Decentralized Organization’s (aka DAOs) have been over simplified to date. On the surface they may look simple, but there are many more factors that go into a DO and the infrastructure required to run one securely. The path from no token to a functioning and secure Decentralized Organization is anything but simple, especially when trying to act within the confines of very grey and unknown regulations.

With all the recent press on Solana DOs, we wanted to create and share more public documentation of decisions made to date and a roadmap to get to true decentralization. To avoid reader paralysis we have omitted packing the nitty gritty details about governance parameters in this document. Additional information can be found on the docs site.

Problems to consider

1. What does fully decentralized truly mean?
2. How do you get initial token supply out there, without putting core contributors at present or future regulatory risk?
3. How do you construct a new SPL Governance DO, such that it is fully decentralized?
4. How can protocols be securely owned by the DO? How can critical security updates be made without public attention prior to the patch?

Full Decentralization

Full decentralization, as used in this document, means governed assets cannot be acted upon (transferred, changed, etc) without consensus from a distributed and diverse group of individuals/entities. Distributed and diverse encompasses geographical and geo-political diversification to avoid singular domicile risks.

Put simply, no individual person or company can control the DO or its assets.

Where is the PSY DO currently?

Initial Token Launch

The PSY token was launched via (extremely successful) IEOs on FTX and Gate. With an additional primary listing on AscendEX. But when we think about on-chain governance, IEOs probably are not the best method to get the tokens out there.

1. There are additional steps DO members must then take to get tokens off of the CEX and into the governance protocols.
2. Depending on the IEO structure, many IEO participants may be there to snipe quick profits (especially in a bull market) and may not be long term holders.
3. Centralized exchanges tend to limit the supply you can sell, when compared to an IDO

The IEO initial distribution method was chosen to ensure there were proper KYC processes and to limit core team risks. Removing these concerns and acting within the best intentions of current and potential future policies will set the DO up for long term success. These decisions are not easy as they create significant barriers in the short term.