Immediately after the geomagnetic storm, most nations of Magonia descended into chaos. The economy collapsed without a means to coordinate it, and most populations were reduced to informal credit and barter systems in whatever local area they inhabited. The few nations that happened to survive without substantial damage from the geomagnetic storm with their records intact rose to great power. Following around fifteen years of rebuilding the communications system and economy—and fighting back against the few imperialistic nations that tried to take advantage of the situation—the Magonians are roughly back to where they were before. They have restored widespread telecommunications and their internet. Their power grid is back online. Some nations survived. Others fell. Some new ones were born. Some split. Some were combined.

With the crisis largely completed, the United Nations of Magonia is now choosing to meet to figure out how to avoid at least the financial aspects of a future geomagnetic crisis. Your task is to determine the design for a DAO that all of the nations of Magonia would agree to use in order to maintain their account balances and other records in case of another geomagnetic storm. Bonus points if you come up with something that you think that all citizens would use, without state coercion of any kind. The DAO needs to be able to maintain the fidelity of account balances for each nation's citizens and organizations, as well as actually be a good idea for them to decide to use. The DAO, additionally, needs to be something that's good for future persons and institutions to choose to use, as Magonia is still at risk of another geomagnetic storm, and as the Magonians cannot predict which parts of the world it is likely to affect, they need to be united under a single protocol that all parties can endorse, including future parties, so as to avoid infighting that might cause another catastrophe like they just experienced.

To launch and support all the functions of this decentralized repository OS DAO will be created, which will determine the participation criteria, infrastructure solutions and tools, incentives for all three layers of members - (Nations, Organizations, Individuals). OS DAO will also be responsible for determining the direction of new technology opportunities and network development.

The number of Neutrinos is not decisive and only provides a small additional factor for calculating Photons. There is a Neutrino limit, exceeding which does not give any extra factor. The Neutrino balance is recorded several times over a certain period of time and is calculated as a weighted average.

Every holder of SOLARID has a right to vote in OS DAO or delegate their Photons to professional representatives called Illuminated.

Illuminated is a qualified person - holder of SOLARID with high REPUTATION, above a certain level, determined by OS DAO, and high social status, who is responsible for voting on every OS DAO proposal using delegated Photons. Illuminated are representatives of SOLARID holders who have no time to participate in voting directly. Photons are delegated temporarily and can be revoked at any time.

Illuminated can lose delegated Photons and reputation in case of malicious behavior.

The core OS DAO structure is called SOLARTREE. It is completely decentralized and doesn't have a specific physical location. All core DAO communication and coordination is remote.

Solarpunk is a qualified person - holder of SOLARID with high REPUTATION and social status, who is a part of SOLARTREE with full-time DAO participation. Every Magonian has a right to put forward their candidacy and become Solarpunk, if enough votes (Photons) are cast in their favor. To become a candidate, Magonian must have SOLARID with extremely high REPUTATION and SPECIAL SKILLS related to the chosen BRANCH.

Any individual is eligible to nominate themself as a leader of a workgroup within the DAO BRANCH. Eligible persons should nominate themselves for the vote. Candidate who has collected enough votes by ranking vote is elected as a group leader. Leaders can be dismissed or replaced by a majority of votes inside the workgroup. Leaders may resign at any time after announcing their intention. In case a leader is dismissed, resigns, or is unable to keep working for any reason, any vacant positions will be filled by the next ranked leader.

Every step is public and recorded on-chain. Documents are published in IPFS, records are available to every Magonian with SOLARID. The result of every workgroup's activity is presented via a report that is public and verified by DAO. Reports are processed and audited by the POLICY BRANCH, every step is public (via SOCIALS BRANCH) and available for everyone. OS DAO structure is completely transparent and every activity, proposal, audit or written document is published on blockchain (IPFS, decentralized tools, social networks).

Any individual or organization can run their own node and join OS DAO as a validator. Neutrino is used to provide Proof-of-stake consensus. Depending on required capacity, the number of validators can increase or decrease based on the needs of OS DAO and the bandwidth of the blockchain. If a group of nodes is trying to collude, the nodes lose security (the slashing mechanism).

