---
title: GAIA (Governance for Artificial & Intelligence Augmented) Capital Allocation by Factory Labs for Allo.Capital
tags: Factory Labs
------
title: GAIA (Governance for Artificial & Intelligence Augmented) Capital Allocation by Factory Labs for Allo.Capital
tags: Factory Labs
---# GAIA
(Governance for Artificial & Intelligence Augmented) Capital Allocation


## Table of Contents
1. [Introduction](#introduction)
2. [DAO Design Summary](#dao-design-summary)
3. [Key Features](#key-features)
4. [The DAO Architecture](#the-dao-architecture)
5. [GAIA Pillars](#gaia-pillars)
- [Allo Predict](#allo-predict)
- [Allo Intelligence](#allo-intelligence)
- [Allo Commons](#allo-commons)
- [Allo Economy](#allo-economy)
6. [Where Next?](#where-next)

## Introduction

This document outlines our proposed design: GAIA (Governance for Artificial & Intelligence Augmented) Capital Allocation framework for Allo.Capital.

It is a governance system designed for the hybridisation of human and artificial intelligence through data, onchain decision-making and an infinite garden of mechanisms.

The design spans four pillars, which plug into and augment the Allo protocol, leveraging its capability for modular mechanisms, membership management and dynamic economic design.

## DAO Design Summary

Our governance design is built around four key pillars:

1. **Allo Predict**: Building a data commons with incentivised curation games, which lead to custom oracles for resolving prediction systems and performance-based capital unlocks.
- *Allo Data*: A curated structured data repository, which aggregates information from across the Allo network.
- *Allo Curate*: A framework for mechanisms that promote the interrogation of aggregated data.
- *Allo Oracle*: Custom DAO-based consensus oracles for settling prediction markets and prediction games.
- *Allo Market*: A staking-based prediction system for brokering Prediction Weighted Yield.

2. **Allo Intelligence**: Hybridising human and artificial intelligence by bringing onboarding, application, decision-making and evaluation flows into a place where they can be used for agent inference and training data.
- *Allo Apply*: An onboarding system, which forms the boundary to the system and feeds the Allo Registry.
- *Allo Review*: An identity and reputation-based system for facilitating decision-making.
- *Allo Eval*: A bicameral-style system, which evaluates across the Allo protocol producing evals and scores.
- *Allo Agents*: A hierarchical system of agents that facilitate and augment decision-making and outcomes across the DAO.
- *Allo Automation*: A system for progressively automating the protocol.

3. **Allo Commons**: Creating flexible but robust structures for participation and contribution.
- *Allo Domains*: A governance system for establishing knowledge domains for shaping the scope of Allo protocol.
- *Allo Operators*: A curated membership system for 'Operators' of the Allo protocol.
- *Allo Registry*: A system for governing and presenting the Allo Registry.sol contract and its profiles.
- *Allo Community*: A dialogic space and social consensus-driven space for directorial community inputs to the protocol.

4. **Allo Economy**: Ensuring sustainable operation through effective treasury and token management.
- *Allo Raise*: The core fundraising platform, strategy management system and economic input system.
- *Allo Treasury*: Allo's treasury management system, capitalisation programme and fee management system.
- *Allo Token*: Allo reserve token issuance mechanism, liquidity management systems, and economy management.

## Key Features

- **Progressive Automation**: Over time, we hand off control to Agents and oracles.
- **Layered Accountability**: Reviewers review, and reviewers get reviewed. Everything is evaluated.
- **Cybernetic Feedback Loops**: Mainstreaming evaluations into practice, synthesising expert and community decision-making.
- **Structured Knowledge**: Defining and bounding protocol scope with domains of knowledge.
- **Predict the Future**: Leverage staking-based prediction dynamics and data-informed decision-making to fund what matters in the future we want to see.
- **Bicameral Governance**: Capital-oriented stake-weighted governance pairs with meritocratic identity-based governance.
- **Sustainable Economics**: Protocol scaling and spend is directly linked to protocol revenue and asset staking.
- **Dials Over Dialogue**: A Meta Governance system that tunes system parameters, leaving deliberative governance to happen in domain-specific structures deeper into the DAO.

