help expand the ecosystem of products, services and initiatives around Ample and other select elastic finance assets
• Improving understanding and awareness of Ample (and other elastic cryptocurrencies) by funding and engaging in education, marketing, communications, and related activities

The DAO shall not:

• Play an integral role in the governance for the Ampleforth protocol by, for example:
  • Enabling the KiloAmple (kMPL) governance token to be utilized for voting on Ampleforth protocol operation
  • Serving as a means of harnessing collective community action to influence Ampleforth governance (or governance of other elastic finance protocols not developed by the DAO)

However, the DAO may provide input on issues related to Ampleforth protocol governance via channels established by the Ampleforth Foundation.

Transparency and Ethics Statement #

DAO Founders and Members shall (individually and collectively) operate according to the highest ethical standards, including:

• Communicating respectfully with members of the community, and refraining from using insulting, defamatory, violent, sexist and racist language
• Not engaging in speculation or sharing rumors about unconfirmed activities, as communicating about these subjects as DAO Founders can result in market manipulation or be harmful to others
• Adhering to actions agreed to internally or in public, and refraining from behaving or communicating in ways that are in contrast or at odds with public or private collective decision-making

The DAO shall operate in a transparent fashion by:

• Producing and publishing regular reports on the DAO’s, spending, communications, initiatives and other activities
• Engaging in dialogue and conversation about AmpleSense Progress Proposals, which will provide the community with an understanding of how Founders/Members view these Proposals and may vote
• Clearly and consistently communicating about the DAO’s proposal review process, rationale for approving/vetoing AmpleSense Progress Proposals, and other issues related to decision-making
• Providing the community with unrestricted access to information about DAO financial transactions (via the Finance Dapp) and Voting (via the Voting Dapp / DOT Voting Dapp)
• Being responsive to and respectful of community questions and queries about DAO voting, decision-making, activities and financial transactions
• Utilizing the existing DAO idea/proposal review process (Idea Incubator and AmpleSense Progress Proposals) to explain, provide the rationale for and receive community review and approval of major DAO initiatives (such as those on the DAO’s current roadmap)

Following the Will of the Community #

In general, DAO leadership (Founders and Members) is obligated to ratify proposals and initiatives that have gone through the Idea Incubator and AmpleSense Progress Proposal process and have been approved by the community via voting.

Any decision to not ratify a community vote for approval shall be guided by the following considerations:

• The proposal or initiative will harm the DAO, or the Ampleforth/elastic finance ecosystem
• The vote has been subject to manipulation by adversarial forces or others
• Technical or project due diligence reveals that project teams cannot fulfill their duties or the initiative is not possible to deliver safely or in a timely manner
• Other issues that disqualify a project or initiative for funding (such as failure to reveal issues of material concern to the project, past team evidence of misconduct, etc.)

In order to ensure that projects and initiatives can be properly reviewed and monitored, DAO leadership will determine the AmpleSense Progress Proposal community voting schedule.

Official DAO Communications #

Official DAO communications channels are outlets the DAO leadership uses to collectively communicate about the official business of the DAO. The official channels for collective communication shall be:

• The DAO Medium blog
• The DAO’s Twitter Account
• Pinned posts to the DAO’s Telegram channel
• Posts to the DAO’s official announcements channel (forthcoming)
• The DAO’s community voting portal
• Posts to the DAO’s Community Hub blog in the “Official AmpleSense Announcements” category

Official communications shall be solely focused on the following topics:

• DAO initiatives and voting activity
• DAO-supported projects, products, services and other solutions
• Ampleforth initiatives or select information about other elastic finance protocols

Official communications shall not focus on:

• Rumors or unconfirmed information about Ampleforth or other crypto assets (such as potential exchange listings or projects)
• Refer to or promote high-risk projects, initiatives or protocols

In all cases, official communications shall not be made without being reviewed and approved by all three DAO Founders.

