What kind of charities will ToON distribute money to?
Click for details
All donations will be subject to token holders community negotiations. The Maintainer will give the community several options for an off-chain vote and approval. Certainly, if vote results don’t look right, the community will always be able to block the distribution on-chain.
We are looking to support high-leverage charities, like fundamental research that has a potentially high positive impact on our world but there are no individual beneficiaries that would be interested in financing it thus being underfunded.
Economically speaking, the activities that have non-internalizable highly positive externalities.
All proposed charity fund distributions will be subject to approval of the token holders community.
What entity issues ToON?
Click for details
ToON Tokens are not issued by any entity. ToON is issued by ownerless smart contract on Ethereum network.
In exchange, the contract gets Donations in the form of ETH. All donations go to the contract’s charity fund and are to be distributed in accordance with the decision of the ToON DAO.
Who controls the smart contract?
Click for details
Smart contract is not controlled by anybody. The smart contract constitutes a ToON DAO - decentralised autonomous organisation, controlled by token holders.
- The holders elect the «Maintainer», a project leader, by using their balances (1 toon = 1 vote).
- The Maintainer can submit proposals for smart contract upgrades or distribution of the donations.
- The Maintainer can be replaced/impeached by token holders at any point of time.
How is the voting process organized?
Click for details
Unlike other DAOs there is no additional «governance» token on ToON DAO. Neither is there any need to stake tokens in order to vote.
- Your ToON Token is your governance token.
- Any ToON DAO member can simply call a «vote» method of smart contract, providing it with the address of a suggested Maintainer in ToON DAO profile. The vote can be changed at any point.
- After that the smart contract’s election methods will calculate the votes. Those can be called by anybody to exercise democracy.
How to impeach a Maintainer?
Click for details
It’s pretty easy. Any token holder has an ability to vote for a maintainer and to change the vote any time they like.
Whenever The Maintainer loses the majority of the votes, anybody can call a special method in smart contract that will “break the consensus”.
In this case all Maintainer’s proposals get postponed. Token issuing stops and the community gets the ability to find a new leader. After somebody new gets over 50% votes, the «restore consensus» method of smart contract is called and everything goes back to normal.
During the time when nobody has over 50% of the votes smart contract operates normally, without any problems, as a ERC20 token with limited supply (as new token issuing is paused).
How scalable is it?
Click for details
Obviously, due to blockchain limitations only a small number of votes can be calculated by a smart contract.
But the algorithm is written in the way that provides solutions to all potential issues.