📃The Constitution of the DAO

The full Constitution can also be found via this link.

  1. Introduction

  2. Reform's Driving Force

    1. Activities of Reform

    2. The mission of Reform

    3. The vision of Reform

    4. The principles of Reform

  3. The organizational structure
of Reform

    1. Hofida Limited

    2. Purpose trust

  4. The RFRM token

    1. The basics

    2. The purpose and utility

    3. Staking

  5. Governance

    1. $eRFRM

    2. Transparency

  6. Treasury management

    1. Reform’s treasuries

    2. Reform’s multi signature wallets

    3. Hofida Limited’s multi signature wallets

    4. Token flow structure

  7. Discourse forum

    1. What is Discourse

    2. Overview of Discourse

    3. Advancing to IPR

    4. Moderators of Discourse

  8. Proposals and votes

    1. Conditions

    2. Duration

    3. Quorum

    4. Voting

  9. Amendments to the constitution

Introduction

The constitution, as embraced by the token holders, solidifies the rules and objectives governing the Reform DAO. Within this document, the governance framework, including the IPRs (Improvement Proposal to Reform) and actionable measures, are meticulously outlined. It is crucial to emphasize that decision-making processes through platforms like Discourse and Snapshot hold significant weight, as they shape the trajectory of Reform's governance.

The Constitution document aims to: 



  • 
Articulate the core values and principles that underpin the governance of Reform.

  • Establish a comprehensive, well-structured document that oversees the governance framework without any centralized authority exerting control.

  • Formalize a transparent, well-defined document that clearly delineates where authority lies within the Reform ecosystem.

  • Safeguard the rights of token holders, ensuring clarity regarding which rights are reserved for them and guaranteeing their ability to contribute their voice to the entire ecosystem.

  • Provide a comprehensive understanding of the delegation of powers for community members, contributors, and core contributors, outlining their respective roles within the Reform governance layer.

  • Enable decisions to be made based on accurate information, expertise, and efficiency. Create a transparent document elucidating the governance mechanisms employed by Reform and illustrating the interconnectedness of token holders with the entire ecosystem.

  • Ensure that Reform maintains its full decentralization, autonomy, and operational efficiency across all its activities.

The Constitution is embraced by the Token holders, serving the best interests of Reform DAO, and can solely be modified by the Token holders as explicitly outlined within.

Reform's Driving Force

Activities of Reform

The activities are as follows:

  • Providing liquidity to both centralized and decentralized exchanges that use order books.

  • Offering specialized market making services to projects requiring support and guidance throughout their market making process.

  • Actively promoting and growing the DAO treasury to ensure its longterm sustainability.

  • Generating value through liquidity provisioning by earning rebates and realized profits, alongside revenue from designated market making from loan options and retainers. Net revenue is strategically allocated toward $RFRM buybacks, replenishment of the bonding treasury, coverage of operational expenses, and the exploration of new opportunities.

  • Developing the LuigiBot as the first Telegram bot with built-in grid trading functionality.

  • Strengthening the overall DAO treasury through strategic grid trading and consistent revenue generation from LuigiBot operations.

  • Proactively seeking strategic partnerships that support LuigiBot’s growth and align with Reform’s mission of reshaping the market making industry for the better.

  • Hosting Paul’s Penthouse, a weekly Twitter Space that expands awareness of Reform and its ecosystem, while serving as a platform to highlight market trends, partner projects, and Reform’s role in the evolving market making landscape.

  • Curating guest speakers and topical discussions within Paul’s Penthouse to drive deal flow, elevate partner visibility, and position Reform as a thought leader, reinforcing the DAO’s market presence alongside tools like LuigiBot, Novus, and the Academy.

  • Operating Novus, an incentivized quest platform that rewards participants for completing social media and community engagement tasks, thereby expanding awareness for Reform and its market making partners.

  • Expanding the Reform Academy as an open educational hub to deepen understanding of crypto fundamentals, market making mechanics, and partner project ecosystems, strengthening user alignment and amplifying Reform’s service offerings.

Reform possesses the authorization to partake in all the aforementioned activities. In the event of introducing new activities, their inclusion will be determined through a governance voting process.

