Internal Nation3 structure & clarity on $veNATION vs Passport holders

Governance General Discussion
1

The question on the distinction between $veNATION holders and Passport holders (citizens) has come up often over the past couple of days. There have been very valid concerns that $veNATION holders should be deemed citizens, since they prove their commitment to Nation3 by locking their tokens, and that excluding them from being citizens removed the sense of belonging.

With the current set up, since the number of passports is limited, it might leave a large number of $veNATION holders incapable of participating in tasks and coordinating initiatives in guilds, since at the moment those are limited to Passport holders.

I have been thinking a lot about the topic and I agree that the distinction originally created between the two feels unnatural. The reason we proposed it was to create a limiting factor on the number of citizens in the early days of the project: our concern was that if that number grew before the organization was able to implement clear processes for discussion and governance, it would lead to chaos.

I fully agree that itā€™s important to acknowledge the role of those locking in their $NATION as citizens, both to create the feeling of belonging, and also to include them in governance, internal task-based economy, and services the cloud nation might provide in the future.

Therefore, now that the DAO is progressing towards organizing its governance process and work, Iā€™d like to propose the following internal structure:

  • The first $veNATION holders (with a minimum balance of 2 $veNATION) to claim the 420 Genesis NFT Passports would hold the privileged passport by virtue of their early contribution and larger stake. These passports will be claimable on a first-come, first-serve basis.

  • The Genesis NFT passports would primarily be a form of recognition as Genesis members of what I hope would one day become the worldā€™s most thriving and prosperous nation. In the future, they might also be a requisite for higher-responsibility tasks, since the longer stake represents a higher degree of trust in the ecosystem.

  • Any other $veNATION holders will be able to claim ordinary Citizen NFT Passport. The minimum required balance for this will be discussed in a separate Forum proposal, but Iā€™d suggest something much smaller, eg 0.5 $veNATION.*

  • All of Nation3 ecosystem, including Discord channels, Guilds and their respective Dework tasks, community hangouts, boosted rewards, power to make governance proposals and vote on them, use future cloud nation services, and any other benefits are therefore available to all Citizens.

*Importantly, Iā€™d like to propose a way for this amount to be borrowed from the Nation3 treasury in a private contract to ensure anyone, regardless of their financial status, can join.

An example could look like this:

Anna wants to join Nation3 and contribute as a Citizen, but she doesnā€™t have the money required to buy enough $NATION for the required lock. She forms an (on-chain) agreement with the DAO to borrow the $veNATION lock required to become a Citizen, so that Anna can start earning by completing tasks in the Nation3 internal economy. Within the next 3 months, the compensation for tasks Anna completes would go towards paying back the lock loan (with no interest) + towards her own lock. After that point, Anna can claim all compensation she makes from completing tasks.

This remains to be evaluated from technical perspective but should be possible.

In this model, the majority of $veNATION holders would also be Citizens (unless they choose not to be), since thereā€™s no additional requirement or cost.

This way, the core executive power, ability to contribute work, as well as all benefits stay with the Citizens. Citizenship also becomes something accessible through a relatively low required stake, and an ability to finance it through a loan if needed.

Look forward to your comments!

8 Likes
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Love this proposal. The strongest and most important element, I believe, will be the ability to take out a veNATION loan for citizenship. My problem with most current, influential DAOs is that they very quickly become pay-to-play, which screens out a lot of the people who might otherwise become extremely valuable contributors, AND attracts an unhealthy amount of speculation. A zero-interest loan program would allow people to start participating right away, and earn citizenship, which will both attract and retain the best possible cohort of people.

Seriously, bravo to this idea. Iā€™d like to see it implemented as quickly as possible.

4 Likes
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Can 420 Genesis NFT Passport holders also claim ordinary Citizen NFT passports?

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@anastasiya What happens if Anna fails to pay back her loan?

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I think this proposal goes in the right direction as it allows non-citizens to earn their way to citizenship and also sub-2 veNationals get some recognized status:

However, I think it is crucial to get the right balance between exclusivity and the catch-all approach. Being a potential Genesis passport member, I am concerned. The proposal clearly dismisses any potential benefits for me in the future (over the standard passport) - and I, as well as many others, didnā€™t think I am paying 4x the proposed threshold to get a status good (genesis passport) without any tangible benefits. I know you mention it might be required for further involvement and I want to be involved, so maybe it makes sense for me, after all. (Realistically, seeing DAOs restrict people from getting involved is quite funny as most DAOs suffer from low engagement in the long run after the hype is gone.)