## The DAO Architecture


## The DAO Architecture

The GAIA DAO architecture illustrates how the Allo Protocol (comprising Registry, Anchor, and Allo contracts) provides the foundation for four main pillars — Allo Predict, Allo Intelligence, Allo Commons, and Allo Economy. These pillars are orchestrated by a top-level Meta Governance layer that integrates both stake-based and identity-based governance powers.

**Key Highlights of the Architecture:**

Meta Governance sits at the apex, enabling strategic decisions like fee adjustments, contract upgrades, and major expansions. This meta governance draws on two parallel governance streams:

- **Stake-Based Governance Power**: $rALLO facilitates classic one token, one vote-based governance dynamics. Capital should have its say, but it should have skin in the game, which is derived from making predictions. Votes are infrequent, high stakes and set the broad direction of the protocol.

- **Identity-Based Governance Power**: Role-based or profile-based authority tied to the Registry. Here governance power is non-fungible and identity-based, opening the door for individualised reputation-based governance. This ensures that the day-to-day governance of the protocol is directed by those with the most context (and facilitates agentic 'tap in' at a later date). Stake sets the bearings, whilst identities steer round the icebergs.

**Core Contracts:**
- Registry ensures identity management and membership records
- Anchor provides per-profile custody and execution capabilities
- Allo orchestrates the creation and funding of pools, enforcing fee structures and connecting to approved strategies

By splitting functionality into distinct pillars and submodules, GAIA balances modularity (each pillar can evolve independently) with unified governance (all changes flow through the meta governance framework).

To amplify feasibility, the framework is unlocked in three phases:

- **Phase One**: The core components, which provide the absolute basics required to govern the core contracts and unlock the first rounds of funding activity.

- **Phase Two**: Brings in the ability to shape the scope and scale of the protocol, amplifying the iterative and data-informed aspects of the protocol, ensuring that the mechanisms have "teeth", but they are used effectively.

- **Phase Three**: Unlocks the more advanced aspects of the protocol including the Market aspects of the protocol; here we establish core utility for the ALLO token. Phase Three is an open-ended development trajectory that progressively drives Allo towards automated outcomes, handing off control to Agents as they prove their efficacy.

The protocol is launched with Phase One, initiating the development of Phase Two. When Phase Two is launched, this initiates the development of Phase Three. By Phase Two, the protocol development should be open and using DeepFunding paradigms, and funded by Allo itself.

## GAIA Pillars

### Allo Predict

#### Introduction

This pillar is designed to build 'info finance' concepts into the Allo Protocol. Our goal is to use stake-based prediction dynamics to create an emergent economic system, promoting users to stake their $ALLO tokens. The system is designed to incentivise the creation of data and information that can inform both human decision and agent-based decision-making.
**Purpose:**
The **Allo Predict** pillar establishes a **data-driven foundation** for GAIA's funding decisions by focusing on **data aggregation**, **community curation**, and **oracle creation**. It enables the DAO to gather and refine key information about projects, outcomes, and market signals, ultimately feeding these insights into futarchy-style decision-making or AI-driven analysis.

**Submodules:**

1. **Allo Data**
- **Role:** Aggregates raw information from on-chain events, project milestones, treasury performance, and off-chain sources.
- **Mechanics:** Serves as a common "data lake" for Allo Curate and Allo Oracles, storing metrics like funding amounts, user growth, or milestone achievements.
- **Value:** Ensures that all pillars—particularly Allo Intelligence—can rely on accurate, up-to-date data for reviews, evaluations, and automated decisions.

2. **Allo Curate**
- **Role:** Uses token-curated registries (TCRs) or similar incentive mechanisms to rank or validate data, proposals, or project outcomes.
- **Mechanics:** Community members stake tokens or reputation to vouch for data accuracy or highlight top projects. Incorrect curation can be challenged, fostering quality control.
- **Value:** Helps surface high-quality information from the broader data pool, reducing noise and ensuring that key decisions are based on trustworthy signals.