Non-Disclosure of Confidential and Material Information #

DAO leadership (Founders and Members) shall not disclose confidential or material nonpublic information about projects, initiatives or activities funded by the DAO, its partners or others associated with or working with the DAO. Note that, depending on severity, revealing confidential or material non-public information may result in a vote for removal from the DAO’s leadership team.

DAO Founder Roles and Performance Expectations #

The DAO Founding and leadership team consists of three individuals with primary responsibility in a range of areas including (but not limited to):

• The DAO’s day-to-day operations
• Managing DAO communications and community engagement (either individually or collectively)
• Managing the DAO’s finances, budgeting and transactions
• Providing input on ecosystem development idea and proposal generation
• Conducting due diligence on and ratifying projects and initiatives approved by the community via the voting process
• Delivering oversight, management and reporting of funded projects to ensure they are high-quality and delivered and implemented as expected
• Developing reports on the DAO’s finances, activities and accomplishments for community review and comment

DAO Founders are not precluded from engaging in activities outside the DAO. However, they shall be expected to engage in DAO-related business daily or at minimum several times a week. Key Founder DAO management responsibilities include (but are not limited to):

• Attending internal governance meetings (weekly or bi-weekly)
• Helping to actively guide the idea submission and AmpleSense Progress Proposal process
• Managing DAO projects and initiatives in their respective areas of responsibility (marketing, communications, project development/management and other areas)
• Being available and responsive to internal and external requests
• Conducting DAO business to the best of their ability and in a transparent, ethical, respectful and high-quality fashion
• Communicating regularly with community members about DAO activities either publicly or privately
• Ensuring each Founder is individually engaged and aiding in DAO operation and management at activity levels that are not substantially below other Founders

DAO Treasury Management #

The DAO Treasury shall be managed by DAO Founders (and Members, if seated) according to the following guidelines:

• Budgets: The DAO shall set up budgets that will:
  • Align with projects and initiatives approved by the community and ratified by the DAO leadership (Founders and Members)
  • Be related to internal DAO needs, such as funding operations, and special projects
• Budget Approval: Budgets shall have specific thresholds and must be approved by DAO Founders and Members (using the ASDAO Voting Token) prior to implementation.
• Budget Expenditures: Any expenditure above $5,000 USD shall be disbursed from pre-approved budgets and allocated for spending via DOT Voting. (With the exception of Treasury dividend payments to DAO Founders and Members, which shall be subject to a separate voting and community notification process.)
  
  DOTs are non-transferable tokens provided automatically to all DAO Founders and Members. These tokens shall be used to approve allocations of funds from specific predetermined and approved budgets.
  
  • Note: There shall be (within any calendar month):
    
    • No more than one (1) Treasury expenditure between $3,000 to $5,000 approved by the DAO
    • No more than two (2) Treasury expenditures between $1,500 and $3,000 approved by the DAO
    • No more than three (3) Treasury expenditures between $0 and $1,500 approved by the DAO
  • There shall be no submission of sub-$5,000 transactions for approval by any DAO leadership member in ways that seek to avoid or circumvent these transaction limits
  • As a reminder, any transaction above $5,000 shall be subject to, budgeting, allocation and voting process outlined above.
• Funding is Subject to Meeting Specific Project Milestones and Performance Requirements: Funded teams and individuals failing to meet stated performance and delivery requirements will not receive the remainder of funds, if they have not yet been allocated and approved by the DAO.

DAO Member Prerequisites, Seating and Expectations #

DAO Members are no more than 30 individuals who shall be:

• Community Spirit DAO Members (2) with demonstrated ability to provide value to the community and Ampleforth Ecosystem
• Individuals who have contributed to the ASDAO Treasury (which is used to support the DAO’s mission and operations) and have received voting tokens from the DAO

Each class of DAO Member shall be seated as follows:

• Community Spirit: After a public campaign and community voting process; Community Spirit Members shall have terms of one year and must be approved by DAO Founders and Members for membership, and agree to be bound by the DAO’s bylaws
• Individual DAO Members: After completing the following steps:
  • Completing a brief application requesting consideration for membership (on this page)
  • Agreeing to a confidentiality statement
  • Completing an application form
  • Reviewing DAO Member responsibilities and contribution thresholds
  • Agreeing to make a non-refundable contribution to the DAO’s Treasury (in exchange for ASDAO Voting Tokens)
  • Agreeing to be bound by the DAO’s bylaws
  • Having their membership approved by DAO Founders and Members

DAO Founder Accountability and Removal #

Being a Founder of the AmpleSense DAO is a significant responsibility, and places Founders in a position of influence and leadership within the Ampleforth and elastic finance ecosystem.

