Proposal
This proposal reduces the role of the DAO to the question of new token mints and network parameterization. The final list of governance criteria will be established in a forthcoming proposal prior to network launch. Network parameters include MAGIC inflation rate, service costs paid by network users, the Agent Constitution, and staking requirements.
Rationale
- The community has been asking for a reduced and focused role for the DAO. We believe that the network is the best opportunity to establish a new DAO function.
- The original DAO was too broad in scope. Unfocused DAO charters lead to sprawling businesses and power struggles over large treasuries.
- Empirically, the most successful DAOs have very limited governance functions. This focus attracts sophisticated investors and deters participants seeking to gain access to treasuries.
- The original vision for the DAO, as explained in the founders’ paper, was that governance decreases over time until MAGIC becomes an on-chain “natural resource.” The DePIN network accomplishes this goal in the most minimal way necessary. We believe that the DAO still has two indispensable functions: token issuance and network governance.
Implementation
This proposal does not lead to a day-to-day change in the DAO. Recent proposals since 2025 have asked contributors to manage liquidity pool and market maker positions on behalf of the DAO. This proposal formalizes these responsibilities rather than requiring ongoing votes each year.