Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — DAO Tokenomics & Voting Power Development Guide
1. Purpose & Scope
This document provides the full technical and functional breakdown of the tokenomics, distribution models, and voting power calculations for CHLOM’s Global DAO in Phase 4. It defines how governance tokens (CHM) and participation rewards are issued, managed, and integrated with the DAO’s decision-making process.
Goals:
- Align token incentives with active, responsible participation.
- Maintain fair voting distribution while preventing governance capture.
- Integrate token mechanics with compliance and licensing systems.
- Ensure smooth migration of token governance into Phase 5’s fully decentralized model.
2. Token Classes & Utility
- CHM (Governance Token)
- CHLOM (Utility Token)
3. Token Supply & Distribution
Total CHM Supply: 1,000,000,000 (fixed)
- Founders & Core Team: 15% (4-year vesting, 1-year cliff)
- Ecosystem Development Fund: 25%
- DAO Treasury: 30%
- Early Contributors & Validators: 15%
- Public Distribution / Launch Pools: 15%
Locking & Vesting Contracts: Implemented via audited timelock smart contracts with enforced schedules.
4. Voting Power Calculation
Voting weight is determined by:
VotingPower = BaseStake + DelegatedStake + ReputationScoreMultiplier
- BaseStake: Direct CHM staked by voter.
- DelegatedStake: CHM delegated to voter by others.
- ReputationScoreMultiplier: Calculated from historical participation, proposal success rate, and verified compliance actions.
5. Anti-Capture & Fairness Mechanisms
- Quadratic Voting: Reduces dominance by large token holders.
- Voting Power Caps: No entity may control more than 5% of total voting weight.
- Decay Mechanism: Inactive wallets lose 1% voting power per governance cycle.
- Sybil Resistance: ZKP-based identity verification.
6. Staking & Slashing
- Staking Rewards: Distributed in CHM for active participation and proposal execution.
- Slashing Conditions:
- Proposal manipulation.
- Malicious execution attempts.
- Proven participation in governance attacks.
- Slashed Tokens: Burned (70%), sent to treasury (30%).
7. Integration with DAO Modules
- Proposal Creation: Requires minimum CHM stake + passing compliance pre-check.
- Voting Periods: Dynamically adjusted based on proposal sensitivity.
- Execution Layer: Automated stake verification before voting.
8. Phase 4 → Phase 5 Migration Path
- Phase 4: DAO retains oversight to adjust token parameters via governance council.
- Phase 5: All tokenomics and voting rules are controlled entirely by DAO smart contracts.
Summary: This specification ensures CHLOM’s tokenomics align economic incentives with fair governance, preparing the system for full decentralization in Phase 5.