Governance for the Superalgos project is about how the project will be governed. While the project was founded by the vision of a few people, the intent is for the project to grow into a decentralized but self-sustainable global community that is capable of governing itself. This is a massive topic and requires substantial developement outside of the Superalgo smart contracts. Yet, these smart contracts hold a specific role within this community and so their inherent participation should be examined.
Scope of Participation
The base contract is for the ERC20 token called an Algo. The algo (symbol ALGO) is the economic foundation of the Superalgos project and its native medium of exchange used by both humans and machines for everything from powering financial life, contribution incentivization and compensation, to fees for automated trading services and access to data products. In other words, just the base ERC20 contract alone holds a massive participating role as the economic ledger of the Superalgos project. As a reminder, the contract doesn't simply mint the tokens, but stores the balance of every Ethereum network address that holds Algo as well as providing transactional methods such as transferring, checking account balances, etc.
The next two contracts, the AlgoPool and AlgoMiner play the role in segmenting the project economy for specific purposes and creating a methods of distributing Algo to participants that contribte to the ecosystem. Specifically, AlgoPool contracts and deployed to distribute tokens for the purpose of funding, competition prizes, software development and general project development. These general pools are broken down into specifc modules that are developed, managed and maintained by individuals or groups. These individuals/groups "mine" tokens via a Proof of Worth mechanism. "Mining" shouldn't be confused with other forms of hardware/calculation based mining such as Proof of work. Rather, mining by Proof of Worth is the amount of time and effort provided by the individual/group to the project.
The final contract is the AlgoFees that focuses on distributing all fees collected within the ecosystem back out to all contributors based on their category of contribution.
The Governance of Humans and Machines
Smart contracts enable the automated fulfillment of transactions based on a set of conditions or rules being met; e.g. proper address permissions to execute a given function or a token balance equal to or greater than the requested amount to transfer. These rules are enforced by the computers/machines that process the transactions and for the most part enable or limit how humans can transact within the given ruleset. Yet, the machines are limited to merely handling the transactions based on said rules and there are many situations and scenarios outside of these transactions that require their own rules — rules by which human participants follow. Creating, managing and enforcing these rules and conditions for how humans and machines will interact within this project is what governance is all about.
One method of dealing with the manifest complexity of governance within this project is by segmenting the rules and conditions into smaller, more manageable chunks.
The first layer of segmentation will be split into three main areas of focus:
- Machine-centric governance: Rules and conditions that only apply to machines.
- Human-centric governance: Rules and conditions that only apply to humans.
- Collective governance: Rules and conditions that only apply to both humans and machines and how they interact.
Based on these three areas of focus, we can make a basis for beginning the process of developing governance.
In the area of governance, machines are simple as they must follow the rules and conditions provided them. It's true that humans can find clever ways to induce machines to behave in undesireable ways, but that challenge will simply remain an awareness in this section.
For the most part, the governance of machines is the smart contracts themselves. They hold the business logic by which machines should allow or dissallow any given transaction.
One of the largest challenges in the governance of decetralized projects is the enforcement of rules. While machines are forced to act in a given logical manner based on the parameters passed, humans have the "freedom of choice" to act in manner that respects or disregards the rules (setting aside all notions of rationality). What this indicates is that humans need to be incentivized to operate in a manner beneficial to all other participants, disincentived from acting in manners harmful to all other participants, and then as best as possible, restricted or hindered from causing harm should they choose to ignore all forms of incentivization and disincentivaztion. The task of accomplishing, let alone beginning, the development of a governance system to handle these parameters is far outside the scope of developing these Smart Contracts at the time of this authorship, but is a reality that must be kept at the forefront of thought at all times.
Collective governance can be focused in the areas of interaction between humans and machines. This can involve, but is not limited to, generating guidelines for how and when contracts will be deployed and the security precautions humans should follow when interacting with machines and contracts.