hDAO: HAI inside Decision-Making Flow

At hDAO, we’re all about empowering our community to build a secure Web3 ecosystem that’s inclusive for all. To achieve the mission, we’re creating a platform that welcomes promising ideas and proposals from anyone in our community.

As befits DAOs, the hDAO governance process is divided into two parts — Request for Proposal (RFP) that promotes a rough idea and the reasoning for the change, and the Proposal itself — a fully-fledged document with an already existing vision of technical implementation. An RFP is a low-level unit to test the waters and shape the idea for something viable. Proposals are refined ideas that go through several checkpoints before they are available to be voted on. Proposal processes can be on-and off-chain in nature.

Each step of the governance process is powered by the HAI token.

Explaining Request-for-Proposal

Participation in hDAO starts with obtaining HAI, our governance token. By having some of it in one’s possession, an HAI holder can create Requests-for-Proposal, a document containing suggestions and describing possible changes in how hDAO would operate. Based on Diversity, Equity, and Inclusion principles, each member of the HAI community who has an idea can apply it in the form of an RFP.

An RFP is needed to ensure that a concept to be transformed into Proposal is fair, efficient, and doesn’t include spam, low-quality, or are-not-aligned with hDAO mission ideas.

To apply for an RFP, a holder needs to use a template and fill it out to submit his idea for a Committee review.

As was announced before, by staking a particular amount of HAI, a Member receives an equal amount of Voting Power that enables his right to participate in governance. To enable submission of RFP, it will be required to lock a certain amount of HAI. Such a step helps prevent spam and time wasting and shows a certain level of Member commitment and confidence regarding the effectiveness of the concept he offers to hDAO.

hDAO Committees

Let’s review hDAO Committees in more detail. Committees will be divided by field of expertise and influence. Primarily, they will be based on the most crucial topics that impact our growth. Each Committee will be formed from individuals with expertise in different areas. To become on a Committee, they should be selected by active community members, contribute to the ecosystem, and prove their expertise in needed fields.

The first step in establishing hDAO will involve forming the Quality Control Committee, which will play a crucial role in initiating the hDAO. The Quality Control Committee will oversee two important steps in Proposal formation, first as RFP and then as fully-fledged Proposals. It will also play a significant role in understanding the structure and forming other Committees, for example, those focused on controlling the work in fields such as Marketing and Business Development, Trust Army Management, Liquidity Management, and more.

Committee Review

When an RFP is submitted, it goes through a thorough review process by members of the Quality Control Committee. It assesses the idea’s potential, feasibility, and alignment with the hDAO mission before voting on approval or disapproval of it. That means only the best RFPs make it through to the next stage, which fits into the industry standards of the government process.

If an RFP is approved by the Committee, an RFP submitter gets back his HAI locked for the submission. In case of a declined RFP — the locked tokens will be sent to the hDAO Treasury and partially burnt.

Only after completing the steps described above, an RFP can be transformed into a Proposal by a Delegate and sent back to the Committee. The latter considers the Proposal, and either sends it back for revision or approves it to be voted on. If the Proposal is approved, a Delegate puts it on to the vote for further decision-making in the form of on-chain or off-chain voting.

Committee and Treasury Budgeting

As hDAO continues to take shape, the Hacken core team has finalized the decision regarding the distribution of the remaining HAI Treasury within departments and products.

For the year 2023, pre-selected budgets have been set for each department as follows:

• 10,000,000 HAI for Marketing, Business Development, Technology, and other growth initiatives
• 10,000,000 HAI for ETD Treasury
• 5,000,000 HAI for Trust Army soldiers and validators payouts
• 5,000,000 HAI for Liquidity Management
• 5,000,000 HAI for Governance APY payouts
• 5,200,000 HAI for Staking APY payouts

Hacken allocates budgets to departments for hDAO to take over the management of these budgets upon final formation. That means that only hDAO will have the power to decide what funds should be spent and what funds should remain untouched. Treasury Management will operate — that is one of the most significant roles in hDAO. Treasury Management will distribute the budget between different fields and products.

Furthermore, Hacken is pleased to announce that starting the next year, 325,000,000 HAI scheduled for unlocking and distribution will be fully transferred to the hDAO Treasury.

With the tokenomics update, only time-locked hDAO Treasury wallets and burn addresses would be deducted from the total supply to calculate the circulation supply figure. Respected changes will be implemented at CoinGecko and CoinMarketCap.

That is a significant milestone for Hacken, representing a step towards building a more decentralized and transparent ecosystem. Finally, the community will get a straightforward opportunity to influence growth with transparent tools and budgeting.

Voting for Proposal

Of course, we haven’t forgotten about the on-chain and off-chain Proposal process. Once a Proposal is approved by the Committee, it will be finally voted on. Voting is ultimately on our DAO Members and Delegates, who hold Voting Power to make decisions for the ecosystem.

As previously announced, Voting Power will be equal to the number of staked HAI tokens. Whenever community participants stake their HAI in our app, there is a choice for them to keep Voting Power to themselves or to delegate all of it to a qualified Delegate. Voting Power is revocable, and we will encourage people to be mindful of whether their Voting Power is used for voting.

hDAO Opens its Door for You

At hDAO, we always strive to create a more secure and inclusive Web3. Our Committee system is just one of the many ways we work on achieving this goal, and we’re excited to continue pushing the envelope in the months and years ahead.

Soon, the hDAO release paper will shed light on Committees’ and Delegates’ workflow principles, tools they will use, budgets, and chain network structure.

Become a part of the Hacken ecosystem today and start showing off your skills and expertise. By getting involved now, you will have a chance to bring value tomorrow and have the opportunity to shape the future of our ecosystem. Don’t miss out on this chance to be a part of something big and make your mark on the world of Web3 security.

Join our community today and let your journey with Hacken begin!