The Mission of Reform

Reform’s mission is to revolutionize the market making industry by creating community-driven liquid markets across exchanges using protocol-owned liquidity. By replacing the traditional mercenary market making model, it aligns with the incentives of all stakeholders. Protocol, Community, and Market Maker to foster transparency, fairness, and retail liquidity in a more sustainable and equitable ecosystem.

The Vision of Reform

Reform envisions a future where market making is transformed through decentralized, protocol-owned liquidity, making the process transparent and inclusive. Reform DAO aims to set a new standard by creating community-driven markets that ensure fairness, aligns stakeholder interests, and deliver long-term value for all participants, fundamentally democratizing and enhancing the sustainability of liquidity provision.

The following principles apply to Reform

  • Transparency and Fairness Reform is committed to creating an open and fair market making environment where all participants have equal access to liquidity. Transparency in our operations and decisions ensures that stakeholders are well-informed, fostering trust and longterm engagement.

  • Community-Driven Liquidity We believe in empowering the community to play an active role in liquidity provision. By utilizing protocol-owned liquidity, we promote decentralized and community-driven markets, creating a more inclusive and resilient ecosystem.

  • Stakeholder Alignment Reform aligns the interests of all stakeholders, protocols, market makers, and the community. We ensure that incentives are shared equitably, driving collaborative efforts toward market stability and mutual success.

  • Sustainable Market Growth Our approach focuses on long-term growth, not short-term gains. We actively promote the growth of the DAO treasury and reinvest net revenue into operations, development, and new opportunities to ensure the sustainability and innovation of our market making activities.

  • Innovation and Guidance Reform offers specialized market making services, providing support and guidance to projects in need. Through expert advisory and customized solutions, we help projects optimize their market presence and liquidity strategies.

  • Proactive Partnership Development We seek out strategic partnerships with projects and entities that share our mission to reform the market making industry. By forming alliances that support our vision, we aim to create greater impact and accelerate the adoption of more transparent and inclusive market making models.

  • Ethical Profit Generation Our profit-generation model is fully based on ethics and fairness. By focusing on liquidity provisioning, designated market making and aligning with community interests, we generate net revenue that is reinvested into protocol growth and buybacks, ensuring the DAO’s stability and longterm viability.

  • Continuous Innovation We embrace research and development as key drivers of growth and adaptation. Through continuous exploration of new liquidity solutions and market making innovations, we stay at the forefront of industry transformation.

  • Full Transparency in Treasury Management All decisions related to the DAO’s treasury will be transparently documented, with trade activities clearly displayed on a public dashboard. This ensures the highest level of accountability and openness, fostering trust among all stakeholders.

  • Respect for Community Voice and Fair Reward Every community member has the right to voice their opinions, and all viewpoints will be treated with respect. Contributors will be fairly rewarded for their efforts, recognizing the value they bring to the DAO's success.

  • Adherence to Constitutional Guidelines All activities undertaken by Reform must strictly align with the requirements outlined in the Constitution, ensuring that every action upholds the values and principles of the organization.

  • Collective Well-Being Over Individual Interests The well-being of the DAO as a whole always takes precedence over individual gains. Every decision and action is made with the collective benefit of the community and organization in mind.

The organizational structure of Reform

Hofida Limited

HoFiDa Limited (HOF) plays a crucial role in the operational structure of Reform DAO by collaborating with core contributors and subcontractors to manage the DAO's day-to-day activities. In this capacity, HOF holds and manages assets on behalf of the DAO, ensuring operational efficiency. It also oversees and manages the DAO’s official social activities and communication channels, utilizing designated accounts to generate and distribute content that reflects the DAO's mission and values. While HOF handles these important operational functions, its shares are owned by a trustee under the Reform DAO Purpose Trust, ensuring that the DAO retains ultimate ownership and control over HOF, including the ability to manage permissions for all accounts associated with the entity.

Purpose Trust

itself is a specialized legal entity designed to hold the shares of HOF for the benefit of the DAO. Unlike traditional trusts, which are typically established to benefit individuals or charitable causes, a Purpose Trust exists to fulfill a specific non-charitable goal in this case, the operation and support of the DAO. One key feature of a Purpose Trust is that it requires an enforcer, an individual or entity responsible for ensuring that the trustee carries out their duties in accordance with the trust's guiding instrument. The enforcer monitors the trustee's activities, ensuring that trust assets, such as HOF shares, are managed and used appropriately. If necessary, the enforcer has the authority to take corrective action to ensure that the trust's purpose and the DAO's interests are upheld.

