Governance

The governance section evaluates the processes and procedures used to monitor and manage sustainability-related risks and opportunities in a decentralized application.

This includes the legal structure, leadership team, stakeholder engagement, funding, community involvement in decision making, and tokenomics distribution. The information helps in understanding the governance structure and processes, which supports the evaluation of their sustainability-related risks and opportunities.

• Legal Structure of DAO/Entity: This parameter evaluates the legal structure of the decentralized application, including the legality of the DAO or entity.

  • Legal Structure of DAO / Entity

    • Legality of DAO / Entity

• Leadership Team: This parameter evaluates the leadership team of the decentralized application, including the average years of experience of the top 5 executive team members and the gap between the areas of experience possessed by the executive team and the requirements of the business context. It also looks at the diversity of the leadership team, including gender, and the conflict of interest.

  • Leadership Team

    • Average years of experience of the top 5 executive team members

    • The gap between areas of experience possessed by executive team and required by the business context

    • Leadership diversity

    • Conflict of interest

• Partner: This parameter evaluates the strength of the partnership network of the decentralized application.

  • Partner

    • Strength of partnership network

• Stakeholder Engagement: This parameter evaluates the stakeholder engagement of the decentralized application and the stakeholder engagement index. It includes examples of stakeholders who are engaged with the decentralized application.

  • Stakeholder Engagement

    • Stakeholder Engagement Index

      • Example

        • Stakeholder 1

        • Stakeholder 2

• Funding Provenance and Distribution: This parameter evaluates the funding provenance and distribution of the decentralized application, including the % of token supply held by the founding team, the number of wallets holding the tokens, and the funding quality. It also evaluates the trustworthiness of the top 5 decision makers.

  • Funding provenance and distribution

    • % Token supply held by the founding team

    • # of wallets holding the tokens

    • Funding provenance

    • Funding quality

    • # of stakeholders adding upto absolute majority

    • Trustworthiness of top 5 decision makers

• Community Involvement in Strategic Decision Making: This parameter evaluates the level of community involvement in the strategic decision-making process of the decentralized application, including the level of decentralization and democracy in the decision-making process.

  • Community involvement in strategic decision making

    • Is decentralization enabled?

    • How democratic is decision making?

    • Community and Privileges

• Community Treasury: This parameter evaluates the community treasury of the decentralized application, including its existence, level of democratic control, and the benefits received by the stakeholders.

  • Community Treasury

    • Does community treasury exist?

    • Level of democratic control of the treasury

    • What % of stakeholders are benefitted from community treasury?

    • What % of revenues/stakes are held in treasury?

• Tokenomics Distribution: This parameter evaluates the tokenomics distribution of the decentralized application, including the verification of the distribution as claimed.

  • Tokenomics distribution

    • Tokenomics Distribution

    • Verify if the distribution is implemented as claimed