IIP-43

IMPLEMENTED

Simple Summary

This IIP outlines the introduction of Governance V3, a refined governance structure aiming to enhance decision-making efficiency, transparency, and alignment with VARA requirements. It proposes a shift from the sub-council system to a committee-based approach, the enhancement of the Illuvium Main Council (IMC), and the introduction of the Governance Improvement Processes (GIPs) and Governance Configuration Change Proposals (GCCPs).

Overview

Governance V3 introduces committees comprising industry experts and an Illuvium Labs team member, replacing the sub-councils to provide nuanced, specialised advice to the IMC. The IMC, composed of elected and representative members, remains central in decision-making. The community council is pivotal in vetting and forwarding Illuvium Improvement proposals(IIPs) and Illuvium Configuration Change Proposals(ICCPs), ensuring community participation. GIPs/GCCPs introduce a combined voting process involving the IMC and the Community Council where governance-specific changes can be debated and voted on, where a supermajority of 7 out of 10 votes is required for approval.

Rationale

The move to replace sub-councils with committees addresses the inefficiencies identified in Governance V2, including complexity and coordination issues. Committees promise agility and informed decision-making with their streamlined structure and focus on expertise. The Community Council ensures the community's voice is represented, and introducing GIPs/GCCPs establishes a balanced and robust mechanism for governance-related proposals.

Governance V3

Objective

Governance V3 is designed to enhance the governance structure of Illuvium, addressing shortcomings identified in Governance V2. This iteration modifies council structures, primarily by replacing sub-councils with committees. This change improves efficiency and aligns Illuvium's governance structures with VARA requirements while ensuring decentralisation and transparency.

Illuvium Main Council (IMC)

Structure

The IMC remains the main governing body within the ecosystem. It comprises four members elected by ILV token holders and one Illuvium Labs representative. The IMC is entrusted with deliberating and voting on proposals presented by token holders.

Functionality

IMC members scrutinise and decide on token holder proposals. They will seek expert insights from specialised committees to ensure informed decisions that align with the overall objectives and legal frameworks of the Illuvium ecosystem.

Committees

Formation

Four specialised committees will be established: Marketing, Strategy, Game Design, and Operations. Each committee will comprise three industry experts and a team member from Illuvium Labs.

Appointment

Committee members will be nominated by ILV token holders and appointed by the IMC. Appointments will be based on individuals’ expertise, knowledge, and vested interest in the project. In light of any possible confidential information to be made accessible to committee members, they must execute a non-disclosure agreement (NDA) shortly after their appointment.

Roles

Each committee offers expert advice to the IMC, ensuring that decisions are based on comprehensive insights and thorough assessments.

Community Council

Composition

The community council will comprise five community members. ILV token holders will elect these members to represent the community's interests and perspectives. One member will be appointed to the head community position among the elected members. This individual will act as the primary liaison between the community council and the IMC, ensuring a direct line of communication and representation at IMC meetings.

Responsibilities

The Community Council's key role is to vet proposals and forward them to the IMC, ensuring community perspectives are integrated into decision-making. They are tasked with importing approved proposals into GitHub for voting and are mandated to vote on GIPs/GCCPs, a new proposal standard introduced to address specific governance issues. Their role ensures that community voices are effectively communicated and considered at higher decision-making levels.

The member appointed to the head community position is responsible for attending IMC meetings to articulate and advocate for the community council’s perspectives on proposals. This ensures that the voices and concerns of the community are heard and given due consideration in the final decision-making process.

Deprecation of Sub-Councils and Integration of Committees in Governance V3

Background

In the transition from Governance V2 to V3 within the Illuvium framework, a significant shift is observed in the structural design of governance. The multi-tiered, sub-council-centric approach of V2 has been streamlined and optimised to a more agile and responsive committee-based structure in V3.

Issues with Sub-Councils

Sub-councils in V2 were meant to decentralise the decision-making process and cater to specific functional areas like Game, Marketing, Strategy, and Community. However, certain inefficiencies and challenges emerged:

Complexity

The complex structure led to potential delays and bureaucratic hurdles in decision-making.

