¶ 2.1. Objectives and vision of the RealToken DAO
The RealToken DAO (REG) aims to create a decentralized community where REG token holders can participate in important decisions regarding the ecosystem of decentralized applications (DApps) usable by Realtokens. The idea is to make investment in physical world assets as accessible, liquid, and transparent as possible, while providing more opportunities and use cases for investors with their investments. A user can therefore participate in the governance of the DAO by owning REG, and make investments through the purchase and ownership of Realtoken tokens. This can be one or the other or both; it is not necessary to own Realtoken tokens to participate in the governance of the DAO, just as it is not necessary to own REG tokens to use the DAO's services.
REG = Governance DAO
Realtoken = Tokenized investment
The vision of the RealToken DAO is to revolutionize the market for tokenization of physical and traditional assets using blockchain technology. Its main objectives are:
- Democratize access to investment,
- Create a transparent and fair ecosystem,
- Optimize returns for Realtoken token holders,
- Make tokenized assets more liquid,
- Bring new use cases to investors with their investments.
The DAO will therefore give direction for the decentralized ecosystem, and will allow new products and services created by the community to emerge. The DAO can be seen as an incubator of ideas and startups, which will allow the ecosystem to evolve. The financial benefits of the ecosystem's applications will be usable by the DAO to offer new products and services to token holders, finance ecosystem providers, and for the development of new applications that contribute to the evolution of the ecosystem.
The RealToken DAO will make decisions regarding the ecosystem, such as:
- What new use cases to create for investors with their RealTokens,
- Which ecosystem providers to fund,
- What new applications to develop to improve the ecosystem,
- Which protocols to integrate into the ecosystem,
- What investments to make in the ecosystem,
- What partnerships to make in the ecosystem,
- What parameters of DApps to apply (swap fees, interest rates, etc.).
*ecosystem implies the decentralized part.
The RealToken DAO aims to establish a new paradigm in the industry of tokenization of physical and traditional assets by standardizing ownership support via tokens (Realtokens), making them interoperable, by fully exploiting the potential of blockchain technology and decentralized governance structures. Its strategic objectives include:
- Advanced tokenization: Develop sophisticated protocols for the digital representation of physical and traditional assets, enabling increased fractionalization and liquidity.
- Innovative governance: Implement voting and proposal mechanisms adapted to the specificities of the RWA market, ensuring effective and fair decision-making for the DApp ecosystem.
- DeFi integration: Create synergies with the DeFi ecosystem to optimize asset management and maximize yields (yield farming, collateralized loans, etc.).
- Regulatory compliance: Develop innovative solutions to navigate the complex regulatory landscape of tokenized assets globally.
- Interoperability: Establish bridges with other protocols to facilitate the exchange and use of RWA tokens in a broader ecosystem.
- Decentralized risk management: Implement community mechanisms to assess, mitigate, and manage risks related to RWA investments.
- Technological innovation: Leverage advances in oracles, zk-proofs, and other blockchain technologies to improve the efficiency and security of the ecosystem.
- Innovation in the very construction of the DAO: Create a DAO that is a governance model for other DAOs, using innovative voting and proposal mechanisms (Citizen, Activity, and Collector NFT system).
¶ 2.2. Structure and general functioning
The RealToken DAO functions as an online community where REG token holders can vote on important decisions, as well as propose ideas to improve the ecosystem through proposals. Each member can assert and hear their vision, the weight of votes depends on several parameters, such as the number of REG tokens owned, how you use them, etc., meaning that 1 REG does not necessarily equal 1 vote. The decisions made concern the future of the ecosystem of decentralized applications (DApps) usable by RealTokens, and how to improve services for all users.
- There are therefore the
investors who own RealTokens, users of the DAO's services,
- The
owners of the DAO through REG tokens, who make decisions concerning the ecosystem,
Ecosystem providers, such as development companies or independent developers, experts in various fields related to the functioning of the DAO and its ecosystem, media personalities who can help make the ecosystem known, etc.
The structure of the RealToken DAO is based on several key elements:
- Governance tokens (REG): Allow participation in votes, making proposals, and benefiting from advantages in the ecosystem (fee reductions, various bonuses, etc.),
- Proposal system: Members can submit and implement ideas to improve the ecosystem,
- Voting mechanism: REG holders vote on proposals,
- Smart contracts: Ensure automatic execution of decisions made,
- Treasury: Manages the DAO's funds to finance approved projects,
- Specialized committees: Specialized committees can be created to examine specific topics or act on particular elements,
- Ecosystem providers: Providers approved by the DAO can submit quotes and budgets for approval for the realization of tasks in the ecosystem, or accomplish one-time or long-term missions,
- RealToken holders: These are the users/clients of the DAO's services, they can use the DAO's services.
The general functioning involves a continuous cycle of proposals, discussions, votes, and implementation of decisions made by the DAO owners. Voters have the responsibility for the content of proposals, and therefore for the on-chain execution of decisions made. A voter must therefore give their opinion on the objective of the proposal, and its impact on the ecosystem, but also has the responsibility to verify that the content of the on-chain execution is in accordance with the proposal. The DAO will implement successive versions of its governance system, described in more detail in this document.
Vision of the structure and functioning of the RealToken DAO in the medium term:
- Multi-level governance:
- The complexity of decisions to be made and their plurality may require the DAO to set up specialized committees, such as a security committee, a regulation committee, a development committee, finance committee, etc.,
- These committees will be composed of experts in their fields, they will be responsible for reviewing proposals in their domains, providing expertise, and simplifying complex subjects for other DAO members,
- Sometimes these committees will have short-term mandates to perform a specific task, and will have to report back to the DAO once the study or work is completed,
- It is also possible that committees have special rights on smart contracts such as emergency pause, in order to be able to react more quickly in case of critical anomaly.
