Our path towards community decision making and empowerement
As the Moss project advances, we will aim to decentralize it as much as we can. We have thus created the MOSS token — the governance token of the MOSS Protocol — which allows those who hold it to comment, participate in discussions and vote on changes to the MCO2 token and new protocols. Note that anyone, not only MOSS holders, can submit proposals on our forum for a discussion and subsequent snapshot vote. Our goal is to avoid or minimize dictatorial or unilateral decisions by Moss management, and to promote a higher engagement and legitimacy of the decision making, leading to a more collaborative governance process.
The main decisions made by Moss management concerning the MCO2 token currently involve:
- Carbon credit acquisition and tokenization (minting of new MCO2 tokens)
- Hiring of auditors
- Strategic partnerships for distribution
- Support of one or two way tokenization bridges and DAOs
- Hiring of market makers and listing in new exchanges
A peculiar asset class that requires much community engagement and self education
First and foremost, we want to emphasize that carbon credits are assets that exist independently of Moss. The MCO2 token is an asset / utility token, thus, it is a digital certificate that has an off chain ledger behind it. It works much in the same way as a commodity token, like a gold token. Altering the quantity of a certain gold token does not alter the value of gold, as there will be physician gold working as ledger and guaranteeing the value of each token, and as the tokenized quantity is infimal relative to the size of the overall gold market.
One must think of tokens for tokenized assets as “digital certificates” and not as coins. The tokens here represent the asset, and do not serve any financing function. Thus, issuing more tokens does not funnel money to the founders or project controllers, but rather serve to facilitate transactions between asset owners.
The MCO2 token works the same way. We have noticed anxiety concerning the fact that there is no official maximum supply for the MCO2 token. But the maximum supply concept does not apply to the MCO2 token, as it is NOT a project token. Issuing more MCO2 tokens is not inflationary, as Moss needs to buy off chain carbon credits to work as ledger. If Moss issues 3 million more MCO2 tokens (doubling current supply), it does not mean that the market cap will stay equal or that this addition will be inflationary and thus force prices to fall 50%.
Rather, it means that Moss has necessarily acquired 3 million more carbon credits, and thus the number of carbon credits (and ledger) has doubled, leading to a doubling of the market cap. In fact, the overall 3 million supply of MCO2 tokens is equivalent to 1% of the global carbon credit market. Doubling the token supply would lead to a 1% increase in overall global market supply of the asset, thus not impacting demand / supply dynamics (and thus price) significantly.
There are very few asset tokens in the market, so this is counter intuitive to most tokenomics generally known, and, since most crypto buyers are individuals, this has led to some confusion. We expect that, by establishing a governance structure and supply addition rules, we can bring clarity to this market cap and supply dynamics.
- 1.20% development team and internal Moss team
- 2.10% Moss equity holders and partners
- 3.25% liquidity mining (50% polygon 25 % Ethereum 25% Celo)
- 4.5% community (discord and telegram, twitter) for 1,000 users
- 5.10% holders, 0.1 per token held
- 6.20% DAO treasury
- 7.5% Klima Treasury
- 8.5% Klima/MCO2 liquidity mining
Total amount tokens minted will be the total amount of mco2 (3,041 millions) tokens created as of February 1 2022.
Moss Holders can decide and participate on:
- New minting of carbon credits
- Projects that can be added as suppliers (must pass on due diligence first from our technical board)
- Process decentralization (minting, auditing, improvements, protocol upgrades)
- New partnerships
- New registries to be added
- The holding of crowdfunding to buy carbon credits and tokenize (community batch mints). [Note that the Moss token IS NOT used for the crowdfunding, but for the DECISION to hold a crowdfunding event or not]
Introducing Community Batch Mints (CBM) and Community Backed Projects (CBP)
MOSS token holders will have the opportunity to invest in wholesale carbon credits purchases, where projects that passed our due diligence can offer their supply and token holders can buy at wholesale prices on a minimum batch (Community Batch Mints). Token holders will also be able to join CBP (Community Backed Projects), via crowdfunding vehicles and mechanisms. The idea is for the community to benefit from Moss’ access and preferential terms.
Legal viability of the process will be studied in future.
Current Governance Process
The official communication vehicle will be the channel on Discord, the telegram group will be closed.
Discord will serve as the primary informal medium for the Moss community discussion. There are a wide variety of standing text channels, covering everything from detailed technical discussion in #policy-forum
The Moss Discord server is regularly trafficked by core team members and contributors, who relay messages from the community to the relevant departments or other core team members as necessary. There is a dedicated channel for feedback and suggestions that is monitored by
any server member is free to ask questions either via voice or in text chat for as long as time allows.
The Moss Forum is the hub for more formal discussion and debate. Request for Comment (RFC) periods begin here, where people can make their thoughts heard on the latest Moss Improvement Proposals (MIPs). An RFC can originate internally, from a community member, or from third parties such as new carbon bridges who wish to integrate into the Moss ecosystem.
After the RFC, if the community is on-board with the proposal, a formal MIP will be drafted by the policy team, which will be posted on the forum with an informal poll — acting as a temperature check to suggest if the proposal may need alterations or further discussion.
Note: The community as a whole can post MIP temperature check votes in the “Proposals” section of the forum. Anyone can open a general discussion topic or post an RFC in the “General” section.
After passing the informal poll on the forum, official MIPs will be published on Snapshot by the core team for a formal, on-chain vote by MOSS token holders.
At the time of writing, voting power on Snapshot is determined by the amount of MOSS owned in a one-to-one ratio. Note that not all actions are subject to a MIP vote.
In the event that the policy team or core team wishes to reserve a new power, such that a MIP vote is not required for a specific action, this change will itself be subject to a vote.
As KlimaDao founders wrote, we believe that “decentralization is a spectrum rather than a binary.”
“Few, if any, Web 3.0 institutions begin fully decentralized, and Moss is no exception. Decentralization is a journey, an ideal that Moss must strive toward.”
One potential issue with limiting MIP publication to the Core team and Moss departments is that the voting process can turn into a “rubber stamp” of changes planned centrally. Over time, our goal is to decentralize as many governance functions as possible, to minimize any dictatorial power exerted by the Moss contributors or core team and ensure that votes are meaningful.
However, not all governance functions are amenable to the same systems — for instance, one-to-one token voting can be gamed via bribes or exploited by whales to benefit themselves at the expense of the protocol. Likewise, opening up publication of MIPs on Snapshot to any holder of Moss could turn Snapshot into a sprawling mess of poorly structured proposals.
As we work to decentralize more aspects of the protocol, we will research best practices and seek community input on the optimal governance system for each function.
A potential solution to responsibly decentralize MIP publication rights is a “stewardship” model, where representatives are elected by token holders to a committee that has publication rights to Snapshot, controlled by a dedicated multisig that requires some level of consensus among the elected representatives before the proposal is published. We promise to adjust the decision model as it evolves.
NOTE: Adapted from KlimaDAO's Future Vision for Decentralized Governance: https://docs.klimadao.finance/dao/governance-framework#future-vision-for-decentralized-governance