Treasury systems

Cardano aims to bring democracy into the process, giving power to all and thus ensuring that decisions are fair. To this end, it is crucial to put in place transparent voting and funding processes. This is where Voltaire comes in.

The document on treasury systems for crypto-currencies introduces a decentralized, community-controlled and collaborative decision-making mechanism for the sustainable financing of the development and maintenance of the blockchain. This approach to collaborative intelligence is based on “liquid democracy,” a hybrid of direct and representative democracy that provides the benefits of both systems.

This approach allows the treasury system to leverage expertise in a voting process, as well as ensure that all ada holders have the opportunity to vote. Thus, for each project, a voter can vote directly or delegate his/her voting power to a community member who is an expert on the issue.

To ensure sustainability, the treasury system is controlled by the community and is constantly replenished with potential sources such as

  • some freshly minted coins that are held as funding
  • a percentage of the stake pools rewards and transaction fees
  • additional donations or charity

Because the funds are continually accumulating, it will be possible to finance projects and pay for improvement proposals.

Therefore, the financing process can consist of “cash flow periods”, each of which is divided into the following phases:

During each period, project proposals can be submitted, debated by experts and voters, and finally voted on to fund the most essential projects. Although anyone can submit a proposal, only certain proposals can be supported based on their importance and suitability for the development of the network.

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