Summary

This year we aim to establish a clear legal and technical architecture to ensure a secure foundation for many years to come. Upon acceptance, contributors will engage with legal and technical counsel to determine the best path forward and publish AIPs related to costs, configuration, and timeline to create an AirSwap Foundation and associated technical architecture.

Specification

Note: The following is for discussion purposes only. The details of this proposal may change and would only take effect once established in future AIP(s).

AirSwap is to be comprised of an AirSwap DAO with token holders, a multi-signature AirSwap Wallet with known signers, and an AirSwap Foundation to provide a liability shield for those participants. Once established, new work is to be funded through a grants-based process supported by the token treasury and ultimately recurring protocol fees. AirSwap DAO is to have the power to create on-chain transactions and AirSwap Wallet the power to veto. This interplay enables a normal operating flow with protections against abuse.

AirSwap DAO

A group of voters that can initiate on-chain transactions.

• DAO Members hold sAST (1:1 staked AST).
• Primary activity to create grant transactions but may include other on-chain activity.
• Voting functionality provided by Snapshot X (or similar).

AirSwap Wallet

A multi-signature wallet to hold and manage on-chain assets.

• Initial Signers to be specified; subsequent changes by DAO vote.
• Transactions can be initiated by DAO and potentially vetoed by Signers.
• Signature policy to be at least 2 of 3.

The DAO maintains ultimate control as the Wallet and its policies may be modified by DAO vote.

AirSwap Foundation

A Cayman Islands memberless foundation.

• Shields participants from liability for project-related on-chain actions.
• Recognizes actions effected by the DAO and Signers as legally binding.
• May enter into legal agreements by instruction from the DAO.

Grants Workflow

A grant is a request for funding via AIP (AirSwap Improvement Proposal) is to include amount, receiver, and timing. AirSwap DAO votes to accept a given proposal which initiates an on-chain transaction.

1. DAO Member creates a Grant AIP and petitions members for support.
2. Once at least 20% of sAST has signaled support, the author may publish the AIP to Snapshot X (or similar).
3. Days 1-5 of the following month the Grant AIP is voted on by the DAO.
4. If accepted with at least 75% participation a grant transaction is created with a 3-day delay.
5. Signers may veto within the delay period.

Grants Acceptance

• Many grants will have acceptance criteria; for example: a product or feature is released.
• Grants may be issued as an upfront amount and completion amount subject to acceptance.
• Either DAO or Signers may assess results against criteria and disburse completion amount.

Rationale

Today, AirSwap is comprised of an existing DAO, treasury Wallet, and legal entity that work together to propose, accept, and and execute treasury withdrawals. However, DAO votes are off-chain signals and the legacy legal entity only provides limited liability. Modernizing both and introducing a formal grants-based funding process will provide a secure foundation for many years to come.

Copyright

This proposal is public domain and released under CC0.