> For the complete documentation index, see [llms.txt](https://xao.gitbook.io/xao-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xao.gitbook.io/xao-docs/getting-started/xao-genisis.md). # Xao Genisis This Genesis document provides the operational implementation and living rules of XaoDAO. It exists beneath the Constitution, which governs the philosophy, rights, and fundamental structure. Amendments to the Genesis require lower thresholds than those to the Constitution. ## I. Foundational Goals * Empowering participants through on-chain, enforceable contracts * Transparent reputation and governance * Fair profit-sharing tied to provable contributions * Building collective infrastructure with individual agency ## II. Membership & Participation Membership in XaoDAO is based entirely on Reputation, which reflects active contribution and trust. Any address that holds Reputation is considered a member. Tokens ($XAO) serve as the economic layer and can be staked to earn Reputation, but they do not grant membership or governance rights directly. A. Membership Criteria * Any address that holds Reputation is considered a member. * Reputation is not granted to organizations (e.g., bands, venues, promoters) directly. Only individual participants may hold Reputation. Organizations themselves cannot vote or propose; only the individuals who earn Reputation through their participation within them. * Only Reputation grants rights of governance, voting, and proposal submission. * $XAO tokens may be staked to earn Reputation but do not confer membership status. B. Rights of Members * Voting Rights: Only Reputation holders may vote on governance proposals. * Proposal Rights: Proposal submission requires staking a minimum of 10 Reputation (stake at risk for spam/malicious). * Economic Rights: Token holders may stake tokens, receive staking-based Reputation, and share in treasury profit distributions when eligible. ## III. Earning Reputation A. Event Participation | Action | Reputation Earned | | ------------------------------- | ----------------- | | Ticket Purchase | 1 | | Attending Event (before opener) | +1 bonus | | Late Arrival (after show start) | +0.5 bonus | Note: If a ticket is resold prior to the event, the reputation is burned and reminted for the new holder. Only the final attendee may earn attendance bonuses. B. Event Contribution | Role | Reputation Earned | | ------------------------------------------------------------------- | ----------------- | | Artist / Band / Venue Host / Promoter / Booking Agent / Crew Member | 2 per individual | Roles must be declared in the on-chain event contract at deployment. Reputation only awarded if executed through Xao. C. Governance Participation Proposal Submission * Requires staking 10 Reputation. * If rejected/spam/malicious: * 1st offense: 25% of staked Rep burned. * 2nd offense: 50% burned. * 3rd offense: 100% burned. * Beyond: Guardians may take additional slashing action. Voting Requirements * Requires staking 5% of a member’s Reputation in that domain. * Boundaries: minimum 1 Reputation. * At resolution: losing side’s stake burned, equal amount reminted and redistributed proportionally to winners. Rewards | Governance Action | Reputation Earned | | ------------------------------ | ------------------------------------------------- | | Voting on Assembly Proposal | +0.5 per vote (plus redistribution) | | Proposing Accepted Legislation | 5 | | Voting as Proxy | 0.01 per vote cast (from original voter’s reward) | * Each proxy earns a fraction of voting reward proportional to activity. * The original Reputation holder also earns full credit for their vote minus the proxy's cut. Losing Votes * Members on the losing side forfeit their staked Reputation (burned/reminted for redistribution). * No flat rewards are earned for losing votes. Delegation Limits & Anti-Farming Measures * No individual may represent more than 1% of the total circulating Reputation through delegation. * All delegations expire after 2 epochs (180 days) and must be reauthorized by the original holder. ## IV. Reputation by Staking * Reputation is awarded at the end of each 90-day epoch. * Unstaking resets your staking streak. * Rewards are based on epochs, not compounding. * Only the original staked amount counts toward staking Reputation. | Epoch | Reputation Earned | | -------- | ----------------- | | Epoch 1 | 1 | | Epoch 2 | 0.75 | | Epoch 3 | 0.5 | | Epoch 4+ | 0.25 per epoch | * An additional +1 reputation is earned for each consecutive year after year one of uninterrupted staking. * Reputation not granted until epoch end. * Cooldown: if unstake occurs, must wait a full epoch before restaking. * Partial Unstake: If a member partially unstakes, the remaining staked amount retains its epoch streak and continues to earn reputation rewards accordingly. Staking Scale * To earn 1 reputation over the course of a year, a member must stake 200 $XAO continuously. This is based on the yearly staking reward total of 2.5 reputation. (Example: 10,000 $XAO staked = 50 rep/year.) * Reputation earned through staking is credited at the end of each epoch and is subject to a 30% annual decay. ## V. Reputation Decay * All Reputation decays on a fixed schedule starting from the moment it is earned. * Decay Rate: 30% annually, applied continuously but checkpointed per epoch. * Applies to all forms of Reputation (staking, event, governance). * Burned Reputation through decay is not redistributed; it is permanently removed. * This prevents front-loading influence and ensures long-term alignment. ## VI. Governance Structure A. Domains * Treasury & Finance * Governance & Reputation * Product Development & Technical Infrastructure * Community & Growth B. Assembly Authority * The Assembly may vote to create, merge, or retire domains as the DAO evolves. C. Quorum & Approval Thresholds (per Constitution) | Proposal Type | Quorum / Participation Floor | Approval Threshold | Notes | | ------------------------------------------------------ | ----------------------------------------------------------------------- | ------------------ | ------------------------------------------------------------------------------------------------------------------------------- | | Lazy Consensus ratification | N/A | N/A | Passes if no objection ≥5% of circulating domain reputation during a ≥5‑day posting window; otherwise escalates to formal vote. | | Formal proposal (default) | 10% of circulating supply (domain‑weighted) | >50% YES | 7‑day voting window. | | Commander veto override | ≥30% participation | ≥75% YES | Veto may be overturned by the Assembly. | | Commander removal | ≥35% participation | ≥75% YES | Removal of Commander by Assembly. | | Commander succession override | ≥10% | ≥66% YES | Overrides automatic temporary succession. | | Guardian removal | ≥30% participation | ≥66% YES | Assembly‑initiated removal of a Guardian. | | Constitutional amendment | ≥35% participation | ≥80% YES | Article I is unamendable. | | Infrastructure migration (chain/L2) | ≥35% participation | ≥66% YES | Migration that preserves constitutional content. | | Treasury disbursement (grants/bounties/recurring) | ≥10% | >50% YES | May proceed by Lazy Consensus or formal vote. | | Reserved rewards policy change | ≥10% | >50% YES | “Simple majority”; uses default formal quorum if voted. | | Domain create/amend/dissolve | ≥10% | >50% YES | Authority granted to the Assembly. | | SubDAO charter recognition | ≥10% | >50% YES | Formation by simple majority. | | SubDAO suspension / dissolution / revocation | ≥10% | ≥66% YES | Revocation/dissolution thresholds. | | Emergency renewal | ≥10% | ≥66% YES | Declaration requires Guardian Council consent; duration ≤7 days unless renewed. | | Guardian Council decision quorum | ≥1/3 of recognized domain Guardians participating (per Council process) | – | Applies to Council actions (e.g., constitutional blocks, interpretations). | | Guardian Council: nullify Sybil‑manipulated reputation | Council quorum as above | ≥66% YES (Council) | Council‑level threshold. | D. Sessions & Cadence * Continuous governance: Proposals may be introduced at any time. * Epoch checkpoint (once per 90‑day epoch): summarize treasury status, confirm Guardian roster, ratify parameter tweaks, and publish a reputation issuance/decay report. * Discussion window: Minimum 48 hours before a vote may open. * Voting windows: Standard/Treasury 7 days; Constitutional amendment 10 days; Fast Track 72 hours. ## VII. Operational Lanes & Leadership Roles The Commander is the only fixed constitutional role and is not subject to Assembly appointment. Other leadership roles are domain-specific and serve as the executive staff. These positions report directly to the Commander and must be formally appointed by the Assembly via governance proposal. Formal appointments to leadership within these domains (other than the Commander) may be proposed by any member and must be ratified by the Assembly. Roles & Definitions * Chief Technical Officer (CTO): Oversees all smart contract development, technical infrastructure, and platform maintenance. * Chief Financial Officer (CFO): Manages treasury reporting, budgeting, disbursements, and financial planning. * Chief Operations Officer (COO): Coordinates logistics, day-to-day operations, and vendor/partner relationships. * Head of Community & Growth: Leads community engagement, ambassador programs, marketing, and growth campaigns. These roles may evolve, merge, split and be added to based on DAO needs. They are intended to provide structure without rigid hierarchy and are filled based on DAO needs. ## VIII. Proposal & Voting Process * Proposal Creation: Only Reputation holders may submit, requires staking 10 Rep. * Voting Mechanics: Single-choice, weighted by Rep, proxies allowed. * Lifecycle: Submission → Discussion → Voting → Execution. * Emergency/Expedited: Reserved for urgent matters (e.g., treasury security, constitutional defense). Requires Guardian Council approval to initiate. Any proposal marked "Emergency" must state its justification. Such proposals require: * Quorum: 10% * Approval: 66% Supermajority * Voting period: Minimum 48 hours, maximum 5 days * The Commander or any 3 Guardians together may flag a proposal as Emergency. The Assembly may override this flag before voting begins. ## IX. Hodlr Assembly Cadence * Governance tied to epochs (90-day cycle). * Assembly considered in continuous session with proposals/voting ongoing. * Epoch assembly once per epoch to review finances, governance, and subDAO activity. XaoDAO governance is structured around three branches of shared authority: the Hodlr Assembly (Reputation holders), the Guardians (oversight and protection), and the Commander (execution and leadership). Each branch provides checks and balances on the others to preserve decentralization and accountability. ## X. Contribution & Task System * Contributors are recognized through a task-based system. * Equal distribution of rewards for task-based groups. * Balance of token payments and Reputation rewards. * Contributor proposals may establish bounties/workstreams. Task-Based Contribution Framework All contributor tasks are evaluated against a five-tier scale based on complexity, time required, and value delivered. Reputation rewards