- Advanced voting mechanisms:
- Voting will not function in a classic way (1 token = 1 vote), but there will be a system of weighting votes based on the number of tokens owned, the time tokens are locked for voting, the location of tokens (wallets, liquidity pools, lock vaults, in NFTs, locked in other ecosystem applications, etc.),
- Snapshot system for the entire duration of an epoch, voting power will be fixed for the entire duration of an epoch, this will limit speculation and governance attacks. Updates to voting powers will be done through a DAO vote to guarantee against any manipulations or attacks (activated in a second phase),
- Citizen, Activity, and Collector NFT system, which will reward DAO contributors, bring new mechanisms for valuing voting power and aligning interests.
- Structured proposal system:
- The issuance of an idea or proposal allows anyone to submit an idea or proposal, which will then be accompanied by active DAO users to go through the following steps:
- Discussion phases, debate, refinement of proposals,
- Submission of the proposal to experts to analyze the details of the proposal,
- Creation and review of the proposal draft,
- Submission of on-chain test of the proposal,
- DAO vote on the proposal,
- Execution of the proposal.
- On-chain/off-chain integration:
- Off-chain discussions and deliberations on the proposal for more flexibility (via the Forum),
- On-chain votes for transparency and immutability,
- On-chain execution of the proposal.
- Treasury management:
- Treasury contract controlled by the DAO for main funds,
- Automatic allocation based on votes for certain budgets,
- DAO decisions on budgets and fund allocations,
- Implementation of bonuses/advantages in ecosystem DApps for users who have REG tokens,
- Incentive mechanisms:
- Rewards for active participation and contributions,
- Penalties for malicious behavior.
- Governance evolutivity:
- Ability to update governance parameters via votes,
- Smart contract upgrade mechanisms for adaptability,
- Ability to update parameters of ecosystem DApps.
REG token holders are at the heart of the RealToken DAO. Their main role is to participate in decisions that shape the future of the ecosystem. They can vote on proposals, suggest ideas, and benefit from advantages in using the DAO's services.
REG holders play several important roles:
- Governance: participate in discussions,
control the accuracy and vote on proposals,
- Proposal: Submit new ideas to improve the ecosystem,
- Surveillance: Ensure proper management of the DAO and its resources,
- Beneficiaries: Enjoy advantages in using ecosystem services,
- Ambassadors: Promote the DAO and attract new members.
The more a member holds and positively uses their REG tokens, the greater their influence and advantages in the ecosystem. The DAO encourages, through various forms of advantages, bonuses, and boosts, the long-term holding of REG and active participation in governance.
The role of REG holders is multidimensional and crucial for the ecosystem (role according to engagement and competence):
- Strategic governance:
- Define the long-term direction of the ecosystem,
- Vote on updates to governance parameters and smart contracts,
- Participate in the selection and evaluation of service providers,
- Risk management:
- Evaluate and vote on proposals while verifying the compliance of the code to be executed,
- Participate in specialized committees for which they have the skills.
- Resource allocation:
- Decide on the allocation of treasury funds,
- Vote on budgets for the development of new applications and other services,
- Vote on ecosystem DApp parameters influencing money inflows into the treasury.
- Innovation and development:
- Propose and evaluate new use cases for Realtoken tokens,
- Contribute to technical development via improvement proposals,
- Incentive mechanisms:
- Benefit from rewards based on their active participation,
- Access premium features in ecosystem DApps,
- Benefit from favorable interest rates or increased borrowing power.
- Representation and networking:
- Act as ambassadors of the DAO in the broader blockchain ecosystem,
- Facilitate partnerships and integration with other protocols,
- Participate in events and workshops to promote the DAO,
- Contribute to creating a broader and stronger ecosystem.
- Control and balance:
- Ensure transparency and accountability in DAO management,
- Participate in conflict resolution mechanisms,
- Ensure the stability and security of the ecosystem,
- Ensure balance between voting powers and rights of REG holders,
- Balance bonuses/advantages of REG holders in relation to other ecosystem actors,
- Be the guardian of a sustainable and solid treasury.
- Evolution of the governance system:
- Propose and vote on improvements to the governance system itself,
- Participate in the implementation and testing of new voting mechanisms.
REG holders have a determining role in the ecosystem, they are both the guardians of the DAO treasury but also the decision-makers of its future, ensuring the stability and security of the ecosystem while benefiting from advantages in using the DAO's services.
At this stage, it is important to emphasize the importance of the distinction between REG, therefore the DAO, and Realtokens, investments in tokenized assets.
The DAO through REG gives a right over the ecosystem of decentralized applications, and all services related to the DAO.
Realtokens (investment in assets) individually give rights over their underlying.
The DAO will control several decentralized applications that will be used by DAO clients (investors in tokenized assets with Realtokens), these applications may collect fees, offer premium functions, or be free according to DAO decisions.
These two token classes are complementary and can be owned and used in duo or individually according to each person's profile.
REG does not give any rights over tokenized assets, their management, nor over the governance of companies that operate as partners, the only right over the latter stems from mandates granted by the DAO.
Realtokens do not give any rights over the management, treasury, or various bonuses related to the ecosystem, Realtokens represent rights over the underlying asset only.