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ZENDAO

Treasury and Voting System

Horizen is building a decentralized autonomous organization (DAO) as a voting mechanism to allocate treasury funds to continue the development of the Horizen platform.


The ZenDAO will be one of many sidechain applications for the Horizen platform, demonstrating the power of our dApps and our commitment to decentralized, community based governance.

Horizen is building a system with strong economies in mind, creating incentive compatible foundations for all of our stakeholder groups that will drive the evolution of our platform. We are doing this with sound economics in mind to make sure we have a decentralized ecosystem that is indefinitely sustainable.

The ZenDAO uses economic theory, game theory, liquid democracy, and the lastest privacy technology to allocated treasury fund resources. We are not just creating technological innovations, we are also pushing social innovations in how people interact with each other.

HORIZEN TREASURY MODEL

An inclusive, provably fair, and transparent economic system with incentives to participate.

Er is een financiële reserve ten behoeve van voorstellen
Voorstellen worden beoordeeld en in stemming gebracht door houders van ZenCash (stakeholders)
Stemmen worden gewogen naar verhouding van hun stake-aandeel en zijn niet openbaar
Stemmen worden geteld waarna voorstellen worden aangenomen of afgewezen
1
3
5
7
2
4
6
Iedereen kan bestedingsvoorstellen indienen
Stemmen kan worden gedelegeerd aan vertrouwde personen en stemmers worden beloond voor hun deelname
Stemresultaten zijn geheim totdat de winnaar is bepaald om een eerlijke voortgang te waarborgen
1
Er is een financiële reserve ten behoeve van voorstellen
2
Iedereen kan bestedingsvoorstellen indienen
3
Voorstellen worden beoordeeld en in stemming gebracht door houders van ZenCash (stakeholders)
4
Stemmen kan worden gedelegeerd aan vertrouwde personen en stemmers worden beloond voor hun deelname
5
Stemmen worden gewogen naar verhouding van hun stake-aandeel en zijn niet openbaar
6
Stemresultaten zijn geheim totdat de winnaar is bepaald om een eerlijke voortgang te waarborgen
7
Stemmen worden geteld waarna voorstellen worden aangenomen of afgewezen

As an interim step, the Zen Blockchain Foundation allocates the 20% block reward treasury resources to continue the development and growth of Horizen.

In January 2018 we announced the Zen Blockchain Foundation commitment to transparency and initiated a project called Operational Radical Transparency which includes maintaining the community abreast and informed of all decisions and resource allocations.

  1. Hold Community Livestreams to keep community informed of project development, R&D status, partnerships, integrations, marketing, regional activities, and live Q&A session with team leadership.
  2. Maintain Trello board with project details
  3. Publish treasury accounting & expenditure breakdown by functional area.

2018

2019 (Projected)

Marketing
G&A
User Experience
Business Dev
Engineering
The ZenDAO is complex and will be released in phases (TBD).

ZenDAO SUMMARY LOGIC:

  1. As each block gets mined, coin transfers are made in a constant number of blocks called a treasury epoch, with duration of approximately one month.
  2. The epoch funding budget is presented as follows: each mined block within the epoch provides a percentage of coins to the treasury and the remainder to miners and Secure and Super Node operators reward. The project proposals are funded at the end of the epoch up to a predetermined of this treasury coin amount.
  3. Anyone can submit a proposal before the start of an epoch when the proposal is to be funded. The proposal submission burns a defined amount of ZEN and is included into the blockchain. A proposal may request funding for a single epoch or formultiple epochs.
  4. Proposals are approved for funding in the current epoch via voting. Each voter may issue a ballot that indicates “yes”, “no” or “abstain” for a specific proposal.
  5. Ballots are kept secret during the first stage of the epoch.
  6. The proposal score is the number of “yes” votes minus the number of “no” votes. The Proposal to pass has to have at least a predetermined percentage of all votes.
  7. Voters are cryptocurrency stakeholders who stake ZEN as a special locked deposit, a deposit can be withdrawn by the owner by issuing of another transaction, and that stake becomes available after the following three full funding epochs. Thus, a list of voters in each epoch is also always fixed, similarly to the list of proposals. The voting power is proportional to the deposit size with respect to the sum of all voting deposits.
  8. There is an incentive to make voting deposits and to take part in the voting process.
  9. A voter can make delegation for a specific proposal ballot or for a set of them to another voter.