TL/DR: This is a proposal that seeks to:
- Establish a formal election process (“CityDAO Election Process”) to be used initially for the CityDAO Multisig (“Multisig Election”),
- Establish compensation for the Elected Multisig,
- Empower Walter Clapp as the Election Facilitator (@wdclapp Discord handle) to administer the Multisig Election and all related aspects of the election process,
- Provide suitable compensation to Walter (and any team members, as may be determined by Walter in his discretion) for the efforts and undertakings relating to #1, 2, and 3 above (total target compensation = $9,000 (the “Election Comp Pool”); which includes Walter’s compensation plus money available to compensate assistant(s) at Walter’s discretion Such assistants shall be chosen by Walter.)
Fellow CityDAO Citizens: The time has long come for CityDAO to explore adding to the democratic process in furtherance of decentralization and distribution of power and authority – and this to the civilized world means only one thing: Elections. According to Chap GPT:
Here are some reasons why DAOs might use elections:
Representation: Elections allow DAO members to choose representatives who can make decisions on their behalf. This can help ensure that the decisions made by the DAO are aligned with the interests of its members.
Accountability: Elections can hold representatives accountable to the DAO members. If representatives fail to perform their duties or act in a way that is not in the best interests of the DAO, they can be removed from their positions through a vote.
Transparency: Elections can provide transparency in the decision-making process. All members have the opportunity to participate in the voting process and have a say in the direction of the DAO.
Efficiency: Elections can help DAOs make decisions more efficiently. By delegating decision-making to elected representatives, the DAO can avoid delays and inefficiencies that might result from a more decentralized decision-making process.
Legitimacy: Elections can help legitimize the decisions made by the DAO. When decisions are made through a transparent and democratic process, members are more likely to accept and support them.
So to start here at CityDAO, we invite you to discuss one of the most critical, yet unanswered, questions around CityDAO – how does someone get onto the Mulitisig? We invite the DAO to explore using the Multisig as an MVP for a new CityDAO Election Process.
What is the Multisig?
Currently - The “Multisig” is a body of eight (8) individuals who own private keys that own and control the CityDAO Main Safe Treasury. There are a few ways to manage a DAO Treasury and in the early days CityDAO chose the centralized manner of establishing a Multi-signature Smart Contract. Currently, 5 of 8 signers must sign a transaction to use money from the DAO’s treasury.
Recently, the CityDAO Multisig received multiple opinions from outside counsel relating to Multisig responsibilities at CityDAO. The Multisig now understands that it is intended solely to sign any transactions that move through the established governance processes (CIPs) as defined by the CityDAO Charter and Operating Agreement and applicable law, and no other powers or duties.
Why should the Multisig be elected?
The Multisig was initially established by Scott Fitsimones as the Founder & Organizer of CityDAO. The initial members consisted of the most active or interested participants in the CityDAO early days, but ultimately there was no process to select these Signers other than being known / liked by other Signers.
As of today (and over a year and a half later) this is still the process CityDAO uses – despite the Multisig’s ability to steer projects with soft power and “clout” - whether or not they are authorized to do so. Some signers have never been replaced while others use the role for political purposes.
Another issue arising from the current Multisig process is a backlog of transactions, or lengthy delay in executing transactions, due to Multisig apathy. Many times, transactions will sit for weeks going unsigned or unexecuted. The signers sometimes may play “hot potato” with the execution of a valid transaction simply since a gas fee is incurred and rarely reimbursed. Worse yet signers sometimes drag their feet to execute a transaction due to personal opinions or other political factors. On many occasions, while the treasury management team was attempting to sign swaps of ETH to USDC, the signers would not show up or collaborate in a meaningful fashion, and several of these transactions ultimately failed – costing the DAO money as the price of ETH continued to fall throughout 2022.
Last and perhaps most importantly, the Citizens of CityDAO have no meaningful way to participate on the Signer team, nor to express their opinion over the composition of the Signer group. Most Citizens have expressed some expectation that Signers should be cycled out, and that there should be a fair and transparent process for determining who is on the Multisig, but those calls have gone unsatisfied.
Who is Currently on CityDAO’s Multisig? (Discord Handles)
scottfits, Lyons800, Bpetes, Tuncay, kkopczyn, fugyeah, Da3vid, Blackacres
Note - One corollary issue echoed frequently with respect to the current Multisig is that some members of the Multisig also have control (in many cases exclusive control) over the remainder of the DAO’s tooling, including without limitation: CityDAO’s twitter, Notion page, Discord, Forum page, Snapshot, Google Domain and associated emails, the official calendar, and website, among others. All of these permissions should be decentralized as much as possible (this is a DAO after all) and an election would further help illustrate the need for distribution of power and authority, while enhancing access to participation on the Multisig itself. The CityDAO Election Process also could be used later, should CityDAO wish to explore the opportunities that may come along with converting its legal structure to a Co-Op model.
An elected Multisig with clear responsibility and clear compensation would help to alleviate all of the above-mentioned pain points while enhancing access to participation and promoting overall fairness in the Multisig selection process. Signers need to promptly sign and execute transactions and this Election Process seeks to result in a Multisig that acts with promptness and certainty in their roles and responsibilities.
Why Walter Clapp and what powers will he have?
Currently the Multisig consists of the eight (8) individuals listed above. The end output of this Multisig Election is to guarantee that the Signers have been elected, and to establish appropriate compensation for this Elected Multisig. It is possible that current Signers may be elected, but this outcome is not guaranteed, and the goal is to promote fairness and decentralization. Therefore, this CIP is intended to vest as much discretion, power, and authority in Walter Clapp as is necessary to allow him to undertake and conclude a process that brings CityDAO an Elected Multisig.
Walter makes sense given his background as political scientist and as an attorney, and his interest in revolutionizing the elective process in America, including a vision for a Constitutional Convention. Walter can achieve the goal of getting CityDAO from the appointed Multisig of today to the Elected Multisig of CityDAO’s future.
Your full support in this proposal is hereby requested in the name of enhancing CityDAO’s own best interests, and fairness for all participants.
If this CIP passes, Walter will have authority to conduct the Election Process as he sees fit. Currently he expects the process to include implementing and hosting a virtual synchronous election over a 24-hour period. The final election process will be determined by a taste and preference “temperature check” prior to the Election. He will work with current moderators and administrators to publish advance notice of the election, and the rules of the Election. Walter will later publish a CIP to ratify the election and to establish Multisig compensation moving forward.
Miscellaneous Terms of CIP-145
- Term/Date of Completion no later than July 1, 2023 (note – anticipated ASAP but providing this outside date)
- The Facilitator role for this Election is a non-replaceable role, meaning that the CIP is formally terminated if Walter not able to complete the election. Only a new CIP can establish a different or alternate election procedure.
- As stated above, the process will be finalized using a temp check CIP. Other CIPs relating to election considerations or compensation for elected Multisig members may follow depending on the nature of the process itself or its outcomes.
- Walter may use the assistance of others as he deems necessary, including the discretion to provide compensation from the Election Comp Pool in his discretion.
- Non-material adjustments and amendments allowed by Proposer or Walter prior to Snapshot, will be tracked, and kept transparent in this Forum page.
- Payment of any amounts hereunder will be made from the Main Treasury within five (5) days of submission of Utopia payment request with reasonable supporting documentation as necessary.
- This CIP-145 will be incorporated by reference into the Charter and included in any future versions or restatements.