The Constitution of PeopleDAO
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April 28th, 2022

Author(s): The PeopleDAO Legal Team

Editor(s): The PeopleDAO Writer Team

Last updated: 9th May 2022


THE CONSTITUTION OF PEOPLEDAO

Preamble

The purpose of PeopleDAO (“PeopleDAO” or “the DAO”) is to (1) advance web3 and benefit social good, (2) incubate and support subDAOs to effectuate the prime mandate, and (3) build an ecosystem around the $PEOPLE token and accrue value to its holders. We have adopted the $PEOPLE token as our governance token. Voting members of the DAO are $PEOPLE holders who use their tokens to vote on major proposals on the PeopleDAO Snapshot.

Most terms are defined in-line throughout this document, but more information can be found in the glossary at the end.

Article I. Establishment of the PeopleDAO General Treasury

The PeopleDAO general treasury (“Treasury”) stewards PeopleDAO’s funds using Gnosis Safe multi-signature wallet(s) (“Multisig”). As the name implies, the Multisig is designed to safeguard our common assets by implementing a multi-signer/holder system, therefore reducing the risk of treasury integrity issues. DAO members shall elect 9 (NINE) Multisig Signers through a democratic process. Multisig Signers should meet the following requirements:

  1. A Multisig Signer shall be able to comprehend and use the basic functions in the Gnosis Safe Multisig to sign and approve transactions;
  2. A Multisig Signer shall be able to dedicate a reasonable amount of time to fulfill the duties and responsibilities of the role. These mainly include: participating in necessary meetings and verifying and signing transactions based on democratic resolutions of People DAO;
  3. A Multisig Signer shall exercise due diligence to safeguard his/her own key through any reasonable means. Although the Multisig is designed to protect assets even if one or some of the signers are compromised, each signer still needs to act responsibly.

The term of Multisig signers is 1 Year, with elections and transitions taking place in January of each calendar year. Each final Multisig Signer will get 1,000 $PEOPLE per month to compensate for their efforts.

Section 1. Election Method and Timeline

The Election starts with self-nomination in a Multisig-Election Channel on the PeopleDAO Discord server. Community members then narrow the candidate field using an approval voting system, whereby emoji responses constitute support for a candidate. Up to 30 shortlisted candidates based on Discord voting will be put to a final vote on Snapshot. Using approval voting, the TOP 9 Candidates are elected Multisig Signers for the following year.

Each year the election process should follow a similar schedule:

  • Jan 1 to Jan 8: Self-nomination period (deadline UTC 23:59, Jan 8);
  • Jan 9 to Jan 15: Discord voting period (deadline UTC 23:59, Jan 15);
  • Jan 16: Statistics on shortlisted candidates compiled and bots eradicated;
  • Jan 17 to Jan 22: Snapshot voting period (deadline UTC 23:59, Jan 22);
  • Jan 22: 9 Multisig Signers elected;
  • Jan 22 to Jan 31: Multisig transition period.

(The first Multisig election successfully concluded on Jan 22, 2022)

Article II. Establishment of Teams in PeopleDAO

Certain decision making powers will be delegated to a series of smaller organizational bodies called PeopleDAO Team(s) (hereinafter notated as “Team” or “Teams”). The Team in PeopleDAO is defined as an organizational unit that is both subject-specific and autonomous, with independent governing powers confined by pre-selected subject area(s). The Teams in PeopleDAO shall be responsible for their own operation and maintenance, as well as the decision-making within their respective subject areas. The majority of the Teams’ coordination will take place in subject-dedicated channels within the PeopleDAO Discord server.

Preferably, a Team should consist of one to two leaders and a management council of up to five, along with unlimited numbers of active members. PeopleDAO members can formalize a Team by initiating a DAO-wide vote. A formalized Team must fulfill their responsibilities and adhere to the general rules of the PeopleDAO. In return they receive privileges including but not limited to flexible funding issued by the Treasury, and the ability to vote in People Improvement Proposals (“PIPs”) using any $PEOPLE owned by the Team wallet. PIPs are proposals that address significant matters or issues within PeopleDAO.

Members may freely organize Informal Teams within the Discord, provided such new teams do not overlap with the existing Teams, unless the existing Team gives express permission to the newcomer. The Treasury budget will not directly allocate funds to the Informal Teams. A formal Team may sponsor an Informal Team and share funding via that relationship.

