📢Tracer DAO
Tracer Decentralized Autonomous Organization
The Tracer DAO (Decentralized Autonomous Organization) is an essential component of the Tracer ecosystem, serving as the governing body that ensures the integrity, transparency, and effectiveness of the project by aligning the incentives of Tracer token holders with the overall goal of building an efficient market for removing CO2 from the atmosphere.
Governance through the DAO
Tracer token holders play a crucial role in the governance of the Tracer ecosystem through the DAO. They are responsible for voting on key decisions that shape the future of Tracer, including:
Endorser Selection: The DAO is responsible for granting Endorser NFTs to trusted certification authorities and organizations that have the expertise and credibility to curate and manage carbon removal projects. By carefully selecting Endorsers, the DAO ensures that only high-quality projects are onboarded onto the Tracer standard.
Endorser and project oversight: The DAO has the power to revoke Endorser NFTs or Project NFTs if they are found to misrepresent their performance or engage in fraudulent activities. This oversight mechanism helps maintain the integrity of the Tracer ecosystem and protects buyers from low-quality or fraudulent carbon credits.
Smart contract upgrades: As Tracer evolves, the DAO is responsible for proposing and voting on upgrades to the Carrot and Tracer smart contracts. This allows the ecosystem to adapt to changing market conditions, incorporate new features, and address any issues that may arise.
Incentive alignment
One of the key strengths of the Tracer DAO is its ability to align the incentives of Tracer token holders with the broader goal of removing CO2 from the atmosphere. This alignment is achieved through a unique reward mechanism:
Carrot economy driven rewards: The rewards for Tracer token holders are directly tied to the financial volume of the Carrot economy. Specifically, the rewards can be seen as the result of the number of Carrot tokens minted multiplied by the grade of the tokens (which represents the persistence of the underlying carbon removal project). This means that Tracer token holders are incentivized to support the growth and success of the entire carbon removal market, rather than just focusing on short-term gains.
Treasury management: The Tracer DAO also manages treasuries of Tracer tokens (50% of the total supply of Tracer), Carrot tokens (as a result of commission on Carrot minting) and Ethereum (for execution of smart contracts), which will be used to fund development, incentivize participation, and support high-impact carbon removal projects. By carefully managing these resources, the DAO can help ensure the long-term sustainability and growth of the Tracer ecosystem.
Participation and voting
Participating in the Tracer DAO is simple and accessible to all Tracer token holders. The voting process is designed to be transparent, secure, and efficient:
Proposal submission: Any Tracer token holder can submit a proposal for consideration by the DAO. Proposals can cover a wide range of topics, from Endorser selection and project oversight to smart contract upgrades and treasury management.
Voting: Once a proposal is submitted, Tracer token holders can vote on whether to approve or reject it. The voting power of each token holder is proportional to the number of Tracer tokens they hold, ensuring that the decision-making process is fair and representative of the entire community.
Implementation: If a proposal is approved by the required majority of Tracer token holders, it is implemented by the Tracer team or through automated smart contract execution, depending on the nature of the proposal.
By combining strong incentive alignment, robust governance mechanisms, and accessible participation, the Tracer DAO functions as a powerful and resilient organization for overseeing the activities within the Tracer ecosystem to help drive the growth of the carbon removal market.
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