HOW QUADRATIC VOTING WORKS
Voting Power
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My Fan Tribe uses a quadratic voting based structure that takes into account an investor’s capital commitment.
This is done through the number of My Fan Tribe's NFTs an investor holds (1 NFT = 10ETH commitment).
Let's say that there is a...
- Member 1 who has contributed 20ETH to the tribe pool of funds, and received **2 Investment Ticket NFTs.
- Member 2 who has contributed 100ETH to the fund, and received **10 Investment Ticket NFTs.
The fact that Member 2 has 10 NFTs means that they would generally have 5 times more voting power than Member 1 under a pro-rata structure. This voting structure is not conducive to a deliberative environment where each Tribe member seeks to find consensus.
So, we propose to implement quadratic voting.
Delegation of Votes
Some Investors might not want to be involved in every fund decision or vote. In this case, they can delegate their voting points to:
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Other Investors, which would facilitate a straight transfer of voting points;
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The General Partnership, which would split the voting points evenly amongst each member of the GP; or
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A specific member of the tribe Committee.
Voting Process
Most major Tribe decisions will be decided through a vote, that will be open to all Investment Ticket NFT holders. Every vote will be accompanied with a detailed proposal that explains the action, why it has been recommended, and what will happen should the vote pass. Voting will be done on Snapshot.
Voting Items
The following list includes the types of proposals that voting members will be able to vote on:
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Invest - distributes funds from the Tribe Treasury to a project.
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This will be accompanied with a detailed diligence packet, argument from GP or Deal Lead, and community record.
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Process - Individual token holders can call a vote to move any project or company into Due Diligence, even if the Investment Committee has recommended against it. After Due Diligence, and LP can call a vote to invest, even if the Investment Committee has not.
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The Investment Committee exists to expedite the process and ensure we have a constant flow of events as the collective grows. However, at any point, token holders and any voting events embers can bypass the IC and operate events deal flow through votes.
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Budget - approves budget (either yearly for GPs, or for new initiatives)
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i.e. supporting a new global market to launch in, etc.
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Treasury management - eg, staking or investing funds to yield more fans to increase the Treasury size while waiting to apply to investments.