Section 1. Appointing Team Leaders and Provisional Period

Team leaders are the primary representatives for the various People Teams. They are charged with managerial and administrative responsibilities including but not limited to: leading coordination, managing Team finances, as well as tracking project schedules.

The first three months after the effective date of this constitutional article is a provisional period and all Team leaders during this period will be appointed on a voluntary basis. Should more than two members seek co-leadership positions within a Team then they must present their arguments to the community, who will then vote in the Discord, facilitated by a Discord admin. Admins must set a quorum appropriate relative to the number of active Discord users at that time, and contestants are required to earn a simple majority of support to win. At such a three month mark, the PeopleDAO shall promulgate a formal rule of appointing Team roles and setting term limits as necessary, such as involving an election process.

During this provisional period, should the community have other major grievances about Team management, members may call for a vote of impeachment, conducted in the same fashion as mentioned above within the Discord server.

Section 2. Consensus Mechanisms and Autonomy of Teams

Teams will have their own consensus mechanisms, as determined by their respective Team leads and advised by their own management council(s). This may consist of, but is not limited to, polling, informal discussion, debate, etc. Unless extenuating circumstances exist, the PeopleDAO governing body shall not interfere with the internal affairs such as project development and dispute resolutions of various Teams.

Section 3. Delegation/Granting of Powers

The powers within the PeopleDAO are ultimately held by the $PEOPLE holders, though the obligations and privileges prescribed in this document and future amendments, are distributed among the PeopleDAO governance body, Teams, and individual members.

The general governance and administrative power of PeopleDAO, excluding those that are exclusively confined to the operation and management within any Team, are vested in the PeopleDAO main governance body.

Autonomous governance and administrative power is vested in the People Teams. This includes the operation and management of internal affairs of Teams, in addition to project creation and product issuance.

The general treasury power of PeopleDAO, including general budget and spending, is vested in the PeopleDAO main governance body, subject to all necessary DAO-wide public notice and approval procedures.

The Team-specific treasury power of PeopleDAO, which means the utilization and disposition of all funds and assets made available either by Treasury or any other means, is vested in the Teams. These funds will be applied and managed through Team Gnosis Safe wallets whose keys will be held by Team leaders and management councils. In the absence of a Multisig, Team funds will be custodied within the main Treasury and the general Multisig will execute transactions on behalf of the Team.

Provisional powers, such as a temporary power to conduct certain activities within a given time period that will impact the economic interest of members, may be granted to the Teams in the PeopleDAO from time to time, subject to a DAO-wide provisional power granting vote. The quorum should be set to 100 million $PEOPLE at the minimum.

The undelegated, ungranted powers are reserved for Teams and individual PeopleDAO members.

Section 4. Amendment and Revision to Powers

The powers delegated/granted by any Articles of this Constitution and its sections may be amended and annexed in the future as necessary. Amendments, revisions and annexation can occur when significant public conversation deems it necessary.

Any member of the DAO may propose an amendment. Prior to formal submission, a draft amendment should be posted for public comment for no less than two weeks, during which time the proposer may make modifications in response to community comments. Upon formal submission, the amendment will be evaluated by Team leaders in a timely fashion, taking into account both public comment and Team management council input. If approved by a simple majority of Team leaders, the amendment will be put to a DAO-wide vote. A super majority of 67% with a quorum of at least 150 million $PEOPLE is required to approve amendments, which become effective immediately unless stated otherwise in the amendment itself.

Section 5. PeopleDAO Teams Budget Appropriation

Following the establishment of the PeopleDAO Treasury, a portion of the budget will be utilized and granted to Teams for flexible spending to fulfill their mandates. Treasury will review and approve quarterly Team budgets on a need-basis, subject to necessary procedures. As a general rule, the funds will be appropriated proportionally, in response to DAO priorities, developmental stage, and opportunities or challenges within the marketplace.

The budgetary process will be outlined at a future date, with prior public notice that allows for comments. The budgetary process will be formalized upon a DAO-wide voting subject to all the applicable procedures. Teams will be required to report on how funds were spent and to what degree expended funds benefited the PeopleDAO.

Section 6. The Different Teams of People DAO and Their Mandates

Preface. Team Autonomy and Expansion of Mandates

As set forth in the preceding sections, each Team in PeopleDAO may set up its own consensus mechanisms and administrative rules. At the creation of this Constitution, 5 Teams are assembled to fulfill the initial functionalities of the DAO, each Team has the authority to ratify its rules of internal operation and administration. Upon creation of a new Team, founding members shall promulgate essential rules and expand this Section as necessary. Teams are advised to review their own rules from time to time in order to ensure maximum practicality and efficiency.