Validators are rewarded for holding shards and mining blocks, and for securing transactions.
OS DAO Tokenomics provides for projected inflation:
• Magonian who delegated their Photons get increased APY
• Illuminated are rewarded from the Treasury + APY

Validators receive rewards for block/data storage/fees, as well as additional country/organization rewards.

Decentralization of network nodes is carried out at the expense of additional rewards allocated from the Treasury for the organization of additional nodes and nodes in the regions where their number is insufficient.

ENGINEERING AND DEVELOPMENT BRANCH actively monitors and analyzes the geographic location of nodes and networks, and makes proposals in order to maximize decentralization and reduce the risk of network damage in case of natural or man-made disasters.

• The decision is made by a simple majority of Photons with a quorum [majority of given Photons +1%] of the total number of voted Photons.
• If two options have the same number of Photons, the proposal is sent to the BRANCH responsible for the proposal for revision.

COORDINATION BRANCH may veto and stop voting on any proposal if it deems it harmful or controversial. After that, the proposition must be reworked and voted on again.

Every Magonian can create a soft proposal and pass it to the chosen BRANCH.

OS DAO can change the quorum and other parameters of the voting system.

An additional measure to encourage the participation of Magonians in voting (or delegation) is the raffle (sweepstakes) system where everyone who votes or delegates their Photons receives an NFT ticket that allows them to take part in the lottery with prizes in the form of Neutrino (funded from the treasury via proposal).

After successful completion of the tests and background checks, new candidates will be allowed to create their own proposals, participate in voting, and take an active role in the DAO community.

A system for developing metrics is the BSC. Traditional performance metrics provide information about an organization's past performance. BSC, on the other hand, can better predict future results or how well the strategic plan is being executed. The BSC process is a continuous iterative process that focuses on internal processes and external outcomes. Systemic control is based on performance measures that are continuously tracked over time to identify trends, best and worst practices, and areas for improvement.

SMART (Smart, Measurable, Attainable, Realistic and Timely) test must be taken to determine the metrics:
• Is the metric objectively measurable?
• Does the metric include a clear statement of the end results expected?
• Does the metric support member requirements, including compliance issues where appropriate?
• Does the metric focus on effectiveness and/or efficiency of the system being measured?
• Does the metric allow for meaningful trend or statistical analysis?
• Have appropriate industry or other external stands been applied to the metrics?
• Does the metric include milestones and/or indicators to express qualitative criteria?
• Are the metrics challenging but at the same time attainable?
• Are assumptions and definitions specified for what constitutes satisfactory performance?
• Have those who are responsible for the performance being measured been fully involved in the development of this metric?

BSC provides a view of the organization from four perspectives:
1. The user (the voice of the customer/participant)
2. Financial goals
3. Internal processes
4. Changes and potential for growth

From each of these four perspectives, it must define its strategic goals. Then identify the three or four elements that are measured for each goal, and determine the target value that each indicator seeks to achieve. Finally, Magonia must identify the initiatives it will take to achieve those goals. BSC relies on a clearly defined strategy and understanding of the relationship between goals and initiatives. Magonia should identify both past and lagging indicators that can be used as a measure of future performance. Finally, Magonia should identify those metrics that are best suited to their goals rather than simply adopting any other organization's successful metrics.

SMART (Smart, Measurable, Attainable, Realistic and Timely) test must be taken to determine the metrics:

For the most accurate measure and more fairly reward participants' contributions at the Regional Governing Council (RGC) level, Magonia should use modern Web3 tools such as SourceCred. This tool helps measure the quality of interaction in DAOs through its technology, which makes people's labor more visible and rewarding when they work together on a project or community.

SourceCred uses an algorithm to determine how much value or contribution a participant has made to the project as a whole. When a participant contributes, SourceCred's goal is to "see" that contribution and assign him or her a number of "Cred" depending on the value he or she has contributed to the project as a whole.

