SZN-0 Governance Overview

SZN-0 Release: Out-of-the-Box Governance Optimized for Modularity and Long-Term Games

Sep 23, 2021

Originally posted on Medium:

SZN-0 Release: Out-of-the-Box Governance Optimized for Modularity and Long-Term Gamesdefault proposal process

SZNS provides a new standard for decentralized governance of NFTs called Albums. The framework packages a robust and lightweight toolkit for communities to securely and democratically manage digital assets.While some DAOs (like PleasrDAO) have created systems to perform arbitrary actions, thus far, out-of-the-box governance of fractionalized NFTs only offers a community-determined buyout price for the underlying asset(s). SZNS Albums expand on this to give Album token holders the opportunity to make any arbitrary function in regard to their NFTs and governance token.

Decentralized governance is not easy nor solved by anyone in the ecosystem. The SZNS team is standing on the shoulders of giants before us, and attempt to take as many lessons learned as possible from the frameworks of the past to offer an out-of-the-box DAO toolkit that grants sufficient structure to ensure DAO asset security as well as governance flexibility to offer a model that Albums can use to fit their distinct use-cases.Our initial launch offers a standard interface for two types of proposals, Album Buyouts and NFT Tribute. Both of these proposal types involve significant value decisions, and thus the default framework for these decisions leans on a two week process to ensure community alignment and deflect inaccurate or malicious action. The balance between speed and security is a primary problem for the SZNS governance framework to solve for, and we will look to improve upon this model in future iterations.One of the novel mechanisms that SZNS introduces and explores in decentralized governance is through properly-incentivized arbitrators. Any DAO under the SZNS protocol using its governance framework has the ability to lean on sznsDAO as an arbitrator who can both expedite proposals and shut down malicious proposals. The sznsDAO is motivated to ensure that DAOs are continuing to leverage the SZNS framework to focus on building their communities rather than technical implementations of their DAO stack. We look forward to the continued development of this model.

The SZN-0 beta release of the SZNS protocol standardizes the process for two high risk decisions: Album Buyouts and NFT Tribute.Album Buyouts occur when an entity wants to purchase the underlying assets associated with an Album. This process is extremely important, and is likely the highest value transaction that an Album community will need to make a decision on.The other standard proposal involves a person offering an NFT as tribute to the Album DAO to both increase the value of the Album and receive an appropriate number of tokens in exchange. Token holders will make a decision to mint new Album tokens in return for the new NFT(s).Albums also offer a path for creating any arbitrary proposals to manage the NFTs, Album tokens, or other resources owned by the DAO contract. We will provide a follow up article diving into the details of this process!

In just a few weeks we will launch with a select list of initial partners who will be forming their own communities around some exciting NFTs.Starting with a whitelist of Albums on the SZNS protocol will allow the sznsDAO to give special service for these young and exciting new communities and serve as the key arbitrator if any issues arise with Album proposals.We encourage everyone to join those communities and explore community NFT governance by participating in their Album token sales. More details about these launch partners are coming soon! 👀

The SZNS protocol is built to be continually modified and improved upon. We are thrilled to be unlocking a creative new system of community ownership for NFTs and look forward to growing this frontier with everyone.If you’d like to learn more, please visit our Gitbooks, and get involved with the community on Discord!