Creation of Sub DAO, SVT Bank Trust, and Appointment of SVP Trustee for BAQNBK

Proposal Summary: Creation of Sub DAO, SVT Bank Trust, and Appointment of SVP Trustee for BAQNBK

This proposal outlines the creation of a Sub DAO, the establishment of the SVT Bank Trust, and the appointment of the SVP Trustee framework for the BAQNBK platform. The key objective is to utilize 90% of the minted tokens from the main DAO to fund a state bank governed by token holders. The overall goal is to ensure decentralized financial management, strategic growth, and transparent governance in this state banking model.

1. Establishing the Sub DAO

Role of the Sub DAO:

The Sub DAO will serve as a semi-autonomous entity within the main DAO ecosystem, managing financial assets, governance tokens, and key decision-making processes for the state bank.

• Financial Management: The Sub DAO will manage the allocation of funds, utilizing 90% of the minted tokens for the state bank's operations and investments.
• Governance and Voting: Token holders will participate in decision-making through voting on strategic actions, investments, and financial planning.
• Oversight of SVT Bank Trust: The Sub DAO will monitor and regulate the activities of the SVT Bank Trust to ensure transparency and effective use of the token supply.

Steps to Establish the Sub DAO:

1. Smart Contract Deployment: Develop a Sub DAO smart contract defining governance roles and structures, using platforms like Aragon or DAOstack.
2. Linking to the Main DAO: Ensure connectivity between the Sub DAO and the main DAO to maintain strategic oversight and governance alignment.
3. Token Governance: Use the DAO's governance tokens (UWT) for voting on key financial decisions, including fund management within the state bank.

2. Creating the SVT Bank Trust

The SVT Bank Trust will function as the financial backbone of the Sub DAO, responsible for managing 90% of the token supply and providing decentralized financial services. The Trust will operate similarly to a state bank, supporting governance, investments, and liquidity management.

Objectives of the SVT Bank Trust:

• Token Management: The Trust will allocate 90% of the total token supply to support projects, partnerships, and investments that grow the token's value.
• Ecosystem Growth: Funds from the SVT Bank Trust will fuel ecosystem projects, including the creation of new Sub DAOs, governance tools, and decentralized applications (dApps).
• Financial Services: The Trust will offer staking, yield farming, and liquidity provision, providing value and returns to token holders.
• Liquidity Management: The Trust will ensure that the token maintains sufficient liquidity on decentralized exchanges (DEXs), stabilizing token value and market availability.

Key Steps for Implementation:

1. Formation of the SVT Bank Trust: Draft a legal and smart contract-based framework to formalize the Trust and its governance structure.
2. Token Transfer: Transfer 90% of the minted UWT tokens from the main DAO's treasury into the SVT Bank Trust.
3. Tokenomics Strategy: Establish a tokenomics plan to manage and allocate the token supply effectively. This includes creating staking rewards, liquidity pools, and future investment opportunities.

3. Appointing the SVP Trustee

The SVP Trustee will play a central role in managing the SVT Bank Trust by overseeing the allocation of assets, ensuring compliance with governance rules, and maintaining the financial integrity of the DAO ecosystem.

Responsibilities of the SVP Trustee:

• Manage Trust Assets: The Trustee will oversee the allocation of funds, ensuring alignment with the DAO's mission and strategic objectives.
• Compliance and Regulation: The SVP Trustee will ensure the Trust operates under the appropriate legal and decentralized finance (DeFi) regulations, following the governance framework set by the Sub DAO.
• Token Issuance and Management: The Trustee will control the issuance of new tokens, such as those for staking or liquidity purposes, ensuring token value is preserved.
• Transparency and Reporting: The Trustee will provide regular updates and transparent reporting on the state of the token treasury and the performance of the SVT Bank Trust to both the Sub DAO and the broader community.

Steps to Appoint the SVP Trustee:

1. Candidate Selection: Token holders within the Sub DAO will vote to elect a qualified candidate with experience in asset management, governance, and DeFi regulations.
2. Contractual Agreement: The role of the SVP Trustee will be formalized through a smart contract, outlining their duties and responsibilities, including the authority to manage and execute trust decisions.

Conclusion and Next Steps

The proposal seeks to establish a decentralized financial structure under the Sub DAO and SVT Bank Trust, which will be governed by the SVP Trustee. By allocating 90% of the tokens into a state bank model, the DAO will enhance its financial capacity and provide sustainable growth through decentralized financial services and community-driven governance.

Token holders are encouraged to participate in the upcoming vote to approve the Sub DAO's creation, the establishment of the SVT Bank Trust, and the appointment of the SVP Trustee to ensure the proposal's successful execution.

Voting Deadline:
Voting on this proposal will conclude in 3 days. Token holders are encouraged to review the proposal and cast their vote to shape the future financial framework of the DAO.

Published by:
The Governance Committee of BAQNBK.