The RFRM token

The basics

The supply structure of $RFRM is strategically designed to foster a sustainable and evolving ecosystem that promotes the DAO's prosperity. To ensure long-term viability, emissions will be meticulously planned, distributed over an extended duration, and supported by Net Revenue. Notably, $RFRM has a capped supply of 1 billion tokens, further emphasizing the focus on maintaining a controlled and balanced ecosystem. More information about the token structure can be found here. Following IPR 3.2, a total of 472 million tokens were permanently burnt, reducing the total supply to 528 million. As no more than 1 billion tokens can ever be minted, this burn is irreversible, burnt is burnt forever.

The purpose and utility

$RFRM plays a central role within the Reform DAO ecosystem, acting as the foundational token that powers a growing suite of projects built by Reform. It enables community-owned liquidity through targeted fundraising efforts and is used within LuigiBot to unlock lower fees, advanced features, and exclusive perks via staking. In initiatives such as Novus and the Reform Academy, $RFRM functions as a reward token, incentivizing meaningful engagement. As the core asset of the DAO, $RFRM unlocks access, utility, and alignment across the broader ecosystem.

$RFRM offers the following utilities within the ecosystem:

  • Value Accrual: Buybacks of the token using Net Revenue.

  • Staking: Stakers can earn rewards in $RFRM, receive additional rewards from protocols for which Reform DAO provides market making services, and gain voting power across the entire ecosystem.

  • LuigiBot: Gain access to discounted fees, boosted referral income, early access to unreleased features, and advanced perks within the LuigiBot ecosystem.

Staking

$RFRM incorporates a staking mechanism that rewards dedicated holders invested in the ecosystem's success. Stakers can choose flexible durations and lock-up periods ranging from one to five years, with longer commitments earning higher returns. This system promotes long-term staking and secures voting power within the DAO. Staking rewards are distributed daily from the Staking Treasury, which, after IPR3.2, holds 25 million tokens. A total of 0.05% of all tokens are allocated to stakers, with the constitution ensuring sustainability through a logarithmically decreasing distribution of rewards each year.

Governance

$eRFRM

Reform embraces a governance system fully operated through the smart contract. This system finds its support in the governance token of $RFRM, known as $eRFRM, which can only be acquired through staking $RFRM in the single side staking pool. With the aim of enabling collective decision-making, the governance system grants complete control to the token holders. Voting takes place on Discourse and Snapshot platforms. It's important to note that being a (staking) token holder grants the ability to vote, but it does not confer individual authority or ownership over the Reform DAO.

The maintenance and development of Reform are carried out by token holders, the smart contract, and dedicated (core) contributors. Core contributors are expected to operate transparently, keeping token holders well-informed about activities and progress. This ensures that token holders can vigilantly oversee the core contributors' actions and respond accordingly if necessary.

Transparency

Transparency remains a top priority for Reform concerning trades executed through Market Making and the accountability of contributors. Contributors who are engaged may receive compensation in $RFRM from the Operations Treasury or in Revenue from the Market Making Algorithms. Reform may allocate budget for hiring new contributors and compensating them based on the tasks performed.

Treasury management

Reform’s Treasuries

The Reform ecosystem is built upon treasuries, smart contracts, and multi-signature wallets, designed to support, expand, and safeguard both the treasury and the broader ecosystem.

Within the Reform DAO token framework, several smart contracts are deployed. These contracts are integral to user interaction and the management of $RFRM tokens. Interaction with these smart contracts is restricted to their respective owners. The following smart contracts are currently deployed under Reform:

  • RFRMBonding Also known as the Bonding Treasury, this contract is the engine driving the ecosystem. It generates liquidity by selling locked $RFRM at a discount in exchange for $ETH, $USDC, and $USDT.

  • RFRMStaking This contract holds $RFRM tokens acquired through bonding that are locked, which are automatically staked for rewards and governance purposes. Tokens purchased from exchanges can also be manually deposited into this contract by their holders.

  • RFRMVesting This contract manages tokens that have been claimed but are subject to a one-year lock-up period before rewards can be accessed.

