Judicial governance

Forum revaluation

Each DAO records its history in its Forum, which is a collection of posts linked by weighted references. Together with the initial values of the posts as determined by the Validation Pool that mints the REP for each post, the references determine the overall REP distribution in the DAO--i.e., the overall distribution of power in the DAO.

The primary type of judicial governance in a DAO is to redistribute power from one post to another. This redistribution is achieved by making a new post which has new references to posts which need to be revaluated.

Forum reference mechanisms

Main page: Forum reference mechanisms

The specific reference mechanisms which support judicial governance under DGF are leaching and donating. Combined with an incinerator function, these primitives are complete, in the sense that any reweighting possible for any Forum WDAG possible, may be achieved by a finite series of new posts with weighted references (the new posts will ultimately contain 0 new REP value, if they donate all their value to other posts during the weighting).

Governance tax

To achieve Forum revaluations, governmental intervention is required through revaluation primitives.

A basic principle of REP governance through the Forum reference mechanism is that REP actually doesn't cost anything directly. Revaluation is just a function of a certain percent of all new posts to tie REP minting and burning to real cash. If every Work SC is required to use a fixed percent g of the new REP minted with it to do governance then all Work REP is still the same value as any other contract. If no governance needs to happen at a particular moment then the g percent can be burned to keep that contract the same value as others and the price of governance is still bound by g percent. The DAO should in general be happy when REP is burned instead of redistributed by governance, even the particular worker as long as every SC does the same, because it means the REP they do have is more valuable. It all works out following the quantity theory of money that if you have the same proportion of total tokens then you have the same proportion of power and reward, whether the absolute number of tokens is up or down.

UIs can automatically calculate the estimated present value of our tokens based on the tokenomics formulas, to give users a sense of what the tokens mean without requiring the users to make the mental estimates.