The Three DAOs: Specialized Governance Bodies

Circularity Finance's governance is organized into three distinct DAOs, each with specific responsibilities and domains of authority. This specialization allows for more focused, efficient governance while ensuring all aspects of the ecosystem receive appropriate attention.

CIFI DAO: Strategic Direction and Protocol Governance

The CIFI DAO focuses on the core protocol and strategic direction of the ecosystem:

• Primary Responsibilities:

  • Strategic roadmap development and approval

  • Core protocol upgrades and parameter changes

  • Treasury management for foundational development

  • Cross-chain deployment and integration decisions

  • Ecosystem partnerships and strategic alliances

• Membership and Structure:

  • Governed primarily by CIFI VIP NFT holders

  • Weighted voting based primarily on CIFI token holdings

  • Technical council for evaluating protocol changes

  • Strategic committee for evaluating partnerships and roadmap

  • Treasury committee for financial management

• Decision Types:

  • Protocol parameter updates

  • Major version upgrades

  • Strategic initiative funding

  • Core team mandates

  • Legal structure and compliance approach

The CIFI DAO essentially functions as the "constitutional body" of the ecosystem, making fundamental decisions about the direction and structure of Circularity Finance.

REFI DAO: Application Layer and Utility Governance

The REFI DAO focuses on the application layer and utility aspects of the ecosystem:

• Primary Responsibilities:

  • Application feature prioritization

  • User experience improvements

  • Utility token distribution and incentives

  • Fee structures for ecosystem applications

  • Integration with external applications and services

• Membership and Structure:

  • Open to all REFI token holders

  • REFI Governor NFT holders have proposal rights

  • Application-specific sub-committees

  • User experience working group

  • Incentive design specialists

• Decision Types:

  • Application feature approvals

  • User incentive programs

  • Fee adjustments for specific applications

  • Integration priorities with external services

  • User experience guidelines and standards

The REFI DAO functions as the "user parliament" of the ecosystem, ensuring that applications and services meet the needs of actual users rather than just theoretical specifications.

RWA DAO: Real World Asset Management

The RWA DAO focuses specifically on the management and governance of real-world assets within the ecosystem:

• Primary Responsibilities:

  • Real-world asset tokenization standards

  • Valuation methodologies for diverse asset types

  • Due diligence procedures for asset onboarding

  • Risk management for real-world asset exposure

  • Legal compliance for tokenized real-world assets

• Membership and Structure:

  • Requires specialized RWA Governor NFT

  • Domain experts in various asset classes

  • Legal and compliance specialists

  • Valuation committee

  • Risk management working group

• Decision Types:

  • Asset onboarding approvals

  • Valuation methodology updates

  • Risk management parameter adjustments

  • Collateralization ratio changes

  • Asset performance monitoring thresholds

The RWA DAO serves as the "asset management board" of the ecosystem, ensuring that real-world assets are properly evaluated, managed, and integrated into the broader financial infrastructure.

Inter-DAO Coordination

While each DAO has its specialized domain, many decisions require coordination across multiple DAOs:

• Joint Proposals: Some proposals may require approval from multiple DAOs, particularly those that span domains of authority.

• Escalation Procedures: Conflicts between DAOs can be escalated to joint committees or special resolution processes.

• Resource Allocation: Treasury resources may be allocated through coordination between DAOs based on strategic priorities.

• Shared Roadmaps: Development roadmaps are coordinated to ensure alignment between protocol, application, and asset management priorities.

• Cross-DAO Working Groups: Special initiatives may form working groups with members from multiple DAOs to address complex challenges.

This coordination ensures that while specialization improves efficiency, the ecosystem maintains coherent direction rather than fragmenting into competing priorities.