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== Business mechanism == From an abstract level the business development of the aiGovDAO involves the following basic 2-phase process: Phase 1. '''Network of developers make free AI tools.''' cREP-weighted references develop the DAO's [[Forum]] with posts on i. [[Governance]] proposals & protocols ii. Culture and values iii. academic research articles iv. AI development Projects Phase 2. '''Devs do work for hire, modifying the existing free software for customer fees.''' a) $ Β --> wREP b) Citations --> DAO power & values This process collects and curates a network of like-minded developers who make useful and good AI tools which follow the values of the group. In service to the group's value for decentralization, AI tools are developed with a focus on 1. open source principles and transparent training data, and 2. small processor & P2P network focus. Once the objective value of the network's tools and talent is demonstrated after Stage 1, market demand from customers for the group's personalized work will lead to $ fees. Once $ fees are entering the DAO for work, the reputation mechanism functions according to [[DGF workflow]], which makes the DAO's power structure explicit and expresses their values concretely. === Phase 1 === In more detail, during Phase 1 the aiGovDAO is an [[Science DAO Framework|academic society]], which develops its governance protocols, as well as developing the field of AI research in general. [[Forum reference mechanisms|Citations]] between researchers and administrators for approved [[Forum|published]] articles, proposals, and projects will provide the basis of future power (i.e., [[reputation]]) in the DAO. During Phase 1, the aiGovDAO develops free tools as a collection of approved Projects. A ''Project'' is a collection of [[Forum reference mechanisms#Governance proposals|Proposals]] for how to develop AI tools (including how to limit their development). A Proposal can be added to the Forum by anyone. For instance, a Project may be an individual's recommended tool, or it may be a crowdsourced dev project (similar to the [[wikipedia:Polymath_Project|Polymath Project]]) consisting of multiple Proposals linked by citing each other, or it may be a statement intended to clarify the values of the group. Before the Projects and Proposals lead to citations from profitable uses in Phase 2, a generalized PageRank algorithm weights the value of such Proposals by their WDAG context in the [[Forum]]. This citation system allows the DAO to select some proposals to promote for member attention over others. The weights of value are specified by chat reputation tokens, called cREP. === Phase 2 === At Phase 2, the aiGovDAO has become more mature, and has implemented protocols determining rewards and punishments for member activity. Several approved Work Smart Contracts (WSCs) are available for customers and workers, created during Phase 1 with the protocols for validating the WSCs. Protocols for proposing legislative changes to the DAO are also in use, including how to recommend improvements to WSCs or validation scripts, or review procedures. At this stage, when $ fees from customers enter the system, work reputation tokens (wREP) are minted and distributed to participants. The WSCs [[Forum reference mechanisms|reference]] the proposals that helped the members complete their for-profit work, so the previously free tools cited reward their authors with wREP. The customers' fees are shared will all members proportional to their wREP holdings via the [[Reputation#REP Salary Mechanism|REP salary]]. This function of power and monetary reward assignment is basic [[DAO Governance Framework#DGF workflow|DGF workflow]].
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