---
# System prepended metadata

title: HIP 8
tags: [HIPs]

---

---
tags: HIPs
---
# HIP 8
```
hip: 8
title: Multi-sig Key Holders
discussions-to: HAM Discord
status: In discussion
type: Meta
category: Governance
created: 2020-09-06
requires: N/A
replaces: N/A
```

## Simple Summary
It is important to structure the HAM governance model in a way that incentivizes HAM token holders to actively participate in governance. An on-chain governance model could be very complex, and would also discourages voting due to high gas price. Therefore, we have decided to use a snapshot-based off-chain signalling governance model that leverages a large M-of-N multi-signature. Voting will be conducted off-chain and actions will be executed by the multi-sig on behalf of the community.

This is a HIP to help outline possible multi-sig strategies, identify candidates for the Key Holders, explore the electoral procedures of selecting new holders, as well as the tenure of the elected holders.

## Abstract
There are many ways that we could assign Key Holders. For instance, keys could be simply given to the main development team and community ambassadors for an indefinite time, or we could set up a key holder electoral system to vote for representatives of the community to serve terms as key holders. 

## Motivation 
Our goal is to make sure that the keys are in the hands of people that truly represent the HAM project, its ideals, goals, and principles, as well as the community. For this reason, there could be a distinction of two types of Key Holders - permanent Key Holders and temporary (HAMbassadors) elected Key Holders. 

Permanent Key Holders being some of the core development team members of HAM, those who have been present since the beginning and have contributed in a large way to the project, align heavily with the ideals of the project, and intend to continue their support to the project. This way the origin of the project does not get distracted by short term trends or events in DeFi. 
Furthermore, the temporary Key Holders would be elected for a defined term by the community and would represent the community for that term. This would ensure that the community continues to be represented in the highly unlikely event that devs do not agree with voters’ decisions; it would serve as a protection layer. 


## Keyholder Responsibilities
**Being a keyholder is a job, not a privilege.** Keyholders are representatives of the HAM community and execute the will of the community signalled by an off-chain governance protocol. Keyholders enforce the social decision making and secure the treasury at the core of HAM.

Minimum requirements for a keyholder:
* Familiar with using Ethereum and DeFi.
* Constant availiability and community prescence.
* Commitment to HAM and community values.
* Technical literacy to comprehend important decisions.
* Contribution to discussion in an open-minded and thoughtful manner. 

As a keyholder, failing to present, or maliciously presenting could result in loss of user funds, inability of decision-making, and fragmentation of the very valuable community. Keyholders must be carefully considered, and held up to a high standard for the representation of HAM.

## Rationale
It is quite easy for keyholder selection to fall into a [popularity contest](https://twitter.com/SBF_Alameda/status/1302987467855785986). This must be avoided. 

## Structure 

### 8 Key solution: 
4 permanent Key Holders and 4 elected Key Holders. 

### Permanent Key Holders: <!--Can we call it "perpetual"?-->
"Permanent" keyholders should be keyholders who are willing to actively commit to HAM.

### Elected Key Holders: 
Elected on 3-6 month terms with a initial board chosen for the first two to four weeks of release before the first proper election. 
Could be re-elected with no maximum term limit. 

## Decision


## Copyright
Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).