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# System prepended metadata

title: Taking up and stepping down as Copernicus DAO token holder

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 # Taking up and stepping down as Copernicus DAO token holder
Version: 0.6
By: Henk van Cann, Hans Geldof, Martin Oppenheimer
Date: Nov 5 2022


This draft intends to become a chapter (v1.0) to vote on. If it passes, it becomes applicable with immediate effect. Voting will be done by a consensus vote. See [how we vote](#How-we-vote) for details about the voting proces of the Copernicus Beer DAO. All votes described in this document are consensus votes.

## Current situation
20 tokenholder, 1 pending token (because of one erroneous minting/issuance). A few split tokens exist. Max split is currently 1/3.
So there are five free tokens of the first batch.

We’ve discussed the taking up and stepping down during the Copernicus meeting of Sept 29 2022 in Amsterdam. Minutes: https://hackmd.io/uaAbFSa1TaaioevtudOW6w

### Criteria to meet
- Active participation in meetings and / or circles and took up urgent / important tasks (*should* be exemplary compared to other token holders, that's how we grow)
- The candidate has met self-imposed deadlines and deliverables, if any (*should* be committal; Volunteer vs. Non-commital vision)
- The legal terms of the DAO (once they exist) *must* be accepted
- Payment of the amount due of the token, see the [pricing](#Pricing-DAO-tokens).

The exit terms and conditions (selling the tokens again) must be accepted beforehand.

Yes, it’ll start to look like work in an organisation. The only thing that matters is finally it’ll be a decentralised decision whether or not we impose certain rules and regulation on ourselves. The DAO cannot be not a freebee anarchy and be succesful at the same time.

## Design of chapter
From the minutes of the last meeting, the relevant points have been addressed in the description below. These points are:
- Is volunteering the same as 'noncommittal'?
- Threshold: minimum share to brew
- Threshold: amount of split tokens

> The commitments a volunteer has to make: "Do what you say you are going to do. Be accountable to deliver results."

**Below we use ‘must’, ‘should’, ‘could’ as verbs to indicate the strictness of the rules involved.**

## New rules of engagement
Ideas that have sprouted have already matured in the text below.

### Warm up and cool down
The draft proposes a warm up and cool down period. To enter the *warm-up* period an interested participant first becomes a *candidate* token holder. When the criteria at the end of this period have been met, the candidate can buy a token.

The *cooling down* been designed similarly: a token holder not able to meet expectations or wants to leave at one's own request enter a cooling down period of time to either participate actively (again) or sell the token at the end of the *cooling down* period.
Warming-up and cooling down are both six-month periods.

Candidates are invited up by the [WUCDOC](#Oracle-Warm-Up-and-Cool-down), and then ulitmately joining DAO will be voted on in DAO meetings. So depending on frequency of DAO meetings, a candidate could get accepted faster than 6 months.

We strive to get at least two new full token holders (max. six people) per year, there’s no maximum other than all new token holder must align with the present document.

If we would see two full token holders (max. six people) at the inactive end of our DAO per year, retire into a "*Friends of the Coperinus Beer*", then some natural refreshment of the active Token-holder group would take place.  

There’s no maximum of retiring tokenholders other than all token holders must align with the present document regarding the cooling down period, and the financial situation of the DAO should be healthy enough to buy back the tokens for a market price or the minimum buy-back price.

Beware that “active” doesn’t mean ‘run, sweat, build, do, make tangible results’. People are different. Some are good at doing just the before mentioned. Some are better at more intangible construction, sales, understanding, education, etc.\
Both types of people are equally respected in the Copernicus DAO.

### Silent reconfirmation of terms and  conditions in this writeup
At least every year we *should* vote on an updated chapter. Anyway we *must* keep aligned with the currently accepted chapter. Any circle *could* prepare amendments to the currently applicable chapter.

### Pricing DAO tokens

### Minting price
The current minting price (= initial price) is currently 1000 euro equivalent in Ether. A different number requires a revote on a package that contains the altering of this threshold explicitly (*must*).

