Valocracy: A Web3 Solution for Next-Gen DAOs

Valocracy is a socio-economical framework derived from Web3 ideals and implemented in blockchain technology. It encompasses a proposal for novel tokenomics and incentives on human coordination, that attempt to address prevalent issues that still persist on both the traditional world and on the current state of DAOs.

The proposal of Valocracy is theorized by CastaCrypto Manifesto's, which can be fully appreciated in https://valocracy.xyz.

This project is the first attempt for a MVP implementation of Valocracy, using EVM technology.

We use both ERC-721 and ERC-20 standards to implement the governance and economic aspects of a Valocracy, with a front-end that allows the engagement from participants in a Valocratic community.

For the sake of a MVP scope and time limitations in the hackaton, we do not fully implement all the principles of a Valocracy collective. Here, we focus on it's core system, in an attempt to demonstrate the viability of a Valocracy and also to bring awareness and provoke further discussions on the subject.

The ideal of a Valocracy is to build a socio-economical framework in which the "ruling class" is comprised of the ones who aggregate most value to the whole community. 

In the core of a Valocracy lies a clearer separation between economic and political powers attributed to the members of a collective. The basis for this achievement is to represent both aspects as independent tokenized assets in order to subject them to different rulesets, enforced by smart contracts.

Whenever an individual user performs a feat that brings value to the community, the user receives a NFT that immortalizes the employed effort on a blockhain, thus preserving the non-fungible aspects of every and each individual contribution: "WHO did WHAT and WHEN".

Every tokenized effort is then divided in two independent sub-assets: a) one that represents an owned Economic Power within the community, which is a permissionless share of a collective treasury; b) one that represents an owned Governance Power within the community, which is the share of voting power the user has on governance proposals. 

Although the Economic Power, in similhar fashion to a LP token, may be sold and bought at the secondary market, Governance Power is soul-bound, and cannot be bought, sold or transferred.
   

As individual contributons may differ in both effort employed and aggregated value for the community, they are weighted via a rarity system, which each Valocracy is free to determine using strategies such as a power of two or fibonnacci progression.

As a result of this arrangement, each individual member of the collective has their share of Economic Power and Political Power dinamically appraised as the community evolves over time, while other individuals keep contributing value. 

This is how a Valocracy aims to be a system in which the ruling class are the ones who bring more value to the community, as both the Economic Power and Political Power of any individual is constantly dilluted by the overall collective activity, and only the individual who constantly bring value over time will be able to aspire for greater representation and rewards.

In conclusion, Valocracy is more than just attempting to tokenize something that already exists. It's about using blockchain and tokenization to truly innovate, building a novel public goods plataform to leverage on-chain human coordination.

For our implementation, we made a portal in React.JS with a Node.JS back-end. The effort
NFTs are minted on the Scroll Sepolia network, where we also implement the collective treasury. For the sake of time and scope, governance is still operated on the back-end, but derives the calculation of each individual governance power from the minted NFTs.

We've also added an A.I. module via a Near BOS widget that has been trained on the Valocracy manifesto, and that is able to answer questions about valocracy ideals and principles.

The portal allows for an administrator to mint NFTs for each member of a Valocratic collective and to put forth new proposals, and also allows for members to check their current economic and political power, vote on proposals and request their claim over the collective treasury.

Users must authenticate via email and then connect their wallet, to be recognized as members and to gain access to full functionality.