  • ReformDAO - Vesting portal This contract manages tokens that are currently vesting and has strategies for all vesting durations. Reform cannot change vesting strategies.

  • LuigiBot - Treasury This wallet holds the Luigi treasury and runs grid trading strategies executed by core contributors, aiming to grow the DAO treasury by capturing market volatility and price swings.

Reform’s multi signature wallets

To effectively manage all treasuries, investments, operations, and the execution of on-chain transactions, Reform has been granted authorization by the governance to establish multi-signature wallets. A dedicated team consisting out of core contributors, advisors, and investors is formed to enable seamless signing and approval of on-chain transactions, in line with benefiting the Reform ecosystem. Adhering to the esteemed standards, these activities will be conducted in a transparent manner and diligently documented in the monthly updates. The public and blockchain wallets will be fully disclosed and made readily accessible through the dashboard and the monthly updates. The following wallets will be disclosed:

At present, all aforementioned wallets are secured by the following core contributors, requiring 3 out of 5 signers:

  • ScorpioRFRM: 0xd87E52D83decB8584059B6508cF314530a12B12b

  • AslanRFRM: 0xA315C139fa3D57042E94bc3148618E1eeD522688

  • Growity Trading Limited: 0xaB33516556dec907f3d75CFCE3D203012b986f96

  • Marc van der Chijs: 0x8cCF7dcCa2F0FfDcA46bb788FC0ff55D83121679

  • Hodl Management Limited: 0x45EB84aa4732DB136AC7f76c7822C4c12B346A27

Hofida Limited’s multi signature wallets

As Reform DAO operates as a decentralized autonomous organization where token holders are the decision-makers, it has yet to gain full acceptance on a global scale. To address this, Reform and HOF collaborate closely, allowing HOF to serve as a legal entity that can open accounts and hold assets on behalf of the DAO, such as tokens, equity, and intellectual property. The DAO authorizes HOF to manage its official social activities and channels. Consequently, HOF maintains various multi signature wallets to interact with the funds from Reform and to function as the legal entity. The following wallets will be disclosed:

  • Hofida Limited - Bonding router Receives proceeds as a gift from the Bonding Treasury via the Reform DAO - DAO Bonding Router to facilitate transitions to exchanges that are KYB compliant as per Hofida Limited.

  • Hofida Limited - NR Router Receives Net Revenue from exchanges, which are then allocated for buybacks and growing the DAO treasury.

  • Hofida Limited - Buybacks Receives 65% of the Net Revenue in $USDC and uses these funds to purchase $RFRM tokens from exchanges. Upon successful acquisition, the tokens are gifted to the Reform DAO: Buybacks wallet, which then transfers them to the Bonding Treasury.

  • Hofida Limited - Operations Used for paying $USDC for freelancers, marketing materials, supporting new projects and other operational expenses. This wallet is also responsible for claiming operations tokens if required for partnerships or other costs.

  • Hofida Limited - T&A Holds the locked tokens in the vesting contract for team and advisor partnerships.

  • Hofida Limited - MM Holds the tokens that can be used for market making (MM) to support additional exchange listings or to expand existing liquidity.

  • Hofida Limited - LOA Stores the tokens received by Reform DAO for market making purposes. These tokens are obtained under loan option contracts.

  • Hofida Limited - Investments Used for investments, receiving $USDC for negotiated purchases and later receiving the corresponding tokens, either directly or via vesting claims.

  • Hofida Limited - Retainer Receives revenue from retainer agreements under which Reform DAO provides market making services.

Currently, the Hofida Limited wallets are managed by the directors of HOF, the HOF finance and legal team, requiring approval from 3 out of the 5 designated signers:

  • Jess: 0xc04CF0841ad566ae005AAf02E1716153fB851DCF

  • Faouzi: 0x72E7cdBCa9135eA3dCf3C802213E5d4D290a3E5a

  • James: 0x8f52e5c8762582ABB88B56F1DfE5BF6fF922C104

  • Hofida Limited Finance department: 0xf5dDaBE0f233252349d758082C706b898FD8e28f

  • Hofida Limited Legal Department: 0x4dC61819D444F8d6b8dE73C2DaBe61fBAd7fcc11

Token flow structure

As multiple wallets are involved in the process, maintaining a clear understanding of the token flow can present challenges. To give clarity, the issuance of tokens can be be divided into two distinct sections: Token Transfers and Endless Transfers.

