This document is a WIP, and acts as an information piece for the Overlay community on work currently being done around Overlay Foundation (the “Foundation”), and how that will impact governance and PlanckCat DAO.

Web3 governance is a difficult problem that many groups are actively working on, and no one group has found the perfect solution. It is possible that, as this experiment progresses, one way of doing things will prove to be the best. It’s probably more likely, however, that multiple ways of DAO-ing will work. Just like how every web2 company is different, with different needs, growth plans, strategies and employees, each DAO will probably have a different governance structure, set of rules and KPIs, and strategy for equitable and sustainable development.

It is in this light that the Foundation was established, with specific and tangible ways for PlanckCat DAO and the Foundation to interact. And of course, while this is the plan, it may change, and “The best laid schemes o’ mice an’ men / Gang aft a-gley”.

Or should we say “of cat and fren”? 😼

So without further ado, let’s step into the fray:

Overlay Foundation

The Foundation has been formed and is currently in good standing. Rejoice! 🌟

The purpose of the Foundation is to support the protocol ecosystem, and work for the protocol at the direction of the DAO. The TL;DR is that PlanckCat DAO (or some version of it) will have governance rights over the protocol.

The Foundation will have directors who run the Foundation, and have multi-sig access to the gnosis safe that governs the protocol to enact changes to contract parameters (voted on by the DAO). Over time, a checklist or “way of working” will emerge to create a framework for how the DAO and Foundation work together.

The list of possible decisions and directives that each of these two organizations (Foundation and DAO) can take is deep. It’s infeasible to list out exactly how each organization should act in every situation. That is why we need a general framework which individual actors can reference during any uncertain time. The framework should be agreed upon by each group. That framework is in the process of being built.

PlanckCat DAO

The story behind PlanckCat also echos the Overlay community: open, egalitarian, security obsessed, and somehow relaxed — all things cats seem to be.

The DAO will be responsible, ultimately, for the smooth and stable functioning of the protocol. This includes large and small decisions, on a daily basis — from risk metric adjustments of the protocol contracts to running hackathons to reviewing RFPs from other DAOs, protocols, and institutions. Many of these smaller decisions will be the general jurisdiction of working groups. The idea behind working groups comes from @pet3rpan’s thesis on community building. Also of note and reference is Yearn’s YIP-61 on multi-DAO governance.

Working groups should work for the directives and KPIs of PlanckCat DAO. Working groups will function semi-autonomously, create their own metrics for success, and be oriented towards a very specific goal. Any DAO member can propose a new working group and recruit other members, and any member within the DAO can be a member of a working group.

The purpose of a working group is to subdivide tasks so that DAO members are not overwhelmed and fatigued by common, everyday decisions and tasks. Larger decisions can still be made by the full DAO. The incentives for contributions to the DAO are currently being drawn up and may include a combination of mechanisms (Coordinape, Sourcecred, monthly stipends and more are all possible).

Supply and Demand side Working Groups

The two primary working groups that seem most needed at the current time are a supply side group and a demand side group. For now, let’s call Supply side Behemoth, and Demand side Alonzo.

The Supply side, Behemoth, is a working group of individuals focused on increasing the quantity & scope of the protocol for the community using the protocol. Their purpose within the larger DAO is to increase the supply of products that users want. They can do this through a number of ways:

-Risk analysis and metrics

-Quantitative analysis on new potential markets

-Outreach to wholesale / DAO treasury / corporate partners

-Research and development of new structured products

-UX Research and Design

Common skills within this group would include (but not be limited to): Quants, solidity and python devs, business development, defi growth hackers, ops, and ux designers and researchers.

The Demand side, Alonzo, is a working group of individuals dedicated to creating demand by promoting the protocol. Their purpose within the larger DAO is to aggregate community members to the protocol, and they can do this through a number of ways (short list, and not exhaustive):

-Communications

-Branding

-Media Exposure

-Bounty creation

-Outreach to retail

-Events

-etc.

Common skills within this group would include (but not be limited to): Community management, marketing, communications expert, sh*tposter, business development, and ops.

Many multiples of working groups can (and should) be launched by applying for grants through the Overlay Foundation Grant Program (TBD).

Working for Overlay Protocol via the Foundation

-Community Managers currently getting a small Cred and USDC stipend can apply to be part-time or full-time Community managers through the Foundation or through the DAO.

-The Foundation could directly hire members to work on the protocol/contracts/risk framework/community/promotion

Autonomy Software

So as to allay any confusion, the company (Overlay, Inc.) that employs the current core team is renaming to Autonomy Software.

The core team has always worked as a software development group, and will continue to work on other projects. Overlay Protocol will be a true decentralized protocol, governed by the DAO and run by the Foundation at the behest of the DAO. The core team members will remain stewards of the Discord as the gathering and discussion place for all things Overlay, with eventual turnover to the community. The DAO will vote whether they would like the Foundation to engage in a service agreement with Autonomy to work on Overlay Protocol through research and development, and to help manage the community.

The Trust

At a point in the future, the DAO will be wrapped in a Trust. Trusts have been around for hundreds of years. They are a very common legal mechanism, and a viable framework for legal wrapping of DAOs. Wrapping the DAO in a Trust will allow the DAO to engage in various activities as its own entity, and will help to protect DAO members, all while allowing the DAO to continue to act as it should. The Overlay Foundation will continue to exist, and to act at the behest of the DAO (via the Trust). The Trust will have a Trustee, who will be able to sign legal agreements and so forth, appointed and paid for by the DAO.

Ecosystem Structure​​

Setting sights on the Future

Overlay’s intention is, and always has been, to completely decentralize. This is an arduous and time consuming task — but one that must be undertaken. Overlay is here for the task, and excited to see what the community builds, and to grow.