3. **Allo Oracle**
- **Role:** Translates curated data into objective, on-chain "truths" used to settle conditional outcomes—e.g., milestone-based grants, futarchy predictions, or advanced allocation rules.
- **Mechanics:** Uses a DAO-based consensus oracle system to confirm real-world events or aggregated metrics.
- **Value:** Provides reliable signals to other pillars (like Allo Intelligence) and ensures that automated disbursements or incentive mechanisms remain tamper-resistant.

4. **Allo Market**
- **Role:** The primary application for market-oriented players to stake on projects they think are most likely to succeed, or onchain events.
- **Mechanics:** Has a 'base mechanism' for staking on outcomes presented by the Oracle system, with the opportunity to extend into more advanced prediction games.
- **Value:** A core utility for ALLO token and a prime driver of information creation on the protocol.

**Integration with the Core Protocol:**
- **Allo Predict** works hand in hand with **Allo** (the funding engine) by providing real-time data and oracle outputs that can trigger milestone payouts, finalise match allocations, or inform AI evaluations.
- **Meta Governance** can configure or update the curation rules, oracle thresholds, or circle mandates, ensuring that the data ecosystem remains aligned with the DAO's evolving priorities.

### Allo Intelligence

#### Introduction

This pillar is where Artificial & Human Intelligence is augmented and hybridised to produce optimal decision-making. Our goal here is to bring onchain decisions into context, so that Agents can learn from our judgements and deliberations. Facilitating their progressive control of the protocol and optimisation of funding decisions.
**Purpose:**
The **Allo Intelligence** pillar is designed as the onboarding funnel, with agentic feedback integrated all the way through. A parallel evaluation framework is introduced to ensure that every decision made is interrogated in public.

**Submodules:**

1. **Allo Apply**
- **Role:** Serves as the primary entry point for projects, teams and operators to submit proposals along with structured metadata.
- **Mechanics:** Provides a user-friendly onboarding process that captures critical information such as project details, budgets, timelines, and domain relevance. Basic validations (including automated checks) ensure that applications meet minimum standards before moving forward.
- **Value:** Ensures consistency in submissions, laying a solid foundation for subsequent reviews and evaluations while lowering barriers to entry for new applicants.

2. **Allo Review**
- **Role:** Facilitates the initial screening and assessment of proposals by human reviewers, augmented by early AI-based pre-screening.
- **Mechanics:** Assigns reviewers to proposals based on domain expertise and uses scoring or qualitative feedback to determine which applications progress to the evaluation stage.
- **Value:** Provides transparency and accountability in the selection process, with reviewers helping to flag high-potential projects while also filtering out submissions that do not meet quality or relevance criteria.

3. **Allo Eval**
- **Role:** Delivers a deeper, second-layer evaluation of proposals and reviewer outputs to ensure consistency, fairness, and alignment with DAO objectives.
- **Mechanics:** Uses standardised rubrics and AI-driven cross-checks to verify reviewer assessments and integrate historical performance data, generating a final evaluation score for each proposal. Additionally, in addition to the operators who do formal evaluations, the community insight is synthesised and challenges decision-making.
- **Value:** Acts as a quality assurance mechanism, reducing biases and reinforcing the accuracy of funding decisions through comprehensive analysis.
4. **Allo Agents**
- **Role:** Automates routine tasks and supports decision-making processes through AI-powered agents that monitor, trigger, and even execute specific actions.
- **Mechanics:** Agents will increasingly give immediate feedback to applicants ensuring they maximise their application quality. They will close the feedback loop by passing back direct reviewer quantitative and qualitative feedback, all of which is training data for future automation.
- **Value:** Enhances operational efficiency and scalability by reducing manual intervention, allowing the system to react dynamically to real-time data and evolving conditions.

5. **Allo Automation**
- **Role:** The progressive automation of tasks across the protocol. We drive towards the creation of GAIA, a meta agent anchored in the espoused values of the protocol and the 8 forms of capital.
- **Mechanics:** Agents replace human action over time by feeding from data generated by Allo Data, including decision-making histories and prediction data.
- **Value:** Facilitates scale by reducing protocol overhead and drives Allo forward on the frontier of agentic DAO governance.