The algorithm uses what we call "weights," which are a set of rules that indicate which types of contributions are worth a certain amount of Cred. The weights for allocating Cred are determined by each Magonia region individually, giving each Magonia region the ability to decide what it values and what actions support those values as it works together to create something. Each region using SourceCred can decide for itself what is valuable and worthy of Cred and what is not.

The KPIs or Cred of each resident of Magonia are also registered in his multi-passport, and so he can apply these KPIs in any other country, if it does not contradict the laws of that country.

A Cred on its own can be a good signal of what is valuable and who is really doing the work for the success of Magonia, but it's hard to pay the rent or buy lunch with a Cred account. That's where "Grain" comes in.

A "Grain" is the digital currency for a particular Magonia region (or a common currency for all regions) that is minted and issued to residents who have a Cred in that region. As residents earn Cred, they also earn Grain. Unlike Cred, Grain is a form of currency that can be transferred both within and outside of the Magonia region.

Prior to launch, smart contracts must be thoroughly tested to identify bugs, vulnerabilities, and risks before the code is deployed and used on the main network, where it is no longer subject to change.

Auditing smart contracts early in the development lifecycle prevents potentially catastrophic post-launch vulnerabilities. The engineering team for the design and development of the DAO should be tasked with overseeing the execution of smart contract audits. The main means by which problems in contracts are identified:

Tests:
Unit tests or unit testing - testing individual parts of the contract.
Regression testing - running the same tests on previously tested code, after the code has been changed. Rerun tests after changes.
Integration tests are tests for the interaction of modules and the system as a whole. This is contract interaction testing.
Formal testing — testing a smart contract for compliance with the documentation.

Audit:
Audit by a third party developer. In addition to the main developer, the contract is also checked by the auditor developer.
A bug bounty is a scheme in which code is posted to a git repository and everyone who wants to contribute is welcomed to find bugs for a reward (usually tokens).

It should be noted that it is impossible to cover everything with tests. Therefore, when creating a contract, one must follow the recommendations for writing secure code. But in general the implementation of the recommendations does not relieve you of all errors, but only reduces the likelihood of a successful attack on your contract. A large, full audit of solutions is impossible without experienced developers who are able to check the high-level logic of contracts, its lifecycle, aspects of real operation and compliance with the task, and not just typical attack patterns.

Through voting by our DAO team, it is necessary to select external teams that already have extensive experience in auditing smart contracts. This will save time and financial resources and eliminate the risks of abuse within the DAO. Security Audit provides detailed analysis of DAO smart contracts to protect funds. Since all transactions in the blockchain are finite, it is impossible to return funds in case of theft. Minor coding errors can lead to huge amounts of money being stolen. For example, the DAO hack on the Ethereum blockchain took approximately $60 million in ETH and even led to a hard fork of the Ethereum network.

Auditors study the code of smart contracts, write a report and submit it to the DAO team. An audit usually includes four steps:
1. The audit team conducts an initial review of smart contracts.
2. The results of the analysis are provided to the DAO team for action.
3. The DAO team makes changes based on the issues found.
4. The audit team issues a final report, taking into account new changes and remaining errors.

Since blockchain transactions are irreversible, it is necessary to ensure that the smart contract code is secure. The nature of blockchain technology makes it difficult to extract funds and solve problems after the fact, so it is better to prevent vulnerabilities at all costs.

The approaches of audit firms may vary, but a typical audit looks like this:
1. Determining the scope of the audit. Smart contract specifications are determined by the purpose of the project and the overall architecture. The specification helps the audit team understand the goals of the DAO when writing and using code.
2. Appointment of the initial price depending on the amount of work.
3. Examination. The tools and methods of verification depend on the audit team. Usually automatic and manual checks are used.
4. Creating a draft report with the bugs found and providing it to the DAO team to correct them.
5. Publication of the final report, taking into account all the actions taken by the team to solve the problems encountered.

The report is provided at the end of the audit. Most reports categorize problems by severity: critical, major, minor, and so on. The report also indicates the status of the problem, as the project team is given time to resolve it before the final report is published. In addition to general conclusions, the report usually contains recommendations, examples of redundant code, and a full analysis of coding errors.

