Currently the industry standard is for a core member group or a chosen third party to be in control of the multisig, serving as a safeguard of the protocol. Instead of the traditional approach, we are creating subordinate departments/branches within New Order that would each house a multisig signer. These signers would be community assigned as leaders for the departments based on the reputation they have developed through their contributions and participation in the departments of interest. This allows the community to decide the multisig holders, and the parameters for the decision are aligned with their importance in the DAO governance ecosystem. As an example, a Portfolio Manager Robert has had an outstanding track record in finding the most profitable and efficient yield strategy for the assets in the treasury, allowing the DAO to grow above industry standards. He was further heavily contributing in proposal generation and gained the respect of the community for his thoughtful discussions and recommendation. He can run in the election for the lead position in the New Order DAO Portfolio Management department. This would allow him to be paid by the DAO, being responsible for a multisig key and managing the whole department ensuring a swift governance process is maintained.
Our organization has many different departments ranging from Marketing and R&D to the Developer department. Similar to Robert's example above, each of the departments will have an elected leader who will be paid by the DAO in their choice of asset. The salary and the employment terms will all be decided by the payroll department, to ensure that the community is in charge of hiring and compensation of each leader. Further, just like the key issued to Robert, each department leader will also be in charge of a multisig key, acting as the final safety layer of the DAO. Employing a SubDAO approach results in an efficient allocation of resources and effort by the community managers, further streamlining operations.
This approach allows for expert community members to hold the multisig keys, instead of centralizing control in the core team. The department leaders are community elected through a rigorous analysis of their contributions to the success of the department that they are running in. When a proposal idea arises, for example a strong opinion about the direction of the treasury yield investing, the community member has a direct department to communicate with. The member will contact the department of Portfolio Management instead of contacting the general Q/A chat or DAO forum. With this approach proposal generation and community engagement is more organized and efficient, streamlining decision making.
Further, to promote our approach to being chain agnostic, we will be ensuring equal voting weighting to, for example, BSC and Avalanche L1’s even though the Polygon and Ethereum communities trump them in size and development. These L1’s would also be given their department and leader, exercising the same access to funding and attention from the DAO. This approach will foster faster development in those communities allowing members to equally participate across the chains without the threat of being segregated. With this organizational division of the DAO to promote efficient operations, we are also introducing much needed modularity, as new leaders can be voted in through decentralized community voting. This introduces a very important level of flexibility that is mandatory in such a fast developing space.
This approach is mandatory for our aspirations of a financial ecosystem, as we require full time employees to maintain the structural and organization well being of governance. The current community compensation mechanisms are not able to support our goal of becoming the largest treasury of assets in DeFi and to incubate dominating protocols. Industry leading professionals would not be interested in operating part time, completing tasks on an as-needed basis. Rather employing department leaders and retaining experts long term through a just compensation method will allow us to align their goals with the DAO’s creating much needed synergies.
At genesis, a 6/9 multisig would be present that is hosted by Gnosis SafeSnap. As mentioned, each elected department leader will be carefully allocated a salary and a budget by the payroll department. The allocated funds will allow the department leaders to further efficiently grow the DAO.