NodeZero/GOVERNANCE.md

# GOVERNANCE.md
# NodeZero Funchal - Governance

## Overview
The governance layer manages the decentralized operations of NodeZero Funchal,
combining Bitcoin governance with community-driven mesh services — all identity
and attestation handled via Nostr relays.

## Governance Model
### Community Staking
- Residents stake tokens (NFTZ) to validate nodes and vote
- Voting weight proportional to stake and residency duration
- Minimum stake: 100 NFTZ per voting right
- Lock-up period: 30 days

### DAO Council
- 13 elected council members
- 2-year terms, max 2 consecutive terms
- Responsibilities: node deployment, treasury, service fees, disputes

### Mesh Services Board
- 5 technical experts elected for infrastructure governance
- Protocol updates, network tuning, hardware standards, security

## Identity & Relays
### Nostr Integration
- **DID Resolution:** Decentralized Identifiers via Nostr DIDs (pubkeys)
- **Profile Data:** All service profiles stored on Nostr relays
- **Attestations:** Peer endorsements and credentials verified through Nostr events
- **Relay Redundancy:** Multiple Nostr relins with mesh sync for offline capability

## Service Layer
### Mesh Services
| Service | Protocol | Port |
|-----|--|
| Ride Dispatch | MQTT | 1883 |
| Housing Bookings | gRPC | 50051 |
| Delivery Routing | gRPC | 50052 |
| Commerce Registry | HTTP/3 | 8080 |
| Workforce Platform | gRPC | 50053 |
| Credential Store | gRPC | 50054 |
| Treasury | RPC | 8332 |
| Governance | gRPC | 50055 |

### Service Mesh
- Service discovery via mesh gossip
- Circuit breakers for fault isolation
- Rate limiting per service
- Health monitoring with auto-restart
- Configuration management

## Treasury
### BTC Treasury
- Primary treasury on Bitcoin
- Lightning treasury for operations
- Stablecoin reserve for volatility hedging
- Allocation: Hardware 40%, Operations 25%, Incentives 15%, Expansion 10%, Contingency 10%

### Treasury Management
- Multi-signature wallet for major decisions
- Automated monthly distributions
- Community proposal system
- Nostr-anchored treasury records

## Voting Mechanisms
### On-Chain Voting
- **Method:** Bitcoin via Nostr relay chains
- Quorum: 51% of total stake
- Pass threshold: >=60% affirmative
- Min votes: 1000 participants

### Off-Chain Voting
- Method: Mesh-based poll (for operational decisions)

### Proposal Types
| Type | Scope | Quorum | Vote Time |
|------|------|
| Standard | Service parameters | 30% | 7 days |
| Important | Node deployment, treasury | 51% | 14 days |
| Core | Protocol changes, >EUR 100K | 60% | 30 days |

## Financial Flow
### Income
1. Node validation fees
2. Service mesh usage fees
3. Merchant transaction fees (0.1%)
4. Tourist mesh passes
5. External grants

### Expenditure
1. Hardware procurement (40%)
2. Operations & maintenance (25%)
3. Community incentives (15%)
4. Expansion fund (10%)
5. Contingency (10%)

## Dispute Resolution
### Three Levels
1. Mediation (Mesh Council) - 7 days, free
2. Arbitration (DAO Council) - 14 days, 10 NFTZ fee
3. On-chain Arbitration - 30 days, final binding

## Evolution Path
| Phase | Model | Budget |
|-------|--|
| Phase 1 | Council-led | EUR 500K |
| Phase 2 | DAO transition | EUR 2M |
| Phase 3 | Full DAO | Nostr-relay anchored Bitcoin | EUR 10M |
| Phase 4 | Autonomous | EUR 25M+ |

## Key Points
- **Identity:** Nostr-registered identities for all residents and services
- **Credentials:** Peer-verified, relay-anchored credentials via NIP-xx standards
- **Records:** All governance records relayed via Nostr relays on Bitcoin mesh
- **Token:** NFTZ token minting and burns on Bitcoin
- **Treasury:** Full Bitcoin treasury operational with Nostr event anchoring