• Security
    • How does a validator-level quadratic voting system make it more difficult to execute a security attack on the DAO? It makes it very expensive. An attacker would have to spin up a new validator large enough to knock an existing validator out of the pool. With a small validator pool and high delegation, this would be a multi-million dollar undertaking for each vote an attacker wanted to buy. The system is designed to make the cost of an attack greater than the potential reward. Additionally, doing so will be a very noisy action in a highly monitored environment. This gives PNF a chance to block any attack using its own validators and treasury.
    • What role do the foundation's validators play as a security measure? The foundation's nine validators act as a safety brake. If a malicious proposal were to pass, the foundation could dump its treasury into these validators, increasing their weight and providing a buffer to stop a malicious vote.
    • How does the system defend against "bad proposals" versus "malicious attacks"? The system is not designed to prevent people from voting for a bad idea; that's just a part of democracy. The goal is to prevent malicious exploitation of the system's design. The foundation's validators and the quadratic voting model are a defense against attacks, but a popular bad idea might still pass.
    • Which validators can vote? Only validators in the verified slots can vote. Currently, there are 15 slots, and for a new validator to gain voting access, it must replace an existing one by staking more power.
    • What happens if an attack is detected? PNF extensively monitors the current validators. If an attack begins, it will be a very visible and noisy event that alerts PNF. The Foundation holds 500,000,000 $POKT tokens and operates 9 validators, allowing it to intervene if necessary. It takes only one block for a new validator to replace an existing one, which enables the Foundation to defend in real time.
  • Caucuses

    • What is the primary purpose of the caucus system in this governance model? The purpose is to give a voice to specific types of actors in the ecosystem who might not have a voice otherwise. Caucuses, each with a dedicated validator operated by PNF, would represent special interests like node runners, stakers, or builders, and allow them to collectively decide how their validator votes.

    • How do caucuses serve as a replacement for the old pre-proposal system? A person seeking a grant or proposing an idea can approach the relevant caucus first. If the caucus, which consists of people deeply involved in that specific domain, agrees the proposal is valid, they will work with the proposer to refine it. The caucus can then put its weight behind the proposal, acting as a qualified reviewer and increasing its chances of success.

    • How does members of caucuses determine the vote of their validator?

      Each caucus will have a dedicated forum for discussion where members can post topics and debate proposals. This will lead to a vote to determine the caucus's official position.

      Within each caucus, the voting will operate on a one person, one vote basis. Each member will receive a unique NFT to cast their ballot. We plan to use a user-friendly, ready-made solution like Snapshot, which is compatible with popular wallets like MetaMask. This ensures a fair and straightforward voting process that anyone can participate in.

      Because the validator is operated by PNF, the final vote will be at PNF’s discretion. PNF reserves the right to use its voting power to block malicious proposals.

    • How can individuals become a caucus member? Individuals can become a caucus member through an annual two-step process: nomination and a vote by validators.

      • Nominate Yourself: First, the PNF will hold a yearly review and discussion to identify and establish a series of caucuses. Once these caucuses are determined, community members who wish to participate must nominate themselves to be part of a specific caucus.
      • Validator Vote: After the nomination period, validators will vote on the individual nominees. Any individual who receives enough votes to reach a quorum will be officially appointed as a member of the caucus they nominated for.

      To incentivize active participation and prevent any single caucus from becoming overcrowded, a small compensation will be allocated to each one. This total amount will be split equally among all individuals who are members of that caucus. The purpose of this compensation structure is twofold: it provides a tangible reward for the time and effort invested by members, and it strategically encourages individuals to join less popular caucuses, as a smaller membership will result in a higher compensation per person. This mechanism ensures that all caucuses, regardless of their initial popularity, have the necessary resources and motivation to function effectively.