As a result all Founders are expected to adhere to the all DAO bylaws — especially those regarding confidential information, communication, transparency, ethics and performance expectations.

If any DAO Founder engages in behavior or activities that contravene these bylaws, they will be subject to the following accountability (and if necessary removal) process from the DAO:

• Notification: The Founder will be notified via internal communications of behavior and/or activities that are not aligned with the DAO’s bylaws
• Cure: The Founder will be provided with an opportunity remedy the relevant issue(s)

If the Founder engages in behavior that consistently violates the DAO’s bylaws, they will be subject to removal proceedings, which will involve:

• Communication: Internal communication documenting specific bylaws violations and discussion (they will be provided with an additional opportunity remedy the issue(s))
• Removal Vote: If necessary, the other DAO Founders (and Members, if seated) will hold a vote to remove the Founder from the DAO’s leadership (a removal vote requires a 60% majority vote to pass)
  • Note: If any Founder is removed from the DAO leadership prior to the completion of their vesting schedule, they shall forfeit the remainder of kMPL tokens not yet delivered to them via the Sablier Dapp; their ASDAO Voting tokens will also be revoked (burned)
• Notification: The DAO shall notify the community of the removal vote (with relevant details withheld to protect the DAO Founder’s privacy)

DAO Member Accountability and Removal #

Being a Member of the AmpleSense DAO is both a privilege and responsibility. As a result all Members are expected to adhere to all relevant DAO bylaws — especially those regarding confidential information, communication, transparency and ethics.

DAO Members who significantly and consistently contravene DAO bylaws shall be:

• Notified of the breech and provided with the opportunity to cure it
• If breeches continue, a vote to remove the DAO Member from the organization will be held among Founders and Members (a removal vote requires a 60% majority vote to pass)
  • Members who are removed from the DAO shall have their ASDAO Voting tokens revoked (burned) and lose all other rights and privileges of DAO Membership

Dispute Resolution #

If necessary, significant disputes that do not rise to the level of removal from the DAO, but have a significant impact on DAO operations, shall be adjudicated via the dispute resolution process provided by Aragon Courts.

Bylaws Ratification and Modifications #

These bylaws were ratified by DAO leadership on October 14, 2020.

Modifications

Minor modifications to the bylaws shall not be subject to a ratification vote. Minor modifications include, but are not limited to:

• Minor modifications to language and clarifications such revising sentences for spelling, grammar and syntax
• Adding new official communications channels or links to governance documentation and other materials
• Clarifying which information is considered confidential and material
• Providing additional information about community voting and AmpleSense Progress Proposals

Significant additions or modifications shall require a new approval vote by DAO Founders (and Members, if seated). Significant modifications include, but are not limited to:

• Adding sections or major clauses to the bylaws
• Deleting sections from the bylaws
• Making changes or clarifications to the bylaws that substantially change their meaning or intent

In the event that major changes are required, modifications shall be implemented via the following process:

• Any Founder or Member can submit suggested changes by publishing a forum post in the AmpleSense DAO Founders and Members Lounge, (this is a hidden Founders / Members-only group) with the title: “Recommended Bylaws Modifications – [Month]”
• Founders and Members shall discuss the proposed changes
• A vote will be scheduled in the DAO voting Dapp regarding the proposed changes (the text of the change will be included in the vote description)
• After a successful vote the bylaws will be modified
• If this vote fails to pass, the original DAO bylaws will remain in full force and effect.