Section 6a. Legal Team

The Legal Team is charged with working on activities related to procedural issues in governance. These may include finalizing and posting Snapshots, facilitating constitutional amendments, and running elections. Additionally, the Legal Team is responsible for organizing processes pertaining to impeachments, dispute resolution, and code of conduct review. In principle, the Team shall not act as a tribunal other than acting as arbiter or mediator in a minor dispute resolution. In case of a major conflict, the Team should recruit a disinterested third party or organize an impartial committee.

DAOs and web3 represent a frontier for society, and the permissionless nature sometimes clashes with laws made by nation states. The Legal Team will also be responsible for researching and providing recommendations related to legal matters.

Finally, clarity in a partnership facilitates effective coordination and business. The Legal Team will also draft contracts between subDAO and metaDAO and between PeopleDAO and DAOs we are collaborating with.

Section 6b. Development Team

Coding is the bedrock of web3. The Development Team is in charge of writing well-tested code and building high-quality software. They are responsible for creating and maintaining iterations of the PeopleDAO website. Additionally, this Team contributes talents to different applications which may include DeFI or GameFi. Apart from coding, they are responsible for sending regular updates to the managers of respective development projects. They work closely with other Teams in the community such as assisting the Design Team with collecting wallet addresses for POAP distribution.

Section 6c. Design Team

The Design Team will be responsible for stewarding the development, production, and distribution of POAPs, which provide proof of attendance in PeopleDAO events and activities. These POAPs incentivize participation in the PeopleDAO and have the potential to unlock further benefits. The Design Team will lead similar activities for other types of NFTs, which may also involve sales or auctions. Selling NFTs raises revenue for the PeopleDAO and doubles as outreach into web3 communities. Throughout its duties the Team may build partnerships or set up design contests, among other activities.

Branding tells the story and values of an organization. The Design Team is vested with shaping the PeopleDAO branding, a process which will also include assessments of community preferences.

Lastly, as part of its operations, the Design Team will recognize and support talented artists and designers within the PeopleDAO community.

Section 6d. Marketing Team

The Marketing Team fuels social media content released by official PeopleDAO channels. Additionally, it runs social marketing campaigns, raising awareness about PeopleDAO news and  $PEOPLE token in the web3 community. It should run at least one campaign per budgeting cycle. Giveaways and contests can be integrated into these campaigns or implemented in one-offs.

Lastly, the Marketing Team shall produce regular memes including but not limited to the ConstitutionDAO story, and the ongoing villany of Ken Griffin and other figures of similar characters and traits deemed meme-worthy by the community.

Section 6e. Writers Team

The Writers Team is assembled to address the increasing demand for insightful and entertaining writing. While video has overtaken a large part of our internet experience these days, written communication remains the best media form for delivering complex and nuanced ideas. Furthermore, because of the precision of language, writing continues to be the means through which organizations release policies and formal messages to their communities.

The Writers Team is charged with both producing written content for the DAO, but also stewarding the DAO’s editorial platform on Mirror.xyz. As such, they coordinate with other Teams to copy, edit and publish documents such as white papers, People Improvement Proposals, and more.

The medium of literature never goes out-of-date. PeopleDAO fully intends to carry this ancient power to web3.

Article III. Code of Conduct

Harassment, bullying, hate speech, racism, sexism, sexual gratuitousness, ageism, homophobia, transphobia, and any other form of discrimination are not tolerated within PeopleDAO. Bad vibes (i.e: being rude, consistent negativity) are discouraged. Members are encouraged to promote an exciting, welcoming space.

Discord Admin and Moderators hold authority to issue warnings and instate bans. Admin and Moderators will issue a verbal warning and up to a temporary ban to any members who violate the rules. The member may be permanently banned from the Discord if they commit multiple offenses.

Leaders within the DAO, including Multisig Signers, Team Leaders, and Discord admin, are subject to a more substantial process if they commit violations. First, a member reports the violation to the Legal Team. The Team notifies the offender and they are given a chance to respond. At least three separate members must report before action is put to a vote. Action may involve stripping of titles and authors, or even temporary or permanent bans.