In the case of Token Transfers, the flow began when the tokens were minted by Reform. These tokens were then received by the ReformDAO - Ownership, from which they were distributed to wallets under the custody of either Reform DAO or Hofida Limited (As a legal entity, it can open accounts on behalf of the DAO and hold assets on behalf of the DAO such as tokens, equity, and IP). The following movements of the tokens followed this outlined path.

Reform Custody

Hofida Limited Custody

Bonding Sales

In the event of bonding sales, tokens are sold by Reform DAO. The funds collected during these sales are directed to the Reform DAO - Bonding Router. From there, they are transferred as a gift to Hofida Limited, which receives the funds in its Hofida Limited - Bonding router multi signature wallet. After, these funds are sent to exchanges to provide liquidity.

Liquidity provision

Reform provides liquidity to various exchanges using its DAO treasury. In return, Reform earns rewards based on the trading volume generated through rebates. Additionally, special algorithms generate realized profits with each buy and sell cycle. These realized profits flow back into the DAO treasury to prevent it from depleting and maintain its value. The rebates are considered revenue and may be allocated toward $RFRM buybacks, provided that quarterly revenues exceed operational costs.

Project market making

Reform offers market making services for projects, acting as the designated market maker. There are two types of contracts available: the retainer model and the loan option agreement.

In the retainer model, Reform receives a monthly fee for the services provided. This fee is split as follows: up to a maximum of 25% is paid to the referral partner (if applicable). Growity is entitled to 50% of the retainers secured for utilizing the white-label solution; however, Growity is only paid if the DAO achieves net positive revenue in the quarter. Once this threshold is met, the corresponding share is allocated to Growity. The remaining amount is recognized as revenue and may be allocated toward $RFRM buybacks, provided that quarterly revenues exceed operational costs.

In the loan option model, profits are generated by providing market making services and achieving strike prices outlined in the contract. These profits can be in stablecoins or project tokens. Token profits are automatically directed to the DAO treasury, helping to increase the DAO treasury and provide more liquidity on exchanges. Stablecoin profits are used to repay the referral partner (if applicable). The remaining stablecoins are then considered revenue.

LuigiBot

LuigiBot contributes to the Reform DAO ecosystem in two key ways. First, the Luigi/DAO treasury is actively managed by core contributors using grid trading strategies. This treasury is intended to grow DAO-owned assets and provide exposure to on-chain meme coins. These activities are not considered Net Revenue but serve to strengthen the DAO’s overall treasury. To manage risk, portions of the treasury may be moved to centralized exchanges as it scales.

Second, user fees collected from LuigiBot operations are classified as Net Revenue. These fees are paid by users for accessing and using the bot’s features. Referral fees are automatically deducted by the bot, so the full remaining amount is recorded as Net Revenue. These funds may be allocated toward covering DAO operational costs or directed to $RFRM buybacks, in accordance with quarterly revenue guidelines.

Paul's Penthouse

Paul’s Penthouse and the PauluzRFRM Twitter account play a key role in bringing new eyes to Reform DAO. They help everyday crypto traders and token holders discover what Reform is building and why market making actually matters. Through threads, memes, and regular Twitter Spaces, Paul makes liquidity approachable and shows how Reform contributes to healthy, active markets.

It’s also a powerful platform for projects. Joining a Space gives teams the chance to speak directly to a curious, engaged community, sharing what they’re building and why it matters. These conversations often highlight Reform DAO as a solution for projects navigating liquidity or market making challenges.

By consistently hosting these Spaces and driving attention to new ideas, Paul’s Penthouse creates clear value for both projects and the Reform ecosystem. When projects benefit from this visibility and support, it strengthens Reform’s reputation, and may generate value that flows back to the DAO, documented in quarterly reporting.

Net Revenue

Revenue includes all income generated by Reform DAO, this covers rebates, earnings from designated market making, marketing services, and fees from LuigiBot. Together, these make up the DAO’s gross revenue, representing its total income across all streams.