Coordination Issues

There were difficulties in achieving seamless coordination between all levels of councils and the community, leading to decision-making silos.

Expertise Gaps

There were concerns about the depth of expertise within sub-councils, impacting the quality of decisions.

Scalability Concerns

The structure wasn’t as scalable and adaptable, especially with the impending Open Beta launch and future expansions.

Transition to Committees

Governance V3 introduces Committees aiming to alleviate the issues identified with sub-councils. Committees are streamlined, focused groups expected to offer more agility, expertise, and efficiency.

Critical Attributes of Committees:

Simplified Structure

Committees have a more straightforward structure, reducing administrative layers and accelerating decision-making.

Expertise Focus

Each committee comprises industry experts and an Illuvium team member, ensuring a blend of external expertise and internal insights.

Flexibility

The committee structure is more adaptable, allowing for swift modifications in response to emerging needs and challenges.

Enhanced Coordination

Committees are designed to align closely with the Illuvinati Main Council (IMC), ensuring cohesive and informed decision-making.

The shift from sub-councils to committees is a strategic move to optimise Illuvium’s governance structure. By focusing on agility, expertise, and efficiency, committees are expected to enhance the decision-making process, ensuring that it is responsive, informed, and aligned with the dynamic needs of the Illuvium ecosystem, especially as it gears towards the Open Beta launch and beyond.

Role of Committees

Game Design Committee

Role: The Game Design Committee provides expert advice on game development and design aspects. Their insights aim to ensure an optimal blend of creativity, technology, and user engagement within Illuvium's gaming landscape.

Specific Responsibilities:

Gameplay Mechanics Advice: Offering expertise in refining gameplay mechanics for enhanced player engagement and balance.

Innovation Insights: Providing advice on integrating innovative technologies and creative elements to elevate the gaming experience.

User Experience Suggestions: Recommending enhancements to the game’s interface and overall user experience to ensure intuitiveness and immersion.

Quality Assurance Guidance: Advising on practical testing and quality assurance processes to ensure a bug-free and smooth gaming experience.

Marketing Committee

Role: The Marketing Committee provides strategic advice on promoting Illuvium to enhance visibility, brand awareness, and user engagement. They utilise their expertise to offer insights on effective marketing strategies and initiatives.

Specific Responsibilities:

Brand Promotion Insights: Advising strategies to elevate the Illuvium brand through targeted campaigns and promotional activities.

Community Engagement Recommendations: Offering insights to enhance engagement with the gaming community via various platforms.

Analytics and Data-Driven Advice: Providing recommendations based on data analytics to optimise marketing strategies.

Content Strategy Suggestions: Advising on developing compelling content to attract and educate audiences.

Operations Committee (Legal and Finance)

Role: The Operations Committee advises on legal and financial matters, ensuring Illuvium operates within legal norms and maintains financial health. Their advice supports informed decision-making and risk mitigation.

Specific Responsibilities:

Legal Compliance Guidance: Advising adherence to legal standards and regulations to ensure Illuvium’s operational compliance.

Financial Management Advice: Offering insights on effective financial planning and management for fiscal sustainability.

Risk Mitigation Recommendations: Providing advice on identifying and mitigating potential legal and financial risks.

Operational Efficiency Insights: Enhancing operational efficiency through optimised processes and cost management.

Strategy Committee

Role: The Strategy Committee's role is to provide expert advice on the long-term strategic direction of Illuvium. They focus on offering insights to ensure Illuvium's adaptability and competitiveness in the dynamic gaming industry.

Specific Responsibilities:

Strategic Planning Advice: Offering insights on developing and refining Illuvium’s long-term strategic objectives and plans.

Competitive Analysis Recommendations: Providing advice on analysing and navigating the competitive landscape effectively.

Innovation Insights: Recommending opportunities for innovation and differentiation in the market.

