Understanding the Golem Ecosystem Nuances

Introduction: We are aiming to build a governance structure for Octant. One that is starting off small, focusing on creating a framework that will govern a community fund with about 200 ETH annually. But know this gov framework could expand beyond this fund as it becomes battle tested.

Generally, building a governance model requires that you understand the core principals and values of the project, what successful decentralization looks like, and a layout of key stakeholders, ecosystem nuances, and potential threats.

So this is what this doc aims to achieve, in giving you the context so that one can begin to think about the next part of the decision tree we find ourselves currently in.

Brief overview of Octant & Golem ecosystem

Octant is being built by Golem Foundation (GF), an entity that split off from The Golem Network in 2019. Golem is largely recognized within Ethereum because it had one of the most successful crowdfunding rounds in history, raising 820,000 ETH in 2016. The split in 2019 was so that more could be accomplished for the $GLM ecosystem without distracting the initial cpu project from their goals. So there are now two primary Golem entities: Factory & Foundation.

Foundation took with it a third of the remaining treasury funds, and when Ethereum moved to proof of stake, that presented an opportunity for GF to do something interesting. So, we staked 100,000 ETH, and Octant was born. Every 90 days, Octant runs a featured round where funds go to its users, and to public goods projects that participate. Users who lock $GLM into Octant receive an ETH reward proportional to what they lock (with added rewards to incentivize more locking). You can read about the rewards mechanism here.
TLDR: There are 4 pools that the rewards are streamed to: User Rewards (35%), a public goods matching pool (35%), a community fund (5%), GF operational costs (25%).

Here is a basic summary of the important points to consider for governance:

• 85% of the GLM token was distributed to the community on the first day.
• A majority of the $GLM token holders are not currently within the Octant ecosystem.
• The Octant ecosystem has two primary user groups:
  • Those who care about funding public goods
  • Those who care about returns on their capital.
• We have many whales in Octant, who primarily do not care about funding public goods. Same for PG funding, many users who care about this, and not about user rewards.

The core principals and values of the project

Octant’s mission is to become the first self-sustaining Public Goods Funding (PGF) ecosystem that financially empowers both public good projects and its users. Beyond driving value to both it’s users and the public goods funding ecosystem, core values center around sustainability, scalability, and aiming for outcomes that are win-win when possible.

What would successful governance for Octant look like?

Initially creating a governance framework which governs the community fund. This is open ended at the moment around whom would be eligible for governance, but general design principals should include:

• Alignment with Mission and Goals: All governance decisions and actions should align with supporting the overarching mission of empowering both public goods and individual users.
• Capture resistant: Framework ****safeguards against any form of manipulation or centralization of power.
• Effective Decision-Making: A framework that facilitates informed, transparent, and efficient decision-making, with clear guidelines on how proposals are submitted, discussed, and voted upon.
• Flexibility and Adaptability: The ability to evolve and adapt the structure in response to feedback loops.
• Transparency and Accountability: Clear communication channels and regular updates on governance activities, decisions, and their impact, fostering trust and confidence in the governance process.

Before Thinking About The Framework Itself (we are here)

The Social Aspects Of Governance:

Before designing Octant's governance framework, it's important for us to consider where community members see themselves as key participants: agents, contributors, and beneficiaries. This involves crafting a narrative that aligns with our mission, where every member feels an integral part of our journey towards empowerment.

Understanding these user personas is crucial. From this knowledge we can then begin to ponder how the framework can support these different users. We’re currently fleshing this work out in this Miro Board:

Simple flow of this

1. First, we list potential participants using sticky notes for easy identification.
2. Next, we outline necessary decision-making processes critical for governance operation, without specifying roles yet.