4. How Decisions Are Made: Governance & Ownership Structure

Membership Credits

For each $1 or equivalent that is contributed to the Community Fund, Members will receive 1 Membership Credit. Each Membership Credit entitles the Member to proportional voting rights and surplus distribution.

Ownership of Community Funds and Distribution of Surplus

The Community Fund is used for protection and growth and receives contributions and revenue and also pays out benefits and expenses. In normal circumstances, the Community Fund is expected to have surplus, which is effectively what remains after all income, expenses and reserves are accounted for. This surplus is redistributed back to members proportionally according to the number of Membership Credits held by the Member.

Governance Processes

Membership Credits exist to distribute ownership to Members. Membership Credits also ensure that The LifeDAO is community governed through a proposal and voting process. All active Members are eligible to submit a proposal for consideration by TLD Members. The proposal is first screened by the Board of Contributors and subsequently voted on by TLD Members. The number of votes each Member has is based on the number of Membership Credits held by the Member.

Board of Contributors

All Members are eligible to become a Contributor, one of nine Members who sit on the Board of Contributors. Contributors are voted in by TLD Members.

Each Contributor has two primary functions:

• Screen and approve proposals for voting on by TLD Members

• Approve and sign multisig transactions that authorize movement of funds or deployments of smart contracts that have been previously approved by TLD Members through prior governance processes

Each Contributor has a tenure of 2 years and the Board is re-elected bi-yearly. Contributors are required to participate in training around multisig security.