Task groups are created within each department of the DAO. And any new proposals, before being voted on, come to these working groups for verification (audit).

The purpose of the audit is to check one or another proposal for non-conflict (compliance) with the main goals of the DAO. The audit should check the current and new proposed KPIs (metrics of success) for compliance with the goals of the DAO. This means to decompose the main measurable goals of the DAO into component indicators (low-level).

Also, the audit should be carried out not only on new proposals, current tasks, new and old KPIs, but also on the organizational structure of the DAO (it must correspond to the goals of the DAO). This means that each Department of the DAO must have goals consistent with the global goals of the DAO. Periodically needed to revise the structure of the DAO, KPI and rebalance the indicators (Balanced ScoreCard).

Node monitoring: health, performance, fault tolerance. Finding out which nodes meet the requirements and which do not.

The network infrastructure must remain operational in the event of node failure (in the event of cataclysms) and adapt when loads change. Incorrect operation or insufficient performance of individual components can adversely affect the efficiency of the infrastructure as a whole. These problems appear due to incorrect distribution (leased servers are in one place) and incorrect use of hardware resources.

It is necessary to constantly evaluate the load of working nodes, evaluate their UpTime. However, that requires developing a single control panel grouped by priorities. This panel should continuously monitor the network without user intervention. This will reduce security risks, optimize resource usage, and ensure fault tolerance and performance.

We propose developing a smart secretary-bot that will deal with correspondence within the DAO and beyond. The digital bot is engaged in sending letters, requests redirection, performer selection, and so on. The major problem of many organizations is long correspondence and loss of messages. Thus, the bot will identify requests, determine the participant and address the message to him independently. The library and a link to the community data archive can be also included in order to restore the chronology of events. The bot will contain a database of addresses, email templates, various affiliate programs, a mailing service, and so on.

A DAO portal is a web interface that gives participants access to community data. The corporate portal is our "virtual community" that allows participants to share, add, change, delete information and documents, and most importantly – work together. This new system must have the ability to create task trackers and calendars.

Task trackers are services for co-working. They are also used by the participants who organize their own work. With their help, one can set tasks and deadlines, control the process, and conduct internal correspondence. Therefore, it is possible to create business processes which will provide an opportunity to track the stage of the business process, its performers, and decisions taken on it.

Schedules are logical-structural documents that determine:
• the beginning and the total duration of the project and its individual stages;
• the order and completion period of special events in the project;
• the logical sequence and interdependence of activities;
• the complete list of planned project activities.

We propose to develop such a corporate network. Corporate portals like Slack or Asana are examples of such networks. This network will allow publishing news, communicating, creating business processes and calendars, as well as monitoring these business processes, reviewing the labor costs reports.

DAO members should be allowed to determine their working hours, because they are the lifeblood of this DAO. Deadlines can be set in DAO task trackers. Sometimes a DAOist can and should switch roles in order to learn how to support each other in difficult times. The members should feel like part of the DAO. Thus, the awareness of participants will increase and turnover will decrease.

Governor DAO together with Finnovant created a No-KYC Proof-of-Existence whitelist for unique identities with the purpous to build a universal sybil defense. The used technology can determine uniqueness of the user: "Using Finnovant's first-of-its-kind authentication technology, Say-Tech, users sign in with their Ethereum wallet to the web portal on Governor DAO's website. A camera and microphone is used to scan the user's face as they read a sentence. Privacy and security are paramount to both teams. No one can access the camera and microphone output but the owner. The information is checked against 400+ indicators and immediately encrypted into a unique hash. Thus, sensitive information is protected and it cannot be replicated. The hashes work similarly to public-private key pairings: even if one knows the hash (public key) they cannot decode the raw information (private key). Even if the user accesses the portal from a different location, device, under different lighting, the technology determines whether the user is unique. Users qualified as "unique" receive a non-transferrable ERC20 "Proof-of-Existence" token. The token is attached to the wallet permanently. Developers who want to reference this whitelist add a requirement that checks for ownership of this Proof-of-Existence token by the wallet interacting with the contract."