**Integration with the Core Protocol:**
- **Allo Intelligence** closely interacts with Registry.sol, ensuring that only profiles that have passed through Allo Apply and Allo Review can access the protocol. Ensuring a healthy commons.
- AI-driven insights from **Allo Agents** feed back into meta-governance, where adjustments to fee structures or strategy parameters can be automatically proposed or executed, creating a continuous feedback loop.

### Allo Commons

#### Introduction

Inspired by Ostrom's commons principles, this pillar is all about maintaining a high-fidelity commons by carefully constructing its membership. The boundaries of the commons are expanded and contracted through its knowledge domains. Paid roles (operators) are brokered in unit structures, that are given domain specificity and are held in consistent competition both within and against other units.
**Purpose:**
Allo Commons ensures that funding decisions and domain expansions reflect the collective wisdom and evolving needs of the ecosystem.

**Submodules:**

1. **Allo Domains**
- **Role:** Establishes structured, thematic knowledge domains that partition the protocol into distinct areas of focus (e.g., AI, climate tech, real-world assets).
- **Mechanics:**
- Domains are created based on clear, community-vetted criteria and governed by domain-specific rules.
- They serve as self-contained sub-DAOs with their own governance, budgets, and operational protocols.
- **Value:**
- Enables focused innovation and expertise, ensuring that funding and operational decisions are made by those with domain-relevant knowledge.
- Helps shape the protocol's overall scope by defining which areas are prioritised for growth and funding.

2. **Allo Operators**
- **Role:** Organises the operational backbone of the DAO, by creating 'units' of Operators, each of which operate with a structured hierarchy of roles.
- **Mechanics:**
- Senior operators, operators, and support agents (humans to begin) are assigned within each domain, with defined responsibilities and compensation levels. These are pseudo-hierarchical structures, ensuring that the senior roles are not fixed but fluid based on Eval performance.
- These roles ensure that day-to-day tasks—such as pool management, application processing, and treasury oversight—are executed efficiently.
- **Value:**
- Provides accountability and stability to the ecosystem by formalising responsibilities.
- Enables scalable management across multiple domains while maintaining consistent operational standards. Operator 'units' are only unlocked when an above threshold treasury revenue is achieved.

3. **Allo Registry**
- **Role:** Registry.sol serves as the core identity and membership system, underpinning the entire commons framework, but here we present it to the public and nuance it with metadata (and potential Hypercerts).
- **Mechanics:**
- Maintains profiles that record domain affiliation and role assignments.
- Append domain specificity via the metadata constructor in Registry.sol
- Enforces access controls and verifies membership, ensuring that only verified participants engage in domain-specific governance.
- **Value:**
- Acts as a trusted, on-chain record for community membership and credentials, essential for fair participation.

4. **Allo Community**
- **Role:** Provides an inclusive community space where broad community opinion is integrated into the governance process

**Mechanics:**
- Offers channels for community input, discussions, and feedback on key decisions—such as which domains to open, which projects to prioritise, or how funding mechanisms should evolve.
- Uses participatory tools (such as open forums, advisory panels, and lightweight voting mechanisms) to capture and aggregate community sentiment.
- Agent-facilitated dialogue and debate.
- **Value:**
- Ensures that the evolution of the protocol remains aligned with the values and needs of its wider community.
- Bridges the gap between technical governance (handled by operators and domain leads) and grassroots community perspectives, enhancing transparency and legitimacy.

**Integration with the Allo Protocol:**
This pillar is principally involved in governing Registry.sol, enhancing its utility by curating domain specificity via metadata enhancements.

### Allo Economy

#### Introduction

Allo Economy is the financial engine of GAIA, ensuring that capital is raised, managed, and distributed in a sustainable and dynamic manner. It governs and builds the main raise platform, manages the treasury and is responsible for the token economy. The key innovation here is linking the scale of the protocol to its performance, expanding as fees are earned, or when sufficient ALLO is staked, or diversified into non-network assets.
**Purpose:**
This pillar integrates tightly with the core Allo contracts—especially leveraging the Anchor contract to enforce profile-specific treasury permissions. It ensures that only vetted profiles (those that have passed the apply and review process) can access treasury funds and participate in advanced economic functions. Additionally, the Raise platform draws on a canonical set of funding strategies approved by meta-governance, while ongoing review and evaluation unlock pool funds based on performance. Surplus capital is monitored by meta-governance, which in turn informs the expansion of new domains and operator units, and the token reserve emissions are dynamically managed based on prediction-weighted yield adjustments.

