Original text: https://gov.xai.games/proposals/36846391324075808371689545184228725918077349084339168724903667901710140940722
Abstract
This document ('XIP-1') proposes the establishment of a decentralized autonomous organization called Xai DAO. The governance of this organization will involve users holding $XAI and $esXAI, which will serve as the primary tools to drive, develop, authorize, and manage the Xai chain.
Introduction
The Xai Foundation aims to build a community-centric governance framework that empowers the community with greater decision-making authority and ensures the sustainable development of the Xai ecosystem. To this end, this proposal introduces a governance model divided into three phases, with the initial phase aimed at gradually transferring control from the foundation to the DAO.
Phase 1: Implement the most basic DAO governance model, with the foundation retaining most decision-making power to ensure a stable and orderly transition.
Phases 2 and 3: Gradually implemented over the next 24 to 48 months, transferring more control and autonomy to the DAO, ultimately achieving a fully decentralized governance system.
Phased approach to DAO governance
By adopting a phased implementation governance model, the risks and challenges associated with prematurely introducing a fully decentralized system can be effectively avoided. Through a gradual approach, the Xai Foundation ensures that the evolution of the DAO is both robust and sustainable, reducing operational risks for the community and ecosystem during the adaptation process. Historical experience shows that directly advancing full decentralization without adequate preparation can lead to catastrophic consequences, such as:
2016 DAO hack incident: A DAO on the Ethereum platform suffered millions in losses due to inadequate security measures and vulnerabilities being exploited.
2021 initial launch of the Fei protocol: The overly aggressive mechanism design led to user fund losses and a dramatic decline in token value, severely undermining community confidence.
2020 SushiSwap leadership crisis: The founding team abruptly transferred control to the community, creating uncertainty and highlighting the importance of orderly governance transitions.
The phased strategy of the Xai Foundation ensures thorough testing and refinement of key governance aspects such as proposal management, voting, and compliance before transferring more power to the DAO, thereby reducing ecosystem risks and increasing the likelihood of long-term success.
Furthermore, this proposal introduces an initial governance structure, community incentive mechanisms, and plans to expand the Xai ecosystem into new areas such as artificial intelligence (AI), while continuing to maintain its core strength in the video game sector. The proposal also includes measures to assist U.S. residents in purchasing XAI tokens through U.S. digital asset exchanges and adopting the Agora platform to manage proposals and voting processes.
Proposal details
Voting rights incorporated into the charter
The foundation will amend the charter to explicitly state that users holding XAI or $esXAI (including staked $esXAI) on Arbitrum One can participate in governance voting.
Voting rights will be calculated proportionally per unit of XAI or $esXAI.
Major decisions require approval by majority vote before being executed by the Xai Foundation.
Voting rights may be delegated to other wallet addresses.
Proposal discussion
In the first phase of the DAO, all discussions regarding proposals will take place in the #ecosystem-proposal channel on Xai Discord.
Proposal submission
The foundation will select suitable initiatives or policy changes from discussions, organize them into 'Xai Improvement Proposals' (XIP), and submit them for DAO review.
Submitted proposals will be publicly released on an accessible voting platform.
Proposal voting
Proposals must receive at least 50.01% of the votes from the eligible tokens to pass.
The total number of votes must reach at least 1% (the 'quorum') to be considered valid.
Each proposal will set an initial three-day review period (the 'voting delay period') to allow XAI or $esXAI holders sufficient time to review and delegate their votes. Following this, there will be a formal voting period of seven days, after which the proposal will be determined as passed or failed.
For proposals that require on-chain transactions (such as fund transfers), there will also be a three-day execution period (the 'time lock') after passing.
Binding effect of approved proposals
Any passed proposal legally binds the foundation and requires execution within a reasonable timeframe.
If any part of the proposal is found to:
Violate relevant laws;
Endanger the foundation's ability to maintain XAI token listing eligibility;
Or violate existing contracts, then the binding effect of that part will be void.
Foundation veto power
The foundation reserves the right to veto any proposals deemed impractical, harmful, or inconsistent with ecosystem strategic goals.
Gas fee subsidy integration
Once a gas solution is developed and implemented that allows for real-time recycling of XAI for gas fees:
Gas subsidies exceeding 10 million XAI and future XAI allocated for subsidies will be transferred to the Xai Foundation treasury for centralized management.
The foundation will utilize these XAI for operational expenses, community incentives, and developer rewards.
The subsidy wallet address is: 0x94F4aBC83eae00b693286B6eDCa09e1D76183C97.
This system is permissioned and only available to major dApps, games, and AI projects; permissions will be revoked if abused.
Genesis participant incentives
The DAO will mint 25 million $XAI from community allocations to reward Xai Vanguard: the genesis participants.
Eligible participants must register using their Steam account on the Raijin platform and achieve at least one Steam achievement.
Additionally, another 25 million $XAI will be minted for continuously active genesis participants to earn through special competitions, accelerators, etc.
If genesis participants do not claim part of their tokens within 6 months, that portion will be converted into incentives for the entire community. This portion of minting will not increase the maximum supply and will come from the reserved community allocation.
Expansion to AI projects
The DAO formally approves the expansion of the Xai ecosystem to cover the field of artificial intelligence (AI).
The foundation will leverage existing resources to promote the integration and application of AI technologies while maintaining its commitment to the gaming sector.
Ecosystem growth incentives
The DAO will mint 100 million $XAI from community allocations for incentives:
Community adoption within the ecosystem and AI projects;
Sustained development of games on the Raijin platform;
Funding and marketing for third-party games;
Other community-related projects (such as DePin, NodeFi, etc.).
This portion of minting will also not increase the maximum supply and is solely for community incentives, not for the foundation's daily operations.
Xai Foundation buyback plan proposal
The foundation will initiate a monthly buyback plan to optimize XAI liquidity, ensure market makers have sufficient funds, and maintain a robust ecosystem incentive reserve.
The plan aims to align the foundation's interests with the community and demonstrate its long-term commitment to the value and utility of the token.
The repurchased tokens will be strategically used for liquidity provision, developer incentives, and various community-led initiatives; if necessary, the repurchased tokens may also be used to meet the foundation's operational needs.
This move will stabilize liquidity on major exchanges, strengthen the foundation's operational reserves, and promote sustainable growth of the XAI ecosystem. It is recommended to implement as soon as possible to seize favorable market opportunities and enhance community confidence in the foundation's strategic vision.
Proposal for entering the U.S. market
The foundation will actively seek to list $XAI on U.S. exchanges.
Adoption of the Agora platform for proposal and voting management
The foundation will use the Agora governance platform to manage the proposal submission and voting process within the DAO.
Agora provides a decentralized framework that ensures transparent submission of proposals, thorough discussion, and public voting, thereby fostering community collaboration and innovation.
Summary and next steps
This proposal lays the foundational governance framework for the Xai ecosystem, emphasizing community inclusivity and accountability, and introducing a series of incentives aimed at promoting long-term development in the gaming and AI sectors. By adopting the Agora platform, it will further enhance the transparency and efficiency of proposal and voting management.
The Xai Foundation now invites DAO members to vote on this proposal. Once a majority vote is passed, the measures outlined above can be implemented.
More information:
Game public chain Xai: Binance Square database
