KIP - 88: DAO Guidance to the Cooperative

Context

When Kleros was initially created, DAO tooling was almost non-existent, so a cooperative entity was created to conclude token sales, hold the treasury, develop the protocol and find integrations. Now the Kleros DAO is way more mature, we have better tools to evaluate proposal impacts (futarchy) and there is a desire within the community to be more involved.

This will of the community can be seen with the failure of “KIP-81: Strategic PNK Sale to Kleros Cooperative” and the numerous requests from users on telegram to give more power to the DAO.

We therefore propose that the Kleros DAO would be able to provide instructions to the Cooperative. Of course, the cooperative is never legally obliged to follow the instructions of the DAO, but we think that it can be pushed to do so with two levers:

• If the cooperative were to significantly disregard the DAO wishes, the DAO would commit to stop the PNK grants to the cooperative (and possibly give those to another entity or decide of funding directly).
• There should be some goodwill of the cooperative to follow community wishes. We can expect that a significant number of Cooperative members are also PNK holders and they could vote in the cooperative assembly to uphold the DAO wishes.

Proposal

We propose for the DAO to make requests to determine large cooperative orientations. Those requests should account for around 70-80% of the cooperative net spending. The remaining 20-30% being left for fast or discretionary decision making.

The DAO commits that if those requests are mainly fulfilled, the DAO will provide more PNK grants to the Cooperative in the future. The DAO also commits that if those requests are mainly not fulfilled, the DAO will stop further PNK grants to the Cooperative and either fund one or multiple entities or spend its treasury directly. In case it is not obvious whether those requests are mainly fulfilled or mainly non fulfilled, this proposal shall have no effect.

By itself, the proposal has no direct execution and establishes a governance framework. Further proposals would consist of requests to the Cooperative.