As stated from the get-go, while Beam started the project as a for-profit venture, the long-term goal always was to pass the control to Beam holders, the first step toward such decentralization was the non-profit Beam Foundation, next stage is the BeamX DAO
The Beam Foundation uses the funds allocated to the Beam DAO Treasury to continue developing and promoting the Beam protocol and advance the broader privacy-related agenda.
The Beam Foundation is registered in Singapore as a Company Limited by Guarantee, the preferred method of writing a non-profit body in Singapore. Singapore is crypto-friendly, but also it is a truly global city, a place where East and West meet.
The Beam Foundation governs by a Board of up to seven members; the current Board, all of whom have supported Beam for a long time and have the project's best interests at heart. The four current board members are:
Guy Corem: Professionally involved in the cryptocurrency industry since 2013, Guy co-founded and was the CEO of Spondoolies-Tech. In addition, Guy co-founded DAG Labs.
Bo Dong: A veteran crypto trader and entrepreneur since 2016. Dong has a deep understanding of token economies and liquidity. Dong is the founder and CEO of Altonomy, a well-known liquidity provider in the cryptocurrency space.
Ferdous Bhai: A highly-respected Bitcoin advocate, has established Canada’s largest Bitcoin OTC brokerage, YapCX, and started a high-performance cryptocurrency exchange, ChainRift. Ferdous is an acclaimed proponent of Bitcoin’s peer-to-peer decentralized permissionless governance.
Wilke Trei: A mathematician specializing in computational discrete mathematics, Wilke is also a freelance mining software developer focusing on memory-heavy algorithms that run on GPUs.
The Board performs the Governance of the Foundation. After gauging the community's will via community calls, polls, and chats, the Board then decides by a simple majority.
BeamX DAO: Governance Framework
Governance of BeamX DAO conducts through the voting of BeamX holders. Two types of proposals require a vote: Regular Proposals and Special Proposals.
Voting times for Regular Proposals run every voting epoch and lasts two weeks (or 20160 blocks).
Regular Proposals include distributing a positive balance from DAO income, e.g., burn, reward, rebate, BRR, etc. DAO income distributes across three categories:
Repurchase and burn BeamX tokens.
Replenish the DAO reserve pools, e.g., BeamX Swap DEX.
Special Proposals are available for voting during certain voting epochs only. Special Proposals may include the following:
Changes for specific parameters of the DAPPS controlled by BeamX DAO including, but are not limited to: fees, fee rates, collateralization ratios, accepted collateral types, parameters of the collateral auctions, reserve fund cap, and others.
Proposals to improve the BeamX DAO, e.g., BeamX DAO Improvement Proposal (BIP).
Voting cycle for Regular Proposals
Submitting Regular Proposals
Beam Foundation or BeamX DAO facilitators will submit Regular Proposals for a vote in our forum seven days before the next voting epoch. The team will set the initial BRR rate. Then each element can be increased by proportionally decreasing the other.
If the initial BRR set (Burn, Reward, Rebate) were 5%, 65%, and 30%, respectively, then the vote would include four options*:
No change. Keep existing distribution (5% burn, 65% reward, 30% rebate).
Pro burn. Lower reward and rebate (10% burn, 61.6% reward, 28.4% rebate).
Pro reward. Lower rebate and burn (4.3%, 70% reward, 25.7% rebate).
Pro rebate. Lower reward and burn (4.6% burn, 60.4% reward, 35% rebate).
*In the event of the BeamX DAO exclusively using BeamX stable, without a Beam Swap, the initial proportion will be 50% - 50% - 0%.
Creating a vote for Regular Proposals
Regular Proposals votes are created by BeamX DAO facilitators one day before the next voting epoch.
Voting for Regular Proposals
Voting times last for one epoch. Users must have their BeamX tokens locked in the voting contract during the previous voting epoch to be eligible to vote in the current voting epoch. One BEAMX token equals one vote. The vote will pass via an absolute majority, regardless of the total amount of BEAM locked.
Voters (someone who locked BeamX in the voting contract) can increase or decrease their stake at any time. If they reduce their stake in BeamX, their voting power is the minimum stake value during the current voting epoch. If they increase their stake, their voting power will increase during the next voting epoch (provided they don't reduce their stake during that time).
To claim voter rewards, voters must vote all proposals up for a vote in the current epoch.
Implementation of the Regular Proposal
Once the voting epoch concludes, any DAO surplus distribution will perform according to the results of the vote:
Surplus marked for burn will go towards purchasing BEAMX using Swap pools. Any BEAMX holder can initiate such a transaction.
Surplus marked for rewarding voters that fully participate in the voting epoch (meaning they voted for every proposal) can claim their rewards according to their minimal stake during the voting process.
Surplus marked for reserve (i.e., rebate) will distribute across the reserve pools of BeamX DAO proportionally to the size of those pools. Any BEAMX holder may initiate this transaction.
Voting cycle for Special Proposals
Submitting Special Proposals
Any user can publish a Type A BIP as a post on our forum. Every proposal must include the following three elements:
Description of a problem the proposal is aiming to solve.
A proposed solution.
Justification or reasoning of the proposed solution.
If the Special Proposal is a Type B BIP, the user must publish a BeamX DAO Request for Comments. After a community discussion, the BIP framework can then take shape and formulate according to the rules of the BIP framework with MIP or other variants providing a roadmap.
Creating a vote for Special Proposals
Following a discussion on the forums initiated by the BeamX DAO facilitators, voting commences seven days before the voting epoch.
Voting on Special Proposal
All voting rules that apply to Regular Proposals extend to Special Proposals.
In addition, the percentage of the total BEAMX supply will dictate quorum rules. The Initial quorum is 1% and 5% for types A and B, respectively; later updates can come through special proposals of type B.
Implementation of the Special Proposal
If a majority vote passes for a Special Proposal, the Beam Foundation and BeamX DAO Facilitator implements the proposal.