HIP - 1.5: The Constitution

Abstract

A constitution is important for any organization to establish rules and objectives, including the Hodl Finance DAO. This proposal suggests dividing the constitution into two sections, with Section A requiring a higher quorum for more crucial changes, and Section B requiring a lower quorum for less crucial changes. All input and comments will be used to create the constitution, which will be voted upon by token holders.

Introduction

A constitution is a necessary document for any group or organization, including a company or association, to clarify its rules, purpose, and objectives. The constitution of the DAO is no exception since it will outline the governance requirements for exactly this.

Constitution

Proposed is to create the constitution together so the next step towards the establishment of the Hodl Finance DAO is taken. For this proposal there are no specific pros and cons. Setting boundaries for the DAO is the main aim of this proposal.

To start with, the constitution will be divided into two sections for a more balanced governance process: Section A and Section B.

Section A is of utmost importance for the proper functioning of the ecosystem as intended. Any changes to this section require a higher quorum to pass the voting process.

Section B, although less crucial, is still of significant importance and can be altered to optimize the overall operation of the DAO.

Section A

A quorum of 80% or more “for” votes is needed to pass

• Changes related to the Constitution (This);
• Changes related to the Bonding Treasury;
• Changes related to the Trading Treasury;
• Changes related to the Market Making & Investments;
• Changes related to where the Realized Profits flow to;
• Changes related to the signers of the multi-signature wallets;
• Changes related to the curator, Hodl Finance Ltd, in performing Market Making on behalf of the DAO;
• Changes related to the maximum investment size of $250,000 by the Directors of Hodl Finance Ltd. without the DAO’s approval;

Section B

A quorum of 50% or more “for” votes are needed to pass

• Changes related to the distribution of Realized Profits;
• Changes related to the Operations Treasury;
• Changes related to the Staking Treasury;
• Changes related to Research & Development;
• Changes related to what will be done with the bought back $HFD;
• Changes related to the Proposal lifecycle;
• Doing an investment higher than $250,000 in a single project;
• Adding or removing liquidity for $HFD;