Sustainability Suggestions: Advising on integrating sustainability and adaptability elements in Illuvium’s strategic planning.

Each committee specialises in offering nuanced, expert advice in their respective domains, contributing to informed, well-rounded decision-making within Illuvium's governance structure.

Proposal Process for Illuvium Governance

Proposal Forum

Drafting: ILV Holders are invited to initiate proposals, ensuring they are comprehensive and detail-oriented. A "sponsor" is assigned to each proposal, preserving its foundational intent.

Discussion: The proposals are unveiled on the Discord forum, eliciting community insights, critiques, and suggestions for refinement.

Community Voting: A proposal requires a minimum of 25 upvotes to transition to the Community Council's scrutiny, ensuring that only well-considered and supported proposals advance.

Outcome: This initial phase underscores the democratic ethos, wherein community sentiments are pivotal in shaping the proposal’s journey.

Community Council

Review: Proposals undergo a rigorous evaluation by the Community Council, examining their alignment with Illuvium's vision and feasibility. Within 3 days, approved proposals are formatted and listed on GitHub for IMC consideration.

Voting: Transparency is pivotal; IIPs and ICCPs will need at least 3 affirmative votes to proceed to IMC. For GIPs/GCCPs, both the Community Council and IMC are involved in the voting, requiring a supermajority of 7 out of 10 votes across both councils for approval.

Outcome: A comprehensive vetting mechanism, enriched by the sponsor’s oversight and the integration of GIPs/GCCPs, ensures that only aligned, substantial, and broadly supported proposals navigate through the evaluation channels.

Committees

Evaluation: Experts within committees provide a detailed analysis, examining the multifaceted aspects of the proposals.

Advisory Role: Committees enrich the IMC’s decision-making with nuanced insights and recommendations.

Outcome: The involvement of committees underscores the commitment to informed, expert-backed decision-making.

Illuvium Main Council (IMC)

Deliberation: Armed with insights from committees and the Community Council, the IMC delves into thorough discussions.

Final Voting: IIPs and ICCPs can be voted on as Approved, Rejected, or Revisions Needed. Protocols for revision and rejection are clearly defined, ensuring a balanced and thorough evaluation. GIPs/GCCPs undergo the special voting process involving the IMC and Community Council, seeking broad consensus.

Outcome: The decision-making matrix is balanced and multifaceted, ensuring adopted proposals resonate with the collective wisdom and are in Illuvium’s best interest.

Illuvium Team

Implementation Planning: The team crafts a strategic plan, ensuring the seamless integration of approved proposals into the Illuvium ecosystem focusing on monitoring their impact.

Outcome: This final stage ensures that the enacted proposals are implemented efficiently and conducive to the progressive evolution of the Illuvium ecosystem.

Proposal Timelines

Stage 1 - Governance Forum Stage: Proposals have 14 days to secure 25 upvotes. Stage 2 - Community Council Vote: A 3-day window is allocated for voting. Stage 3 - Sponsor Review Stage: The sponsor has three days to review. Stage 4 - Illuvinati Main Council Vote: IMC votes over three days.

Acceleration Protocols

In Stage 1, accumulating 25 upvotes before the 14-day mark immediately triggers the 3-day voting window for Stage 2. In Stage 2, if the council approves unanimously, the proposal directly advances to Stage 3. For Stage 3, a sponsor response propels the proposal into Stage 4 without further delay.

Remuneration Structure

Illuvium Main Council (IMC)

Compensation: IMC members are remunerated with a monthly stipend of USD 5,000, acknowledging the skills, expertise, and commitment they bring to the table and the added responsibilities and risks associated with VARA regulations.

Nature of Engagement: Members of the IMC, while not bound by fixed working hours, are anticipated to be active and diligent in evaluating all proposals during the epoch, as well as proposing and ideating their proposals to enhance the DAO and the project whenever necessary. It involves strategic decision-making, oversight, and active engagement with the Illuvium community and its operational facets.