Anyway, what I wanted to say is that the proposal can cause some bad blood between Genesis lockers and the DAO as many likely expected far more from locking 4x as much as others. I am not saying we should be specific at this point. Nevertheless, straight reducing the role to ā€œyou might get tasked with more complex stuffā€ is disrespectful as these people are, ultimately, the strongest believers in the project. Initial investors, who thought the 2 threshold will stay in place for some time. Therefore, I believe (and, actually, hope) that this proposal will be hard to pass in its current form.

Some possible ways forward:

  • Acknowledge that everyone cannot have a passport (at this stage) and build a lower level of membership with 2-tiered benefits. Ideally, this can be called ā€˜IDā€™. People with IDs can use the basic services of the nation but cannot do advanced stuff (ā€˜travelā€™ haha).

  • Stick with the proposal and raise the threshold at least to 1 such that Genesis is 2x the commitment and not 4x.

  • Stick with the proposal and acknowledge that Genesis passports will have some benefits in the future (discounts on services/swag, premium services/swag, preliminary access,etc. )

I am aware that this is, essentially, a clash between Genesis passport holders and newcomers and I think that we should seek a compromise that benefits both in the long term. The above benefits only newcomers.

2 Likes
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Will someone get multiple Genesis passports if they spread their nation across multiple accounts and pledge at the same time? How to stop it?

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The price of NFT passports for ordinary citizens should be lower than the maximum amount / number of citizens of $nation (such as 42000 $nation / 100000 citizens), because a part of $nation will be used for pledge or mission.

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Super happy you like the idea! And 100% agree, I hate the concept of creating superficial boundaries for joining communities based just on capital requirement (in most cases).

1 Like
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I donā€™t think we are currently setting a cap on the number of citizens Nation3 can have in the future? Do you think we need to?

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There isnā€™t much incentive for people do that. Governance power comes from $veNATION holdings, while the passports grants access to services, internal economy etc. Thereā€™s not much point in having multiple passports as it doesnā€™t give you anything - you canā€™t sell them since they are not transferrable.

1 Like
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The compensation earned from tasks would automatically go to the DAO to pay back the loan. If she doesnā€™t perform any work during these 3 months and therefore fails to pay it back, then her passport just gets burnt and she looses access to the community!

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I understand that I just gave a simple integer as an example. In fact, the more citizens, the better. We are a free and open country, and the NFT passport of ordinary citizens is far lower than 0.5 $Nation.

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I definitely agree we should ensure there are clear benefits to the earliest backers and believers in the project, the Genesis passport holders. Itā€™s just hard to predict the exact scenarios at this early stage, but I really think that as we develop things further, the benefit of having this smaller number of high-trust individuals shouldnā€™t be underestimated. But I totally get your points!

In principle I donā€™t oppose to raising the threshold to 1, provided that thereā€™s a way people can loan money to access this.

1 Like
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I see. Thank you for your answer

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The caveat here is that Anna would have gotten privileged access to the community for 3 months. However, this loans shouldnā€™t be given out programmatically, there should be an application form and they should be reviewed to ensure quality.

2 Likes
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Thereā€™s a balance to strike here. On one hand, itā€™s easier to build strong bonds with a community limited to 420 spots. On the other hand, we might be excluding valuable members who didnā€™t get their spot in the Genesis allocation.

If thereā€™s a way to loan out $NATION to those who want to join Nation3 but donā€™t have enough financial means, Iā€™m in favor of increasing the price of the normal passports to be maybe 1/2 of the Genesis ones. People need to have some skin in the game!

3 Likes
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Nation3 <> Citizens are attracted to each other.

I agree with Ana that there should be no cap on citizens. And there are obvious benefits for the earliest backers and Genesis passport holders, but new citizens also need enough motivation to join.

2 Likes
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From a project development perspective.

  1. More ordinary passports are necessary because there must be a threshold for nationals of cloud countries, but also much more than 420
    2, the proposed 420 as a privileged passport is a good suggestion, perhaps they enjoy higher power (but pay attention to the scope of power)
    3态Considering a program for underfunded personnel to be able to obtain a passport makes me feel your humanity, but a few points need to be noted.
  1. If the solution is through a task, is it possible that in the future there will not be enough tasks for the applicant to complete or the applicant will not have the appropriate capacity
  2. Or do we think about making a standard set of tasks: let applicants do this standard series of tasks to achieve deeper awareness, promotion or other roles for Nation3 as a verification criterion
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Nation3 should not is a minority group, and I think as long as the pledge nation3 should become a ordinary people, this is just about the weight of the future community voting rights, state of cloud, I hope itā€™s residents can include more faith, rather than some private cloud country club. Early creation residents receive passport, there is the early stage of the contribution of residents, and is not thick. But nation3 future, should be more people to join. Need to thrive.

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About borrowing do this task, questionable, if scientists to white piao task, they didnā€™t cost, they can constantly change status to borrow, do the task. They will just to earn a quick buck, no sense of belonging to nation3.