### Minimum price tokens DAO buy back

In 2022 and 2023 the minimum buy-back price of the DAO will be 1/4 of the before mentioned minting price (2022 -> 1000 euro, so 250 euro worth of Ether is minimum).
A different number requires a revote on a package that contains the altering of this threshold explicitly (*must*).

> Beware: a minimum buy-back price has no correlation whatsoever to the sales price of a Copernicus DAO token. See [minting price](#Minting-price).

### One-time offer for token holders who can't follow the majority on the new regulation
This document tries to protect the majority of active tokenholders against inactivity of the minority. The rules and regulations are meant to be balanced and come into play by voting. But yes, the new rules change the game in favour of active tokenholders. We respect anyone who can't go along wth this change of course. And if we get voted out with proposal we'll have to change it into an acceptable one for the majortiy of tokenholders. That's the ultimate form of respect for the will of the majority: trash the proposal for the Copernicus DAO.
Because this proposed repair wasn't part of the original DAO, we've equipped this proposal to include an offer for a one-time buyback to initial token holders of original Ether price (0.25 ETH).

## Market price
In the Netherlands there's a saying "Wat de gek ervoor geeft"; anything is possible. But mind you:
- the buyer has to go through the warm-up period if not already done.
- actually paying the minimum price is something the DAO should vote on at the time of the buy back.

### Filling in the points raised
In the Copernicus DAO volunteering is not the same as 'non-committal' for token holders. A candidate could make the error to consider voluntarily work as non-committal.

#### Thresholds

1. Minimum share to brew: should be a 1 token. If you don’t have a half of a share on your own, then join a venture to get at least 1 token to brew. A different number requires a revote on a package that contains the altering of this threshold explicitly (*must*).

2. The split token sales can be anything. The controller of the private key can fractionalize a token as much as he/she wants (no limit). Be aware that as the underlaying full token holder you're responsible for your split tokens and dito for your split token holders.

3. A current token holder *must* have less or equal than 2 full tokens. He/she cannot (opt to) buy more to avoid centralisation. A different number requires a revote on a package that contains the altering of this threshold explicitly.

There will be no new token minted in 2022/2023. We have 24 full tokens. A different number requires a revote on a package that contains the altering of this threshold (24 tokens) explicitly (*must*).

The five tokens currently *could* be supplemented with inactive token holders  and / or become a non-token-holding *Friend of Copernicus Beer*. So that’ll give the current group of token holders enough tokens to attract new driven and enthusiastic people. The [WUCDOC](#Oracle-Warm-Up-and-Cool-down) will prepare and guide the process.

## Taking up as a Token Holder
When somebody is interested to buy a (share of a) token he/she can enter the candidate token holder status. The only criterium is that we’d like to get a written request of how many tokens he/she is interested in and why.

### Become a candidate token holder

When somebody is interested to buy a token he/her *should* do:
- read all available on-line information about Copernicus, before firing questions on the other token holders
- align themselves with the Copernicus charter, are you a Copernicus DAO type of person?
- [WUCDOC](#Oracle-Warm-Up-and-Cool-down) will screen candidates and "let them in"
- Are you willing to put skin in the game?

When somebody wants to brew in the warming up period he / she must find a current token holder to brew beer with.

He/she *could* do:
- A candidate token holder gets a login in the DAO’s Sobol.io. He could learn and participate in circles
- A candidate token holder that meets the brewing threshold with the intended token purchase could do preparatory work to brew in the future by him/herself
- Answer the questions from the DAO readily available to any candidate token holder.

## Stepping down as a Token Holder
We have two flavours here: departure at own initiative and not being able to meet the requirements recurrently.

### Departure at own initiative
The cooling-down period is used to find a new token owner at a reasonable market price. Mind the [rights of first refusal](#Right-of-first-refusal) below. The market price is a price offered in writing by a natural person that we can authenticate.

### Replacement by chapter
The Copernicus DAO strives for a natural progression of token holders. People come and go. Some people have to go. This is a sensitive topic in any "free" organization. But often the effect of *not* ruling exits is underestimated: A slow decline of the organisation is often its faith. The reason is that if rules haven't been put in place the share of active people gets smaller over time, in comparison to the idle portion of shareholders. The organisation comes to a grinding halt.

