Decentralisation is a crucial goal for any platform or protocol that seeks to create a truly representative ecosystem. This fosters a community-driven decision-making process, leading to greater resilience over time.
While Common Wealth’s aim is to be decentralised with fully autonomous smart contracts, we realise it will take some time to get there. It's essential to strike a balance between decentralisation and efficiency to maintain the platform or protocol's decentralised ethos while ensuring effective functioning.
As A16Z noted:
“As DeFi and NFT communities grow enormously in size, how to govern decentralized protocols takes on added importance. Now and over the next few years, one of the most immediate challenges facing these communities is to figure out governance — the act of managing collective decision-making in order to optimize funds and operations”
This governance structure prioritises the Council's responsibility to propose changes and initiatives that are in the best interest of the community. One crucial element of the governance structure will be a frictionless voting system that makes voting easy and accessible to all members of the community. The mechanics of the voting system are still being evaluated but the structure prioritises efficiency and adaptability in anticipation of a rapidly changing regulatory landscape.
All WLTH token holders will be able to stake to participate in Governance.
Early Stage
Growth Stage
Later Stage
Product and Tech
Core team building toward product / market fit
Core team invites community participation in product dev and maintenance
Core team steps back, hands reins to the community
VC funding to find product / market fit
Network effects allow for minimally extractive fee margin
Fees activated and distributed to active community contributors
Community Participation
Build openly, write good docs, communicate publicly
Lean into bounties, grants, rough consensus, permissioned voting
Community control via voting
Token Distribution
Promissory or permissioned distribution
Airdropped to sufficiently decentralised group of active contributors
Regulatory Status
No token at this stage, due to “efforts of others” Howey test
Tokens may still be securities due to “efforts of others”
Tokens may transmute to non-securities once control is sufficiently decentralised
When to Move to Next Objective
When there are network effects
When the community is sufficient without core team
You did it!
As the journey unfolds we will share our plans with you for feedback. CW is committed to transparency. Below you will find Common Wealth’s progressive decentralisation playbook… so far!
fully centralised (off-chain) (steering group 3 founding team members)
semi centralised (Snapshot, off-chain) (Community proposals & votes)
fully decentralised on-chain) (Community proposals & votes)
semi centralised
mostly centralised
fully decentralised (?)
Investment Funds
semi centralised (Snapshot, off-chain) Council proposes; Community votes; always non-custodial
Fully decentralised (on-chain) Council proposes; Community votes
fully decentralised (on-chain) Council proposes; Community votes
Last modified 5mo ago