Executive Branch
Last updated
Last updated
The Executive Branch holds a pivotal role in steering the ecosystem towards long-term sustainability. This branch, consisting of individuals holding Governor NFTs and VIP NFTs, operates with a structured framework designed to redistribute value throughout the ecosystem effectively. This section will clarify the structure, responsibilities, and benefits associated with the Governor NFT, which forms the core of the CIFI DAO's executive branch.
Membership Structure and Rewards
Governor Seats:
To become a member of the Executive Branch, an individual must acquire 100,000 CIFI tokens and purchase a Governor NFT, marking their entry into the governance framework.
APR Staking Rewards: All Governor NFT holders are eligible for 10% APR staking rewards, incentivizing the long-term holding and active participation in the ecosystem governance.
Exclusivity:
The Governor NFT is limited to 250 memberships, creating an exclusive and influential group responsible for critical decision-making processes within the CIFI ecosystem.
Roles and Fiscal Responsibilities
Monetary Policy Oversight:
Governor NFT holders have the authority to oversee the monetary policies within the CIFI ecosystem, guiding its financial strategies and ensuring benefits from its growth.
Monthly Rewards and Quarterly Dividends:
Members are entitled to monthly rewards, enhancing their incentive to contribute positively to the ecosystem's development, and quarterly dividends, reflecting their stake in the platform's success.
Stabilizing the Platform:
Governor NFT holders play a significant role in maintaining the stability of the platform. They are tasked with the critical function of liquidating under-collateralized loans, protecting the ecosystem from potential financial instability.
Creation of ETF 3:
The Governor NFT holders are tasked with creating ETF 3, an internal Money Market Fund (MMF), funded through the acquisition of liquidated assets. This mechanism not only contributes to the fund’s yield generation but also provides a financial backbone for the Governors.
Auto-Liquidation Mechanism:
Should the Governors not act, an automatic liquidation mechanism is triggered, selling off assets on the open market to ensure the continuous stability of the platform.
Governance and Operational Focus
Executive Functions:
Blacklisting: The Executive Branch has the power to blacklist wallets identified as acting maliciously, safeguarding the integrity of the CIFI ecosystem.
Borrow Protocol Management: The Governors manage the interest rates of the borrow protocol, with 50% of the profit channeling back to them, aligning their interests with the efficient operation of the borrowing system.
Micro-Service Fee Allocation: They oversee micro-service fees, ensuring the sustainable operation and development of platform services.
Liquidation Oversight: Governors have direct oversight of liquidations, pivotal for the growth of ETF 3/MMF, providing a clear direction for the asset management strategy.
The Executive Branch of the CIFI ecosystem, powered by the Governor and VIP NFTs, is the cornerstone of CIFI's governance model. It embodies the principles of decentralization, offering a strategic balance between incentivizing governance participation and maintaining ecosystem health. By outlining the clear structure and functions of this branch, CIFI ensures transparency and instills confidence in its stakeholders, demonstrating a robust and forward-thinking approach to decentralized finance governance.
The Governor Seat NFT stands as a cornerstone, embodying the platform's commitment to community-driven governance and financial stewardship. This digital role is designed to empower the public to take an active part in managing the ecosystem's monetary policies and operational dynamics, ensuring its longevity and success. Below, we delve into the workings, responsibilities, and benefits of holding a Governor Seat NFT within the CIFI ecosystem.
The Role and Purpose of Governor Seat NFT
Digital Representation of Governance: The Governor Seat NFT is more than a digital asset; it represents a crucial role within the CIFI ecosystem, allowing holders to directly influence the platform's monetary policies and engage in the governance process.
Public Management and Corporate Consultation: While Circularity Finance, as a corporate entity, provides technological consultancy, the real power lies in the hands of the community—specifically, the Governor Seat NFT holders. These governors are tasked with overseeing and managing the ecosystem's financial health and operational policies.
System of Checks and Balances
To ensure the ecosystem's stability and effectiveness, CIFI has instituted a collaborative governance structure. Governor Seat NFT holders work in tandem with VIP NFT holders to form the Executive Branch of the CIFI Ecosystem, creating a balanced and inclusive decision-making process.
To acquire a Governor Seat NFT, one must invest 100,000 CIFI tokens. This investment not only grants governance rights but also aligns the holder’s interests with the ecosystem's prosperity.
The NFT cannot be sold until all 250 seats are filled, fostering a sense of commitment and long-term involvement among the governors. Once all seats are occupied, an internal-secondary market will emerge, Governors wishing to exit their role can sell the NFT back to the ecosystem, where it will be retired & burned, thereby consolidating the dividends and benefits among the remaining NFT holders.
Responsibilities and Rewards
A primary responsibility of Governor Seat NFT holders is to manage and liquidate any under-collateralized loans within the CIFI Borrow platform, safeguarding the ecosystem's financial stability.
To minimize risk, only assets paired with CIFI can be used as collateral on the CIFI Borrow platform, ensuring that loan securities are tightly regulated and aligned with the ecosystem's core assets.
Governors gain exclusive access to a token-gated area designed for managing liquidations, where they can earn REFI tokens as rewards for their contributions to maintaining the ecosystem’s health.
The CIFI Governor Seat NFT is a testament to Circularity Finance's vision of a decentralized, community-driven financial ecosystem. By entrusting governance to the holders of these NFTs, CIFI ensures that the platform remains responsive, responsible, and resilient. Through their active participation, governors play a pivotal role in steering the ecosystem towards sustainable growth, demonstrating the power of collective action in shaping the future of finance.
