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Article II. Structure and Governance

Section 1. Decentralized Autonomous Organization (DAO)

The Foundation shall operate primarily as a Decentralized Autonomous Organization (DAO), leveraging blockchain technology and smart contracts for governance and operations.

Section 2. Token-Based Governance

  1. Governance rights shall be extended to holders of Huly tokens (eHULY and nHULY).
  2. Token holders shall have voting power proportional to their token holdings.
  3. Both eHULY and nHULY tokens shall carry equal voting rights.

Section 3. DAO Structure

The DAO shall consist of the following components:

  1. Token Holders: All individuals or entities holding Huly tokens.
  2. Smart Contracts: Autonomous code executing governance decisions and managing Foundation resources.
  3. Proposal System: A mechanism for submitting, discussing, and voting on governance proposals.
  4. Treasury: A multi-signature wallet or smart contract managing the Foundation’s assets.

Section 4. Human Roles

While the Foundation operates primarily as a DAO, certain human roles may be established to facilitate operations:

  1. Secretary: A human appointee responsible for:
    1. Executing DAO decisions that require off-chain actions.
    2. Interfacing between the DAO and external entities.
    3. Preparing and publishing regular reports on Foundation activities.
    4. Managing day-to-day administrative tasks.
  2. Technical Maintainers: Individuals or teams responsible for maintaining and upgrading the Foundation’s technical infrastructure, subject to DAO approval.

Section 5. Working Groups

  1. The DAO may establish specialized working groups to focus on specific areas such as technical development, marketing, community engagement, or legal compliance.
  2. Working groups shall be formed and dissolved through DAO voting processes.
  3. Participation in working groups shall be open to all token holders, subject to DAO-approved selection criteria.

Section 6. Decision-Making Process

  1. Proposals: Any token holder may submit proposals for consideration by the DAO.
  2. Discussion Period: Each proposal shall have a designated discussion period for community feedback and refinement.
  3. Voting: After the discussion period, proposals shall be put to a vote among token holders.
  4. Execution: Approved proposals shall be executed automatically through smart contracts where possible, or by the Secretary for off-chain actions.

Section 7. Checks and Balances

  1. Multi-Signature Requirement: Any transaction involving more than 1% of the Foundation’s treasury shall require approval from multiple designated signers, as determined by the DAO.
  2. Timelock Mechanism: Major changes to the Foundation’s structure or operations shall be subject to a timelock period, allowing for community review and potential veto before implementation.
  3. Transparency: All Foundation activities, including financial transactions and voting results, shall be recorded on-chain and publicly accessible.

Section 8. Amendments to Governance

Any changes to this governance structure shall require a supermajority vote (two-thirds) of participating tokens, with a minimum quorum of 10% of all circulating tokens.