DAO administration is aware of the number of members in the system. So, in the case of the OS DAO, the whitelist is a list of each country's citizens. When citizens of Magonia come to the polls they provide their identity card. Here everyone has a unique hash, the authenticity of which can be verified by the zero-knowledge proof. With this in mind, we see PoE as a preventive security measure in the form of an auxiliary tool that affirms the uniqueness of actions and doesn't require KYC. In simple words, Magonia residents are the whitelist.

Each resident, in order to be able to perform any actions, once passes authentication, is qualified as "unique" and receives something like a multi passport (non-transferable ERC20 token), which is tied to only one wallet and one person and provides information on the user's actions. Each time a certain action is taken, they provide the multi passport and undergo additional instant verification (such as retina detection). Whitelisted accounts further serve as a fallback position: e.g. Colony uses multiple whitelisted accounts as a recovery mode to protect against malicious editing. (https://colony.io/whitepaper.pdf)

There is another option: Humanode proposes a sybil defense solution as it is privacy-preserving, self-sovereign, and Sybil-resistant at the same time. Humanode co-founder Dato explains: "Humanode combines state-of-art liveness detection protocols, FHEd multimodal biometric processing with constant proof-of-existence, special validator admission protocols, reliable devices and recurring costs to create a robust Sybil-resistance that would safeguard the system from spoofs and bypasses committed by bad actors." (https://blog.humanode.io/attack-on-sybil/) That is, in our case, an additional instant check before each vote/delegation, that does not need a third party as KYC is excluded.

As with every whitelist strategy there is the flip side of the blacklist implementation. Bad actors across blockchain are out of control and their number is constantly increasing. Defending against these attacks can be prevented by adding bad actors' wallets to the blacklist. The identification card inside the entire blockchain system contains information about persons refused entry to different countries. Hence the architectural complexity of the system will be prevented by maintaining a bunch of "black" or "gray" lists, and the identification cards of Magonians will be available for inspection, taking into account data increases. With the ID card it will be possible to vote in another country, if it is not against the laws of that country.

A pre-vote sorting mechanism is a way to protect against bad actors. Proposals can only be voted on when they have a certain level of support: a certain percentage of the total votes must be reached. What experience do DAOs have with voting outcome thresholds? For Michael from Curve a quorum-based voting makes sense, a large majority of proposals got through at Curve DAO. The negative impact lies in a chance of tactical voting. Clement from Kleros comments: "In a quorum vote, those who oppose the proposal will usually abstain rather than vote against it because it is more likely to prevent it from passing." ( https://coinyuppie.com/summary-of-optional-daos-voting-mechanisms/) The voting threshold for admitting voting candidates should be high enough to prevent manipulation, but optimal for fair competition and dynamic voting.

Establishing a "leading board of governance" is the easiest option is to disqualify bad actors from voting and being elected, while also keeping them members of the DAO without the right to be a candidate for the management of the DAO. From the citizens' point of view, withdrawal of a part of the blocked "MagoniCoin" from those who have staked the token / have voted (except for additional tokens, such as wages) disqualifies them from capitalizing.

The core concept is a mechanism for delegating one's Photon (governance token) to a competent party (Illuminated), that has high reputation and makes decisions in the DAO. The main advantage of this approach is the balanced cooperation of DAO participants, achieved by including Illuminated and all SOLARTREE members in a set, which enables participants to be directly involved in management. Hence, the mechanism is workable and guarantees successful functioning of all elements of the DAO (inactivity and loss of reputation results in the exclusion of participants from managing due to the lack of the required number of Photons), besides, instant fixation of voting results guarantees honest and qualified candidates whose policies reflect the opinion of the electorate. The Solarpunk DAO contains an inflation mechanism for the main financial token Neutrino, which ensures the full presence and involvement of all Magonia residents. To ensure continual activity of the decentralized infrastructure, an incentive system for validators has been developed, which stimulates them at all levels including network commissions; and linear mechanism for increasing the number of nodes depending on the capacity and bandwidth required. Thus, the key points in the OS DAO are: Magonian's reputation, knowledge and skills in certain areas, and social activity.