# Governance Model # NodeZero Funchal Decentralized Governance --- ## 1. Governance Overview NodeZero Funchal operates under a **hybrid governance model** combining on-chain Bitcoin-based mechanisms with local community representation. The model scales from the neighborhood level up to the archipelago level. --- ## 2. Governance Layers ### 2.1 Community Staking Layer - **Resident Staking:** Stake NFTZ tokens to validate nodes - **Voting Weight:** Proportional to stake + residency duration - **Minimum Stake:** 100 NFTZ per voting right - **Lock-up Period:** 30 days to prevent flash votes ### 2.2 DAO Council - **Council Size:** 13 members - **Terms:** 2-year terms, max 2 consecutive terms - **Election:** Annual community election - **Duties:** - Approve node deployments - Manage treasury allocation - Set mesh service fees - Adjudicate disputes ### 2.3 Mesh Services Board - **Role:** Technical governance of mesh infrastructure - **Composition:** 5 elected technical experts - **Responsibilities:** - Protocol updates and upgrades - Network参数 tuning - Hardware standards - Security incidents response ### 2.4 Treasury Management - **Bitcoin Treasury:** Primary treasury on Bitcoin - **Lightning Treasury:** For operational expenses - **Stablecoin Reserve:** Hedging against BTC volatility - **Spending Categories:** - Hardware procurement: 40% - Operations & maintenance: 25% - Community incentives: 15% - Expansion fund: 10% - Contingency: 10% --- ## 3. Voting Mechanisms ### 3.1 On-Chain Voting - **Method:** Bitcoin via Ordinals or Stacks - **Quorum:** 51% of total stake - **Pass Threshold:** >=60% affirmative - **Min Votes:** 1000 participants ### 3.2 Off-Chain Voting - **Method:** Mesh-based poll (for operational decisions) - **Uses:** Minor parameter adjustments, service fee updates ### 3.3 Proposal Types | Type | Scope | Quorum | Vote Time | |------|-------|--------|------------| | Standard | Service parameters | 30% | 7 days | | Important | Node deployment, treasury use | 51% | 14 days | | Core | Protocol changes, treasury >EUR 100K | 60% | 30 days | --- ## 4. Decision Areas ### 4.1 Infrastructure Decisions - Node placement and density - Mesh protocol upgrades - Hardware procurement standards - Internet connectivity choices ### 4.2 Service Decisions - Ride-sharing pricing rules - Housing platform parameters - Delivery network expansion - Business onboarding criteria - Job board policies ### 4.3 Economic Decisions - NFTZ token minting and burns - Treasury investment strategy - Service fee setting - Community incentive programs ### 4.4 Community Decisions - Resident onboarding criteria - Credential issuance standards - Dispute resolution procedures - Community fund allocation --- ## 5. Treasury Operations ``` +---------+ | BTC |<-[On-chain BTC Treasury] | Treasury| [~5 BTC] +----+----+ | +--[Stablecoin Reserve] +--[Lightning Operating] | +---------+ | | Operations | +--[Income Flow] | v +--------------------+---------+ | Node Validators | Service | | (staking rewards)| Providers| +--------------------+---------+ +---------+ | Workers, | | Merchants| | Residents| +---------+ ``` ### Treasury Income Sources 1. Node validation fees 2. Service mesh usage fees 3. Merchant transaction fees (0.1%) 4. Tourism mesh passes 5. External grants and partnerships ### Treasury Expenditure Categories | Category | % of Budget | Description | |----------|-------------|-------------| | Hardware | 40% | Nodes, APs, gateways, solar, UPS | | Operations | 25% | Power, maintenance, staff | | Incentives | 15% | Staking rewards, user subsidies | | Expansion | 10% | Phase 2-4 rollout | | Contingency | 10% | Reserve for unexpected events | --- ## 6. Dispute Resolution ### Level 1: Mediation (Mesh Council) - Resolved within 7 days - Free for residents - Council mediators rotate monthly ### Level 2: Arbitration (DAO Council) - Resolved within 14 days - Arbitration fee: 10 NFTZ - Council voting required ### Level 3: On-Chain Arbitration - Final arbitration - Resolved within 30 days - Binding smart contract execution - No arbitration fee for amounts