**Submodules:**

1. **Allo Raise**
- **Role:** Serves as the primary interface for capital inflows, enabling profiles to create funding pools using a standardised, vetted set of funding mechanisms.
- **Mechanics:**
- Utilises a canonical set of strategies that have been approved through the meta-governance process.
- Only accessible to profiles that have successfully completed the apply and review flow, ensuring that only credible projects can initiate pools.
- Incorporates processes for continuous review and evaluation, where funds within a pool are gradually unlocked based on milestone achievements and performance metrics.
- **Value:**
- Ensures consistent and reliable fund allocation.
- Enables dynamic adjustments to funding parameters based on real-time performance and market data.

2. **Allo Treasury**
- **Role:** Acts as the central financial hub where fees—collected via base fees at pool creation and percentage fees on subsequent funding—accumulate into a treasury.
- **Mechanics:**
- Leverages enhancements in the Anchor.sol contract to enforce profile-specific treasury access. Only authorised profiles (those with verified membership) can interact with treasury functions.
- Surplus funds are continuously monitored by the meta-governance layer; when surplus thresholds are met, new domains and operator units can be unlocked, driving protocol expansion.
- Oversees yield strategies to diversify treasury holdings and generate additional income.
- **Value:**
- Enhances financial security by limiting treasury access to vetted participants.
- Supports long-term sustainability through active surplus management and strategic reinvestment.

3. **Allo Token**
- **Role:** Serves as the native token for the protocol, underpinning governance, staking, and economic incentives.
- **Mechanics:**
- The treasury governs the token reserve and emissions, ensuring a controlled supply that aligns with protocol performance.
- Token emissions are dynamically adjusted based on prediction-weighted yield parameters set by meta-governance.
- Token holders participate in governance decisions (e.g., voting on fee adjustments or strategy changes) and may stake tokens to secure additional rewards.
- **Value:**
- Aligns incentives across the ecosystem by linking governance, participation, and economic rewards.
- Provides liquidity and fair value capture, reinforcing the protocol's economic balance.

**Integration with the Core Protocol:**
Here we explore the ability to segment the treasury, opening up the ability for profiles to access specific assets, or capped allocations using the Anchor.sol contract. We curate a list of canonical funding strategies ensuring only the most effective mechanisms are utilised by allo.sol.

## Where Next?

* A full economic simulation of GAIA, including projecting fee revenues generated by funding rounds, rALLO minting, fees generated from Allo Predict and burn rates based on the number of Domains and Operator Units.
* New Mechanisms (with teeth):
* Quadratic Competitions
* Sequential Follow-on Funding via eliminative QV rounds
* Merit Weighted Voting
* Back testing reviewer performance based on oracle outputs
* Assigning merit weights to reviewers who make the best bets
* Reviewer / Eval Markets
* Bet on the reviewers who make the best decisions
* Bet on Agents that will perform the best against in-house evals
* DAO Based Consensus Oracles
* Mechanisms for battling the oracle problem through QV-based expert consensus games
* Sortition Partners
* Community profiles are randomly selected and incentivised to partner with projects to follow them through their entire journey and document their experience
* Pseudo-hierarchical Operator Units
* Systems for ensuring fluid competition, and fair incentivisation of operators in the DAO
* Stake-weighted prediction mechanisms
* Base mechanism for stake-based prediction pools
* Augmented mechanisms for reputation-based prediction amplification
* Agent framework designs and meta-agent construction. Building an Agent that will guide the DAO and keep it on track towards its espoused values
* Infrastructure feasibility and specification designs
* Allo protocol contract integration paths
* Knowledge architecture and ontology engineering