LIP-4 Establish DAO Guidelines, Procedure and Team Payment Structure

Proposal #: 4

Title: LIP-4 Establish DAO Guidelines, Procedure and Team Payment Structure Author: Ethlizards Team Date Created: 6th April 2022

This vote is to implement the guidelines, procedures and team payment structure as detailed below:

ABSTRACT This document proposes the structure of a decentralized autonomous organization (DAO) that would be governed by the holders of Ethlizards, a decentralized (NFT) token that will serve as the primary token for governance.

Main changes

1. The Ethlizards protocol will be governed by Ethlizards holders on our Discourse page (https://forum.ethlizards.io/).

2. Preliminary proposals can be created by any holder of an Ethlizards NFT via snapshot (Snapshot) after garnering support

3. Starting from 1000 ETH trading volume on OpenSea, the founding team will be paid 15% of all revenue generated by the Treasury, as opposed to the current 50% of commissions revenue

4. For the first three years, the Founding Team’s 15% revenue share will be paid as follows: 25% shall be paid immediately and 75% will be vested or streamed linearly over a 12 month period.

5. Guidelines and process for Lizard Improvement Proposal/s(LIP)

Guidelines

1. Any member holding an Ethlizard has the ability to participate in Ethlizards governance by either creating proposals, giving feedback to proposals, or just simply voting on presented proposals.

2. The following information MUST be included in any proposal:

• DiscordID: So lizards know who to contact for information
• Discourse: Link to your thread in “New Proposal Discussions”
• Rationale: Clear and concise reason for the proposal
• Timeline: What is the time expectation or estimate?
• Cost: What is the maximum cost of this proposal?
• KPI: How will we know the proposal is successful and who will review/report back to the community?
• Any other helpful context or comments…

3. If a suggested proposal directly conflicts with a proposal that is currently up for vote, the second proposal should not go for a vote until a decision is made on the first proposal to avoid approval of opposing requirements.

4. A suggested proposal that directly conflicts with another approved proposal cannot go to vote for three months after the original proposal has been implemented to avoid wasting community assets.

5. The Founding team may put up a final proposal directly up for voting if it is deemed in the best interests of the DAO or community.

Process to creating a LIP (Lizard Improvement Proposal)

If you have an idea that you are passionate about and think that it will benefit the ethlizards and DAO, you have the power to help implement it.

We encourage you to put on your ‘lizard wizard’ hat and become the ‘Proposal Wizard’’ of your idea. As a Proposal Wizard, you are responsible for fostering initial discussion, refinements, listening to feedback and most importantly garnering support!

Only once the proposal follows the necessary guidelines and you feel the proposal has the necessary support, should you put it up for a preliminary vote…

This process gives all ethlizard owners the opportunity to propose, discuss and vote for any idea or proposal they think may benefit the ethlizard DAO.

Proposals will go through a two stage voting process.

Preliminary Proposal

• Firstly a post must be created on Discourse under ‘New Proposal Discussion’, followed by a minimum three (3) day discussion period where the community can give feedback to the person/people submitting the LIP.

• After the minimum three day window has passed, the LIP author may be advised to restructure the proposal in order to incorporate whatever feedback they have received to gain greater acceptance by the DAO community.

• If the Champion feels they have significant information and support for their proposal they are encouraged to create a snapshot Proposal, with “PRELIM” as a prefix on the title and call for a vote.

Snapshots votes are created at https://snapshot.org/#/ethlizards.eth

Upgrading to a final proposal

Once a preliminary proposal reaches quorum (currently set at 500) and majority support of lizards, the founders will upgrade that proposal and formally reintroduce it as a final proposal adding necessary detail or context. We will try our best to stick to the original vision of the proposal but there may be business, legal, and financial implications that need to be considered that may potentially lead to restructuring.

After a final proposal has been created it will be Announced on Discord to maximize voter turnout.

• Final proposals are created by the founding team

RATIONALE Following the approval of LIP #3 which significantly changed the original roadmap of the DAO, it was necessary to outline a detailed structure on how the DAO will be operated and aim for a more decentralized future. The founding team are all very committed to working on the project for years to come and have implemented changes to show our commitment to the project and the community.