The Legal Team holds a purview over the processes related to code of conduct and will lead any response should unforeseen circumstances arise for which the Constitution is not prepared.

Article IV. SubDAOs

PeopleDAO is a metaDAO, which means the main body has a relationship with derivative entities, akin to a corporation and its subsidiaries. PeopleDAO continues to innovate on the metaDAO model, a new phenomenon in web3.

Section 1. Incubation

PeopleDAO may identify the need to create a subDAO based on a particular purpose, social cause, or gap within the market. During this incubation phase, subDAOs inherit talent, resources, and community engagement from the metaDAO. PeopleDAO may donate funds to the new effort, termed a “cold start,” which is 200,000 $PEOPLE tokens by default. In the future, PeopleDAO intends to create a platform for token fundraising, to assist in launching subDAOs.

During the incubation phase, the PeopleDAO Multisig Signers may temporarily stand in as multsig holders for the subDAO, until the subDAO community has sufficient governance infrastructure in place to conduct voting; i.e.,has issued a governance token.

Section 2. Governance and Financial Relationship

Set by the precedence of PandaDAO, upon launch of their token, the subDAO will issue PeopleDAO 5% of the supply of the governance token and 5% of the funds raised (capped with 50 ETH, by default). Giving a share of the governance token to PeopleDAO will grant the metaDAO (People DAO)  a stake in subDAO governance. The arrangement also aligns the incentives of the two organizations. When the subDAO succeeds and its governance token price increases, so does the portion of that token sitting in the PeopleDAO treasury.

The People DAO has a certain amount of governance stakes in the subDAO by default, as illustrated in the preceding paragraph. However, unless there are extraordinary circumstances that will severely impact the metaDAO’s core operation, People DAO shall not abuse its stakes and controls in a subDAO, nor shall it exert undue influence on the daily operations and administration of a subDAO.

Section 3. SubDAO Ecosystem

PeopleDAO encourages the establishment of an ecosystem around the $PEOPLE token, Relationships between subDAOs may include but are not limited to creating new use cases for the $PEOPLE token, $PEOPLE token buybacks and burns, partnering with each other on initiatives, providing cross-promotion, whitelisting, and discounted services.


Glossary

DAO – Stands for Decentralized Autonomous Organization. A new form of social organization characterized by horizontal power structure, coordinated in online spaces like Discord, and enabled by blockchain technology.

MetaDAO – A new model for a DAO analogous to a corporation and its subsidiaries. The model is still being developed, but the relationship between a MetaDAO and its “SubDAOs” can vary with regards to governance, resources flow, etc.

SubDAO – Analogous to a subsidiary, but may act with significant independence from the MetaDAO. A stronger relationship than a mere business partnership. The organizational model is still being developed.

Treasury – The collection of assets owned by the DAO. Spent to fund projects, reward contributors, etc. Among DAOs, the treasury usually exists on the blockchain.

Multisig – A type of treasury wallet which requires a pre-defined number of signatures in order to execute transactions of funds. Multiple Multisig Signers, also known as Governors, consist of a pre-selected group of individuals who have authority to sign the Multisig wallet.

PIPs – Stands for PeopleDAO Improvement Proposal. A key process of PeopleDAO governance. Proposals are major decisions concerning the DAO, submitted by members, and voted on via Snapshot.

Admin – Members of PeopleDAO who hold the highest levels of permission within the Discord.

Moderators – Members of PeopleDAO who hold middle-levels of permission within the Discord, and generally assist with coordination.

DeFi – Stands for decentralized finance; new forms of finance empowered by blockchain technology. It often is decentralized and allows users access to services typically reserved for banks, and with considerably less friction than traditional financial systems.

GameFi – The merging of video games with decentralized finance. It may incorporate in-game markets, economies, and financial products. A common model is “play-to-earn,” where players accrue assets and ownership in the game the more they play.

AMA – Stands for “Ask Me Anything,” refers to an event format where individuals in the audience send questions to a featured speaker. Popularized on the social media website Reddit.


Snapshot Vote Text:

A constitution dictates the governance and structure of an organization and is the foundation for all further policies and procedures. A constitution provides stability, order, and direction. Ratifying a constitution is likely the most important milestone for a DAO.

The Legal Team produced this first draft of the PeopleDAO Constitution and solicited public comment from the community. The beginning of the Constitution addresses the creation of a treasury, while the second half concerns the creation of subunits called Teams.

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