are standardized per tier (1–30 Rep) and decay at the global rate. Token compensation (if applicable) may be proposed alongside and must be approved via DAO governance or delegated steward. Delegated reviewers must verify completion before rewards are issued. | Tier | Description | Est. Hours | Reputation | Suggested $XAO Reward | | ---- | ------------------------------- | ---------- | ---------- | --------------------- | | 1 | Microtask / Simple Contribution | 0.5–2 hr | 1 | $15 | | 2 | Standard / Repeatable Task | 2–6 hr | 3 | $30 | | 3 | Skilled / Creative Output | 6–15 hr | 7 | $90 | | 4 | Specialized / One-Off | 15–30 hr | 15 | $225 | | 5 | Mission / Lead Workstream | 30+ hr | 30 | $500 | Penalties & Fraud * Fraudulent or abusive task claims result in loss of Reputation. * All penalties are slashing-based (burn only). ## XI. Treasury * Purpose: Safeguard and allocate DAO resources. * Authority: All disbursements require Assembly-approved proposals executed via smart contract. * Custody: Treasury held in a multisig wallet. * Signers: Commander + at least one Guardian (permanent roles). * Guardians are primary custodians; Assembly oversight preserved. * Transparency: On-chain reporting of balances and disbursements at the end of each epoch. Proposal Execution of Treasury Funds * All treasury disbursements must be tied to an approved governance proposal. Smart contracts linked to proposals will execute disbursement upon vote resolution. If a manual disbursement is needed (e.g., for off-chain payouts), it must be signed by a multisig composed of designated officers, including the Commander and two Guardians. ## XII. Guardians * Guardians safeguard governance integrity, oversee proposals, and may apply slashing penalties for repeated abuse. * Minimum number: 5 (at launch, filled by founding members). * Cannot legislate but may submit proposals. * Work with Commander and Assembly under checks & balances. * May be recalled/replaced by Assembly oversight. Guardian Replacement Procedure * If the Assembly votes to remove a Guardian, the position shall be vacated immediately. The Assembly may initiate a replacement vote, and the new Guardian shall assume duties upon confirmation. A minimum of 5 Guardians must be maintained. If the Guardian count falls below 5, the Assembly must fill the vacancy within one epoch. Founding Period * During the founding period (4 epochs), Guardians may be temporarily appointed by the Commander. The Guardian count must expand to five within the first year. Future additions must follow standard appointment procedures outlined in the governance proposal process. ## XIII. Commander * Executes Hodlr Assembly-approved actions and ensures continuity. * Not epoch-based. * Cannot legislate but may submit proposals. * If removed, a Temporary Commander may be appointed until replacement is elected. Commander Removal & Temporary Appointment * If the Commander is removed by Assembly vote, the Guardians may appoint a Temporary Commander within 7 days. If no appointment is made, the Assembly may nominate a candidate directly. A new permanent Commander must be confirmed by Assembly vote within 1 epoch. ## XIV. Proposal Lifecycle, Reputation Transparency & Epochs * Proposal Lifecycle: Clear stages from submission to execution. * Reputation Transparency: Reputation scores publicly viewable on-chain. * Epochs: 90-day cycles define staking rewards, Assembly cadence, and reset points for cooldowns. ## XV. Founding Allocations Reputation Allocation Logic Reputation is granted upfront to the founding team and the primary investor based on their contribution type: * Founding Team: Receives reputation at a contributor rate of 20 $XAO = 1 Reputation * Primary Investor: Receives reputation immediately, but at the standard staking rate of 200 $XAO = 1 Reputation All reputation is subject to 30% annual decay. Once tokens unlock, recipients may stake their tokens to earn additional reputation under the normal rules. Allocation Breakdown | Role | $XAO Allocation | Conversion Rate | Reputation | | --------------------- | --------------------- | --------------- | ---------- | | Commander | 200,000 (2% of total) | 20 = 1 | 10,000 | | Founding Team Reserve | 500,000 (5% total) | 20 = 1 | 25,000 | | Primary Investor | 5,000,000 | 200 = 1 | 25,000 | Founding Team Reserve reputation will be allocated based on DAO-approved roles and contributions. Locked Tokens and Reputation * Tokens allocated to founding members and investors do not generate Reputation while under vesting or lock-up periods. Only unlocked tokens that are explicitly staked will earn Reputation. This ensures that governance influence must be earned through ongoing participation and staking, not granted passively through token allocation. For example, the primary investor’s tokens will not generate any Reputation until they unlock and are staked. ## XVI. Final Provisions A. Ratification * This Genesis Document enters into force upon approval by the founding Assembly. * Ratified on: August \_\_, 2025. B. Supremacy * In conflicts between Genesis Document and Constitution, Constitution prevails. C. Authority of the Assembly * The Assembly is the supreme decision-making body. * Guardians and Commander provide oversight but may not override Assembly decisions. D. Continuity & Succession * If any section is invalidated, remaining sections remain in effect. * Successor Assemblies may amend, expand, or repeal provisions. E. Initial Authority * Until sufficient membership exists, founding members act as Assembly, Guardians, and Commander. * Upon transition to community governance, all authority reverts to the DAO.