Compliance and Identity Verification: IMC members are mandated to comply with VARA regulations. This involves stringent adherence to rules and standards outlined under VARA, ensuring the integrity and legitimacy of governance. Proof of identity and residency is required, aligning with Illuvium's governance's transparency, authenticity, and security protocols.

Community Council Members

Compensation: Council members are paid a $1,500 monthly stipend for their part-time contribution. The head community council member receives $2,250 monthly due to additional responsibilities.

Hours of Engagement: Members dedicate 10-15 hours weekly to their roles. The head community member may invest extra time to liaise with the IMC effectively.

Committee Members

Compensation: Committee members are not financially remunerated. Their voluntary participation stems from their expertise, experience, and interest in Illuvium’s success.

Motivation: The reward for committee members lies in their influential role in shaping the protocol’s direction, leveraging their expertise to make informed, impactful contributions. Their compensation is implicitly tied to the protocol’s success, where their advice and insights lead to decisions that elevate Illuvium’s standing and value.

Council Requirements

All IMC and Community Council members must hold or stake at least one (1) $ILV.

Each council shall meet at least twice (2) a month and be responsible for taking minutes of the meeting in their respective council.

Once elected, council members must sign an NDA prepared by the Illuvium Legal team. Signing an NDA is a requirement to serve on any Illuvium council to ensure security and confidentiality while enabling access to relevant information to serve the DAO in the elected position effectively. Failure to sign the NDA would disqualify the individual from service, and the candidate receiving the next highest number of votes would then be selected.

Official Meetings & Communication Plans

Each council has the power to require a high-level team member to attend any meeting that may need input from a department relevant to the matter to be discussed in said meeting. The GCM (Governance Community Manager) shall facilitate scheduling to ensure the attendance of the requested team member.

One council member would be appointed to take notes on the meetings to assist the GCM in their process. Once the respective council finalises and approves the notes, they will be published in the #council-chambers in Illuvium’s Discord. This is a temporary measure until our official governance on the website is complete.

For community questions to councils, a pinned form will exist to submit queries. The GCM will monitor these questions and will be responsible for bringing topics to the relevant councils.

Length of an epoch

Councils will now operate in 9-month epochs, an increase from the previous 6-month duration. The extended term addresses the limitations of the shorter cycle, offering council members additional time for effective onboarding, strategic implementation, and community engagement. The 6-month epoch was often constrained, with initial phases focused on transitions and the latter on elections. A 9-month term ensures ample opportunity for deeper project engagement, long-term planning, and strengthened community bonds whilst maintaining the flexibility for future adjustments per the ecosystem’s evolving needs.

Nomination Process

Candidate Assessment

Nominees complete a council-specific questionnaire accessible to the community for transparent candidate evaluation.

Election Timeline (Approximate)

44 Days to Epoch End: IMC/committee nominations open for 10 days. 34 Days to Epoch End: 3-day IMC voting. 31 Days to Epoch End: Newly elected IMC appoints committees within a week. 24 Days to Epoch End: 10-day community council nominations. 14 Days to Epoch End: 3-5 day community council voting. 9 Days to Epoch End: Preparations and onboarding for the new epoch begin.

Example: An epoch ending January 1 would have IMC nominations from November 18-28 and conclude community council voting by December 17.

IMC Replacement Protocol

Post community council selection, the IMC outlines a succession plan for prompt replacement if a member steps down or is replaced.

Additional Considerations

Performance Review and Adjustments

Regular reviews of the remuneration structure to ensure it remains competitive, fair, and aligned with the responsibilities and contributions of each role. Consideration for adjustments in remuneration in line with the protocol’s growth, inflationary trends, and evolving market conditions to attract and retain top talent.

Council members will participate in self and peer evaluations twice during the epoch: once at the 4-month interval and again at the 8-month interval by IIP-35.

Transparency

A detailed, transparent disclosure of remuneration structures to the community to ensure clarity, fairness, and accountability.