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Proposed Changes to Matou DAO tokenomics

Here’s a set of concrete enhancements to the Matou DAO governance and tokenomics models—directly mapping the Community Input Report recommendations onto the two-house, token-based framework.

A. Governance Changes​

1. Introduce Quadratic Voting across Both Houses​

  • What: Replace simple 1-token-1-vote in strategic and implementation votes with a quadratic voting mechanism.
  • Why: Preserves one-person-one-voice fairness while allowing passionate minority voices to carry extra weight without enabling plutocracy.

2. Formalize an “Elder Advisory Council” Tier​

  • What:
    • Create a third, non-transferable token—$ElderToken—minted only to recognised kaumātua/kuia.
    • Grant this tier limited veto or advisory rights on culturally sensitive proposals in the Community Leaders house.
  • Why: Embeds cultural stewardship directly into the on-chain governance flow, honouring mātauranga and ensuring respect for tradition.

3. Hybrid Proposal Workflow with Rotating Committee Filter​

  • What:
    1. Submission Phase: Any token-holder (Community or Contributor) may file a proposal.
    2. Committee Review: A rotating mini-council of 5–7 elected Community Leaders vets proposals for completeness, cultural alignment, and feasibility.
    3. Community Vote: Vetting passes proposals to the full Community Leaders house for quadratic voting.
  • Why: Balances full-scale participation with quality control and scalability, preventing “DAO spam.”

4. Role-Based Access & Reputation Tokens​

  • What:
    • Issue on-chain Reputation Tokens for verifiable volunteer contributions (e.g., code reviews, event organisation).
    • Reputation Tokens grant capped extra voting weight in Contributor Governance but cannot exceed 2× your base voting power.
  • Why: Rewards active contributors and deepens engagement, while caps and on-chain transparency prevent gaming.

5. On-Chain Dispute Resolution & Multisig Module​

  • What:
    • Embed a 3-of-5 multisig arbitration committee within smart contracts, automatically triggered if a proposal fails by <5% margin or if flagged by ≥3 ElderTokens.
  • Why: Provides a clear, culturally sensitive path for resolving tight or contested votes without external off-chain processes.

B. Tokenomics Changes​

1. Dual-Pool Treasury Allocation​

  • What: Split the $MAT staking pools into:
    • Infrastructure Pool (70%) — for land, food, water, housing, connectivity, education projects
    • Whānau Grant Pool (30%) — for small whānau-level initiatives and direct support
  • Why: Reflects the community’s preference for foundational public goods while preserving meaningful whānau grants.

2. Automated Surplus Recycling​

  • What: Smart-contract rule: any unspent project funds are automatically returned to the main treasury at year-end, unless a >50% quadratic vote approves a specific multi-year rollover.
  • Why: Ensures idle funds don’t stagnate, yet allows flexibility for legitimate long-term projects.

3. Milestone-Based Vesting & KPI Oracles​

  • What: Infrastructure Pool disbursements occur in tranches tied to on-chain KPI verifications (e.g., garden planted, water system live) fed by decentralised oracles or community-verified attestations.
  • Why: Aligns token releases with real-world progress, improving accountability and impact.

4. Contributor Reward Split & Flexibility​

  • What: When Contributors earn $MAT for work:
    • Default 70/30 split → 70% to contributor, 30% auto-channeled to treasury
    • Opt-in slider in UI to adjust down to 60/40 or up to 80/20, capped between 60–80%
  • Why: Balances personal incentive with collective reinvestment, giving contributors agency without starving the treasury.

5. Optional Community Service Fee (CST)​

  • What: A small, configurable protocol fee (e.g., 0.5%) on certain marketplace transactions or IDI service fees. Community votes can raise or lower it within a 0–1% band.
  • Why: Creates a steady revenue stream without the stigma of heavy “taxation,” and ensures adaptability to economic conditions.

6. Donation-for-Vote Quadratic Funding​

  • What: Allow outside or member donations into a Funding-for-Governance pool, where each ADA donated grants quadratic voting credits on strategic decisions—capped per address to prevent dominance.
  • Why: Channels external support and aligns financial contributions with governance influence, while protecting against vote-buying.

7. Onboarding & Retention Airdrops​

  • What:
    • Welcome Airdrop: New members receive 100 $MAT vesting monthly over 6 months.
    • Mentorship Bounties: Experienced members claim Reputation Tokens by guiding newcomers, paid in small $MAT bounties.
  • Why: Accelerates early engagement, compensates mentors, and cements community bonds from day one.

Why These Changes Matter​

  1. Cultural Alignment – Elder tokens and advisory tiers embed indigenous governance customs on-chain.
  2. Fairness & Inclusion – Quadratic voting and one-person-one-token protect equality while valuing deep engagement.
  3. Transparency & Accountability – On-chain surplus returns, milestone vesting, and KPI oracles ensure every token tells a story.
  4. Economic Sustainability – Dual pools, protocol fees, and donation-for-vote mechanisms diversify the treasury’s income streams.

Implementing these refinements will transform Matou DAO into a truly tribal-centric, resilient, and equitable governance system—one that honours Māori and Pasifika principles while leveraging cutting-edge on-chain mechanics.