For $RFRM buybacks, Reform uses net revenue, which is calculated as gross revenue minus all operational and associated costs incurred by the DAO. At the end of each quarter, Reform DAO publishes a transparent report outlining both revenue and expenses. Based on this report, net revenue is determined. 65% of that amount is used for $RFRM buybacks in the following quarter, while the remaining 35% is allocated to grow the DAO treasury.

When net revenue is generated, funds are transferred from exchanges by Hofida Limited and routed to the Hofida Limited – NR Router.

From there:

This process ensures both ongoing support for token value and long-term sustainability of the DAO treasury.

Visualisation

The financial ecosystem within Reform DAO and Hofida operates through a structured and interconnected system designed to optimize liquidity and revenue generation. The process begins when bonding sales occur, directing funds to the Reform Bonding Treasury. From there, these funds are channeled into the Reform Bonding Router, which transfers them as a gift to the Hofida Bonding Router. Subsequently, the funds are directed to the Hofida DAO treasury, where algorithms execute high-frequency trades for projects and liquidity provision to generate Net Revenue for the ecosystem. Or generated from user fees collected through LuigiBot

Once Net Revenue is generated, it flows into the Net Revenue Router. The portion allocated for buybacks is first directed to HOF Buybacks, then returned to the Hofida KYB Exchanges for the repurchase of $RFRM. The remaining percentage is sent directly to the exchanges to help grow the DAO treasury.

After the buybacks are completed, the purchased $RFRM are transferred to the Reform Buybacks Wallet. These tokens are then locked in the Reform Bonding Treasury, where they remain until they are sold under bonding agreements with lock durations of 1 to 5 years. This structured process ensures a continuous and sustainable cycle of liquidity provision, revenue generation, and token utility within the ecosystem.

Discourse forum

What is Discourse

Discourse serves as an inclusive forum where all community members can actively engage and contribute to the progress and growth of Reform. It is the designated platform for introducing new proposals and fostering discussions about the DAO's future. Within this dynamic space, coordination and governance-related dialogues will shape the trajectory of the DAO. Subsequently, after thorough Discourse deliberations, these discussions can transition into concrete action through IPRs on Snapshot.

It is important to note that the global rules governing Reform extend to the Discourse forum, and communication on the platform should be conducted in English. In the event of any unforeseen circumstances rendering the Discourse website temporarily inaccessible, the official Reform Discord will serve as an alternative forum for governance-related discussions.

Overview of Discourse

The Discourse Forum exists out of the following categories:

  • Governance This category serves as the designated space for posting all proposals and conducting discussions related to governance. Feel free to share your insights and engage in constructive conversations here.

  • Discussions The Discussions category is open to everyone who wishes to contribute their thoughts and ideas concerning the ecosystem. It's a platform for exchanging perspectives and fostering dialogue.

  • Others This section is specifically designated for discussing various crypto-related topics that may not fit into the other sections. Feel free to explore and engage in conversations on a diverse range of subjects.

  • Quarterly reports In this forum category, Reform will consistently provide quarterly updates to keep you informed about the latest developments. Stay tuned for quarterly reports and stay up to date with the progress.

Advancing to an IPR

After discussion in the governance category, the proposal may advance to the Snapshot and become an IPR. This will be done accordingly to amount of votes on the poll added in the discussion thread. The poll will always have two reactions, the first one being “for” and “against”. If there is enough engagement and the majority voting on “for” in the poll, the discussion will advance to Snapshot. The outcome of the poll is not definite and will not have any influence on the IPR vote on snapshot.

Moderators of Discourse

The Discourse will be moderated by the mods and contributors of Reform to make sure that all rules are followed. Reform can at any moment hire new moderators for this task. And that the rules for posting governance discussions are followed. To make sure that the Discourse stays clean, new posts and replies can be reviewed and monitored by moderators to make sure all rules are met. If a proposal is made in line with the guidelines of Discourse, a moderator will approve the proposal to go live on the forum. If not the moderator will add comments for the poster to edit, if these requirements are met, the proposal will be approved and published.

Proposals and Votes

Conditions

In order for the proposal posted on Discourse to approve to an IPR, it must have the following layout.

  • TLDR A brief summary to ensure everyone understands the essence of the proposal.

  • Authors The individuals responsible for crafting the proposal and the contributors involved.

