Governance
In the near future, we expect RND token holders to participate in governance activities that influence the protocol and its direction. Rand’s governance model is designed to achieve an adaptive network based on the needs of its stakeholders, through representative community engagement and participation in distributed governance.
Governance diagram

Governance Stakeholders

Stakeholders who get to participate in the governance process include:
  • General RND token holders, who hold the minimum required balance of RND
  • Rand council members
  • Rand technical and strategic committee members

Rand Council

The Rand Council is a governance committee, representing active and passive stakeholders. It's an on-chain entity comprising several actors who are each represented by an on-chain account. Along with controlling the treasury, the council is called upon primarily for three tasks of governance:
(1) proposing sensible referenda,
(2) curbing potentially malicious referenda, and
(3) electing the technical or strategic committees.
Council elections will be held to recruit new council members, and this will initially be handled by the Rand team token holders. A new council election takes place when the initial council and the general stakeholders do a proposal with 60% majority votes in favor, by both groups of stakeholders. This specific election will choose the new candidate for the council and only one candidate can be chosen during each election.
Rand Committees
A Strategic Committee will be set up to develop organizational objectives and drive the progress of the project and network. A Technical Committee will also be set up to manage the technology, technical developments, and technology-related decisions in relation to the company's strategic operations.
The selection of new committee members is decided by the council and existing committee members. A candidate proposal can be presented by any stakeholder group, and the final decision of the proposed candidate is then determined by a referendum of the council and the committee members. For a candidate to be approved, at least 80% of the council and 60% of the committee have to vote in favor of his/her election.

Rand Governance Structure and Processes

Governance Structure Diagram
Rand will employ a modified version of the Polkadot governance infrastructure, which is based on on-chain voting mechanisms such as referenda with adaptive super-majority thresholds and batch approval voting. All changes to the protocol are determined by stake-weighted referenda.
In a general governance process, a referendum is proposed by some of the stakeholders, to then be reviewed by the Council and Committee members. If the proposal is approved, it is then submitted for voting by all general stakeholders. With this architecture, we give the full power of decision-making to all general stakeholders at the same time, which stops malicious or nonsensical proposals.

Public Referendum

Anyone will be able to propose a referendum on our forum. After that, we will propose the Snapshot process to see the major sentiment for that proposal. In this case, if it is a positive sentiment, the proposal will be submitted to be reviewed by the strategic committee. Once the proposal is accepted by the committee, it is then finally reviewed by the Council. Once the proposal is accepted by both Committed and Council it is submitted to be approved by all general stakeholders.
For a regular referendum to pass successfully, at least 60% of the general token holders, council and committees, have to vote in favor of the proposal.
A proposal can be canceled if the technical committee unanimously agrees to do so. This measure would be used as a last resort in the event that there is an issue discovered late in a referendum's proposal, such as a bug in the code or the runtime that the proposal would institute. A canceled proposal's deposit will subsequently be burned.
In addition, a proposal can be blacklisted, in which case its hash cannot re-appear in the proposal queue. Blacklisting is useful to remove erroneous proposals that could be submitted with the same hash.

Council and Committee Referendum

For a referendum to be proposed by the council, at least 60% of its members must be in favor, with no member exercising a veto. Vetoes may be exercised only once by a member for any single proposal.
When at least 60% of all members of the council agree on a proposal (regarded as a ‘unanimous’ outcome), it will be moved to a referendum as a council-approved proposal. Similar to a Public Referendum, the council-approved proposal will also be voted upon by all stakeholders, with majority rule or 60% in favor to win.
There can only be one active referendum at any given time, except when there is also an emergency referendum in progress.

Voting Timetable

Every 30 days, a new referendum will come up for a vote, assuming there is at least one proposal in one of the queues. There is a queue for Council-approved proposals and a separate queue for publicly submitted proposals. The referendum to be voted upon will alternate between the top proposal in each of the two queues.
The "top" proposal is determined by the sentiment and voting power on the snapshot funnel. If the designated queue to create a referendum has no proposals, the top proposal in the other queue will take its turn instead.
Multiple referenda cannot be voted upon at the same time, excluding emergency referenda. An emergency referendum occurring at the same time as a regular referendum (either public or council-proposed) is the only time that multiple referenda will be voted on concurrently.

Voting on a Referendum

To vote, a voter generally must lock their tokens up for at least the enactment delay period beyond the end of the referendum. This is to ensure some minimal economic buy-in to the result needed and to dissuade vote selling. It is possible to vote without locking, but your vote is worth a smaller fraction of a normal vote, given your lack of staking.