We don't want this to happen in the Copernicus DAO. There is no place for just "hodlers" in our DAO. Therefore we strive to get new people on board that surprise us, even outclass us, with their energy, activity, etc.

These are the criteria to objectively judge whether a current token holder is on the bleeding edge. For a long time the token holder
1. Hasn't contributed to circles in Sobol.io
2. Hasn't brewed any beer
3. Hasn't joined meetings and or contributed to them
4. Hasn't done any external sales and marketing work that paid off
5. Hasn't been very active in our social media

The 'total amount / accumulated work done so far' is a strong positive indication for somebody, even if the token holder in this case has a "bad-hair" year.\
The activity expected is, albeit losely, relative to the amount tokens held.

> Example to illustrate what 'losely' means:
> We don't expect a 1/3 token holder to work as driven as a 2 full tokens holders. Conversely, we don't expect a 2-tokens holders to work his/her ass off to meet a "6 x" expectation compared to a 1/3 token holder who is fairly active.

We should not get a situation that the Copernicus DAO is a place where people feel the need to display their active attitude, by  hastely overrunning eachother, doing the most visible work there is, like demonstratively fetching coffee and beer during a meeting.

*When a token holder sticks to the joint plan of building a great beer brand together in a decentralised way, never will he or she be asked to sell their tokens.*\
Having said this, as a group we need to have some way out with people that are not actively contributing for a long period of time. Let them hodle bitcoin, but not Corpernicus tokens.

### Cooling down means taking up as if one were a candidate
Look at the criteria for a candidate token holder to know how to ward off the final request to sell your tokens. 

### Oracle Warm Up and Cool down
Three people per two year have a seat in a Circle that confidentially handle a selection of token holders that might be eligble to cool down and finally sell their token as a - hopefully to be averted - next step.

> We need to set rules for who can be in this Warm Up Cool Down Oracle Circle (WUCDOC), for we *should* prevent somehow that some candidate for cooling down takes seat in this important circle dealing with sensitive issues.

The Corpernicus DAO needs to explicitly vote for the three members of this circle (*must*). Every member should be replaced every two years, not all at the same time, but with an 8 months interval.\
So for the first WUCDOC, one member will only be on for 8 months and the second one will be 16 months in function.

Suppose the WUCDOC has determined a candidate for a cooling down - and eventually also entering the sale of their token(s) trajectory.

During the cooling down the circle also speak to the candidate(s) about how to better meet the criteria of being a respected Copernicus DAO token holder.

The WUCDOC reports anonymously on the status of their work. They should do their work independently, not steered by anyone.

Any former tokenholder *could* reenter as a candidate token holder again and any time after the cooling-down period has been sat through.

### Right of first refusal
1. The DAO *should* vote to buy back tokens at the market price 
2. The DAO *must* accept the buy of the minimum buy-back price if this is applicable at the end of the cooling down period
3. After this any other tokenholder can opt to buy a token, *not getting over* the maximum amount of tokens per holder by the intented purchase.

After this anyone can buy against the marketprice, provided
1. he or she becomes candidate tokenholder and meets the requirements
2. pays the amount due

## How we vote
Within the Copernicus Beer DAO, we have two ways of voting:
1. By consensus
2. By consent

Both types of votes will be registered in snapshot. The full text of the proposal must be included in the registration in a non-editable way.

### Voting by consensus
A concensus vote is passed when:
* More than 50% of the eligble voters vote in favour of a proposal
* 1 token represents one eligle vote
* Since token with ID 1 is locked inside the Copernicus Sphere, this token is not considered an eligble vote

In practice this means that of the current 20 tokens, only 19 represent an eligble vote. Therefore, a majority vote needs 10 votes to pass. When the token send to the Copernicus Sphere can be controlled by anyone, this token will represent an eligble vote.

### Voting by consent
A consent vote is passed when there are no objections to a proposal by an eligble voter. Objections must be thoroughly motivated.