  • The why of the proposal The reasons behind initiating the proposal and the intended outcomes it seeks to accomplish.

  • The longer explanation of the proposal A comprehensive and detailed overview of the proposal, including an explanation of its merits, drawbacks, and the rationale for considering it beneficial.

  • In what way will it improve Reform The specific ways in which implementing this proposal will enhance the DAO and contribute to its overall improvement.

  • The motivation of the proposal The driving factors behind advocating for this proposal for the DAO and the reasons why it should be implemented.

  • Budget An estimation of the financial and labor resources required to implement the proposal, including the associated costs in terms of monetary investment and work hours.

  • Poll Including a poll where individuals can vote either in favor or against the proposal, serving as a determining factor for its progression to a IPR.

In order to maintain the integrity of the voting and discussion process, it is important to note that if a new proposal directly conflicts with or significantly impacts an active proposal, it may not be published until the previous proposal has been concluded. This ensures a fair and focused approach to the decision-making process within Reform.

Duration of Governance posts

In accordance with the proposed governance framework, proposals put forth by core contributors will undergo a fixed 7-day review period on the Discourse forum, followed by a 7-day voting phase on Snapshot. Proposals initiated by token holders on Discourse will be subject to a 14-day review period, during which core contributors will engage in discussions and evaluations. Subsequently, these proposals will proceed to a 14-day review phase on Snapshot. It is important to note that all timelines commence upon publication on the forum.

In order to ensure a fair and effective review process on Discourse, it is imperative that the poll reflects a majority of votes in favor, surpassing the 50% threshold for the "for" option by the designated timeline. This outcome paves the way for the advancement of the Discourse forum towards a IPR. Conversely, if the "for" votes fall short of the 50% mark, the discussion will not progress towards an IPR. Manipulation of the poll will not be tolerated, leading to the restart of the forum and poll, and appropriate actions will be taken to address any violations of the guidelines.

Quorum of votes on an IPR

In the realm of the Reform voting process, there exist two distinct sections, each with its own designated quorum requirements.

Section A:

A quorum of 80% or more “for” votes is needed to pass

  • Changes related to the governance framework within the Constitution of the DAO; This includes changes to voting power, quorum thresholds, proposal rights, or DAO-wide decision-making mechanisms.
 Example: Updating the quorum required for passing proposals from 50% to 60%, or changing who is eligible to create proposals.

  • Changes related to the Bonding Treasury; Including the removal of tokens, adjustments to bonding parameters (such as discount rates), or modifications to how proceeds from bonding are handled.
 Example: Removing a token from the bonding program, or changing the discount rate from 10% to 5%.

  • Changes related to the DAO Treasury; Including how the DAO Treasury is managed, how costs are allocated or routed, and any changes to the Treasury’s strategy (e.g. shifting to delta-neutral positioning or approving large costs).
 Example: Redirecting specific operational costs to be paid from the Operations Treasury instead of the DAO Treasury, or changing the DAO Treasury strategy to focus on stable-yield farming.

  • Changes related to the Liquidity Provision & Market Making;
 Including structural or strategic shifts in how the DAO approaches liquidity or market making, such as reducing its overall involvement, changing the revenue model, or redefining the DAO’s role. Individual project engagements do not require a vote unless they introduce a new strategy or materially change risk exposure.
 Example: Moving from an active market making model to a fully passive LP model, or changing how rebate profits from liquidity provision are recognized as DAO revenue.

  • Changes related to where the Revenue flows to; Including decisions on which revenue destinations are active (e.g. buybacks, DAO Treasury, Operations, Staking) and how much revenue is allocated to each.
 Example: Redirecting 100% of revenue to buybacks instead of splitting it between the DAO Treasury and staking, or introducing a new revenue destination like an Ecosystem Fund.

  • Changes related to the signers of the multi-signature wallets;
Including changes to the signer addresses, the total number of signers, or the threshold required to execute transactions from official Reform DAO wallets.
 Example: Changing the signing structure from 3/5 to 2/5, or replacing an inactive signer with a new contributor wallet.

  • Changes related to the curator, in performing Market Making on behalf of the DAO; Including appointing or removing third-party market makers, defining their responsibilities, setting limits on the funds they can access, or changing the terms under which they operate.
 Example: Allowing an external partner to manage liquidity for the $RFRM token, or updating their parameters such as slippage limits, timeframes, or profit-sharing.

