Submitted by: Andre Serrano
Date: May 10, 2022
This proposal explores the creation of a CityCoins DAO to improve the quality of life for a city’s residents and their system of governance. In less than a year, CityCoins have unlocked a new funding mechanism for municipal governments; however, the community currently has little influence over how their city’s treasury is allocated.
What if you could vote directly on how your city’s budget is spent and receive instant, on-chain verification that those funds were allocated for their intended purpose?
The goal of a CityCoins DAO is to empower city residents and give stakeholders a voice in how their city is managed. The CityCoins DAO will seek to establish direct democracy through a token model, whereby token holders can vote directly on issues pertaining to their city. By holding CityCoins, citizens are transformed into stakeholders who have the power to upgrade their city in meaningful, measurable ways. This proposal aims to create a system that is more transparent, more efficient and more accessible than the status quo, which if implemented, should lead to higher levels of civic participation and trust in our communities.
CityCoins have given cities a new revenue source (over $20M so far to Miami and NYC), but so far these funds immediately hit the same bureaucratic obstacles that standard government operating budgets face. As a result, the community has been without funding to execute on its mission.
The ongoing success of the project is dependent on quicker deployment into projects that have long-lasting positive impact on the city and that create a positive feedback loop in the ecosystem.
This proposal aims to create a solution that would:
- Speed up funding for initiatives.
- Give token holders a voice while balancing the need to ensure that city governments remain engaged.
- Empower the community to operationalize their CityCoin, who can move quickly, and keep a close pulse on the ecosystem.
The summary of this structure includes the following entities / stakeholders:
CityCoins Governance Foundation
- The CityCoins Foundation will be set up as a public charity to build and support civic technology for the public good. It will be responsible for the long-term governance of the CityCoins protocol.
- City DAOs will be managed by token holders, who vote directly on the activities and funding proposals of the DAO treasury. The DAO is expected to support proposals that further the CityCoin’s mission such as the city chapter, grants program, or other necessary work streams needed to support its mission. Token holders may have the option to delegate their vote to trusted members of the community.
- CityCoin token holders in each city will also elect a council to ensure the DAO is operating in line with its mandate. All members of the Council must be local to that city and will have an effective veto over the DAO to ensure necessary checks and balances. Cities will be able to appoint members to the Council, thereby reinforcing their connection to the project.
- CityCoins Chapters are community initiatives to increase engagement and awareness in local cities. Chapters provide a central place for residents and city governments to engage with the community. Chapters are expected to implement initiatives such as: meet ups and events, hackathons and educational programs. Chapters may receive funding from the DAO to carry out these initiatives. Chapters will be expected to work with local community leaders to ensure that resident’s voices are heard and reflected in the DAO.
CityCoins Governance Foundation
- The CityCoins Governance Foundation will be structured as a 501(c)3 non-profit entity (pending necessary legal review) so that mining CityCoins will be treated as a tax-efficient donation.
- The CityCoins Foundation will appoint three directors to manage the day-to-day operations of the foundation and one supervisor to ensure directors are doing their job in accordance with the relevant laws.
- DAO token holders will have significant power to appoint or remove a director, member, or supervisor.
- The Foundation will be funded by block subsidies from CityCoins mining
- The Foundation will publish semi-annual transparency reports
- The Foundation will have the ability to establish local councils upon activation of new CityCoins.
- Each city will have up to 5 board members. 3 of the seats will be voted on by the community and 2 may be appointed by the city.
- Council members must be local to the city and will be KYC’d by the CityCoins Foundation.
- The mandate of the DAO is [to be decided by the CityCoins Community] .
- DAO proposals are subject to veto oversight from the Board to ensure it is operating in line with the DAO charter*.*
- DAO treasuries should prioritize proposals that support the CityCoins ecosystem (which is more specific than cities or residents in general)
- The DAO should seek to balance its budget through treasury stacking yields.
- The DAO cannot spend down more than 15% of its treasury in a given year.
- The goal of CityCoins Chapters is to educate local communities about CityCoins and onboard users to the ecosystem.
- Chapters will generally encourage residents to connect and collaborate on projects that support the mission of CityCoins. At a minimum, Chapters will be expected to implement initiatives such as: meet ups and events, community calls, hackathons, educational programs, etc.
- Each chapter can apply to receive funding for growth initiatives from the city’s treasury wallet. Funding requests should contain the Chapter’s budget in detail and reference a spreadsheet that includes the budget’s line items.
Voting on Proposals
- The process for voting on proposals will be modeled similarly to ENS DAO.
- Token holders have the ability to vote directly on funding proposals. This proposal calls for a system of direct-democracy, which offers more accountability and transparency than representative democracy.
- There should be sufficient checks and balances in the ecosystem to mitigate the risk of capture and single point of failure.
- The DAO cannot nuke the city’s treasury. We should implement meaningful constraint mechanisms to ensure the treasury is not only not depleted, but growing.
- Rigorous voting mechanisms (whether coin-weighted, holding-time-weighted, one-person-one-vote, or quadratic) are outside the scope of this proposal
- General on-chain identity is outside the scope of this proposal.