Wolf Society decentralization framework

The concept of a decentralization framework involves gradually shifting control and decision-making power from a central authority to a broader community. Progressive decentralization is a strategic approach that starts with a centralized structure to build a solid foundation, attract users, and ensure stability. As the project matures, governance, ownership, and control are incrementally transferred to the community, ensuring sustainability, security, and alignment with the project's core values and long-term vision.

The Wolf Society will fully transform into a for-profit venture DAO (decentralized autonomous organization) leveraging blockchain and crypto technologies to foster community driven sustainable innovation and investment. Decentralization will take place gradually in three phases.

During centralized Phase 1, we will focus on building the core infrastructure, refining the program methodology and creating key partnerships. Phase 1 will consist of the following activities:

Partial decentralization is based on the involvement of external partners (challenge owners) and collaborators (facilitators, advisors, mentors, judges) in the processes related to the definition of the challenges and the launch of the 11 Problems Solved by Wolf Society program.

Phase 2 is represented by:

DAOs are designed to remove central authority, allowing decisions to be made through member voting on proposals. This is managed via smart contracts, which automate and enforce agreed-upon rules. The Wolf Society DAO is member-managed, ensuring decisions reflect the collective will rather than a centralized entity.

Phase 3 will be represented by following events:

Creating and legally registering a DAO involves several stages. Initially, a DAO forms through smart contracts that govern its operations and decision-making processes. The next step involves selecting a legal framework, in our case a limited liability company (LLC), to ensure compliance with existing laws. The jurisdiction of the Wolf Society DAO has yet to be confirmed by the co-founders of the Wolf Society. This legal registration provides the DAO with legal personhood, offering protection for members and enabling it to engage in contracts, own assets, and interact with the legal system.

Wolf Society LBE can be seen as a specific form of initial coin offering that is particularly beneficial for smaller sustainable investors who are looking to become early members of the Wolf Society DAO. A liquidity bootstrapping event involves the use of Liquidity Bootstrapping Pool (LBP) to launch Wolf Society DAO token with minimal initial liquidity. LBPs allow token prices to start high and gradually decrease, preventing bots from hoarding tokens at low prices and enabling fairer distribution. This mechanism adjusts the token's weight in the pool over time, stabilizing prices and allowing genuine participants to acquire tokens. The LBE event will set the initial market price of the Wolf Society DAO token.These tokens can later be used within the Wolf Society DAO ecosystem (governance, voting, revenue share, etc.) or traded on exchanges. Funds raised from the LBP event will be used for initial token liquidity and initial funding of the DAO treasury.

A token-governed treasury that uses its funds to empower sustainable innovators. Creating a DAO treasury involves pooling funds that the DAO can use for various purposes like funding projects, paying contributors, or investing. Initial funding for the DAO treasury will come from the Wolf Society’s liquidity bootstrapping event. Treasury management is crucial for the DAO’s sustainability and involves making decisions about how to allocate these funds, ensuring transparency, minimizing risk, and optimizing returns. Effective treasury management includes diversification of assets, automated payouts using smart contracts, and community governance to decide on fund allocation. This ensures that the DAO remains financially healthy and aligned with its goals.

Decentralized governance by smart contract offers increased transparency, automation, and efficiency in decision-making processes. Smart contracts reduce the need for intermediaries, ensuring that rules are enforced automatically and consistently. They also provide a secure and tamper-proof way to execute governance decisions, which enhance trust among participants. Smart contracts also reduce the potential for human error, making decentralized governance more streamlined and reliable.