Section B:

A quorum of 50% or more “for” votes are needed to pass

  • Changes related to the informational or structural content within the Constitution that do not alter DAO governance; These changes typically follow a prior vote to approve a new service, stream, or structure, and simply reflect that decision in the Constitution.
 Example: Adding Paul’s Penthouse to the list of DAO-aligned revenue streams after its onboarding was approved through a separate proposal.

  • Changes related to the distribution of Revenue; Including adjustments to the percentage split between existing, previously approved revenue destinations, such as buybacks, DAO Treasury, staking rewards, or ecosystem development. This item does not cover adding or removing destinations, only how revenue is divided among them.
Example: Changing the revenue split from 35% to the DAO Treasury and 65% to buybacks, to a new structure of 50/50 or 100% buybacks.

  • Changes related to the Operations Treasury; Including how the Operations Treasury is funded, how payments are processed, or how costs are approved and paid out from this wallet.
 Example: Changing the funding flow to automatically top up the Operations Treasury monthly.

  • Changes related to the Staking Treasury; Including adjustments to staking reward rates, the distribution schedule, or the addition of new tokens to staking incentives.
 Example: Increasing the daily staking reward from 0.05% to 0.10%, or allocating an additional 100,000 $RFRM tokens to the staking pool.

  • Changes related to what will be done with the bought back $RFRM; Including what happens with $RFRM tokens acquired through buybacks or reserved revenue, whether they are burned, held, reallocated to bonding, or used for other strategic purposes.
Example: Deciding to burn all bought-back tokens instead of moving them to the Bonding Treasury, or reallocating them to a new strategic vault.

  • Adding or removing liquidity for $RFRM; Including any decision to add to or withdraw liquidity from the $RFRM liquidity pool using the official HOF LP wallet. Example: Removing part of the liquidity position on a DEX due to low volume, or adding additional liquidity after a token expansion.

  • Changes related to any Reform DAO decisions not explicitly mentioned above;
 Including structural or strategic changes such as bringing existing tokens or projects under the Reform DAO umbrella, launching DAO-aligned products, or other governance matters not covered in existing categories. Example: Integrating an external project’s token into the Reform DAO ecosystem, or onboarding a legacy protocol as a supported Reform product.

Should a voting on an IPR fail to meet the required quorum as stipulated in the constitution, it shall be deemed as unsuccessful. However, there remains the possibility for the community to engage in further discussions and enhancements, leading to a potential reevaluation and subsequent voting on the proposal.

Voting on an IPR

Voting is conducted through the Reform Snapshot website or, in the event of network modifications, alternative on-chain voting solutions may be chosen by Reform. If such a decision is made, it needs to be communicated to the entire community.

Whenever a new voting event is initiated on Discourse and Snapshot, an announcement should be posted to ensure transparency. Similarly, once the voting process concludes and the outcome is either approved or denied, this information should be shared across all social channels. If the Snapshot voting results in approval or denial, the discussion thread will be updated accordingly. So that every holder is up to date on the voting process.

Voting rights are granted to those who have staked their $RFRM tokens in the staking pools and held them until the last recorded Ethereum block number at the time of the voting creation on Snapshot. By utilizing their $eRFRM tokens, these token holders can actively participate in voting on the Snapshot proposal. It is important to note that each $eRFRM token carries an equal weight of one vote for every individual. It's essential to understand that the tokens held in the ownership of Reform cannot be utilized for voting purposes. These tokens are allocated to the Bonding Treasury, Operations Treasury, as well as the DAO Treasury or Market Making Layer. The same principle applies to the locked $RFRM tokens held by the team, advisors, and operations. To maintain transparency, the wallets associated with these entities are made public and accessible through the dashboard. An overview of these wallets can be found in Token flow structure.

Amendments to the constitution

When it comes to amending or updating the constitution, it is imperative that the proposed changes are presented with utmost clarity and according to the Principles of Reforms found on page 5. These changes should undergo an official voting process, as outlined in Section A, which requires a higher quorum. Additionally, it is essential that all modifications are diligently recorded on the blockchain to ensure transparency and accountability.

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