With the conclusion of the SOLA-X fundraise, we are ushering in an essential phase in our journey - the post-raise governance process. Our approach to governance is a distinctive feature of AngelBlock, distinguishing us from traditional launchpads.
In an effort to provide transparency and insight, we’ve created this guide to help you understand the post-raise governance process. The inaugural vote is due on September 1st, and we believe it’s important for our community to understand the ins and outs of what’s coming next.
Post-Raise Governance: What Is It?
The post-raise governance process is a system that allows our community of investors to have a say in the progress of the projects they support. This process involves voting on milestones, which are crucial points in a project's development. In the case of SOLA-X, this voting period is about to begin.
During each AngelBlock fundraise, startups define a series of milestones. These milestones comprise specific deliverables, a target completion date, the budget to be unlocked, and the number of tokens to be released upon completion. All funds raised are held in a smart contract and released to the project only upon the successful completion of each milestone.
Note that as SOLA-X is an early-stage raise, $SAX tokens will be released according to their token vesting schedule. All the information is available on their project page.
How Milestone Voting Works
To partake in the voting process, investors must have participated in the SOLA-X fundraise, receiving the respecting Badge
, and they should have completed the KYC process
. The voting power is proportional to the amount invested in the raise.
Eligible investors participate in standard voting over a seven-day period, casting an 'Approve' or 'Reject' vote on a milestone's completion and providing a rationale for their choice. Every vote carries weight proportional to the voter's share in the project. At the conclusion of the voting period, the tally of 'Approve' and 'Reject' votes determines whether a milestone has been achieved.
We understand that the path to project completion is often not linear and may require adjustments. Therefore, we've incorporated provisions for startups to re-plan their milestones or overall roadmap.
Single Milestone Re-planning
Startups may need to adjust individual milestones before their due dates. They can redefine the milestone deliverables and set a new date, provided no other voting process is active within the upcoming week. Any such changes must be approved by the investors via standard voting rules.
Similarly, startups can apply for a complete roadmap re-planning. They can redefine deliverables, dates, budgets, and token allocation for all upcoming milestones. However, this requires a higher degree of investor involvement: at least 50% of investors must partake in the vote for a roadmap re-plan to pass.
Milestone Approval and Rejection
When a milestone date is reached, the project must update the milestone status providing a delivery report. Then, the milestone voting starts.
A milestone is approved if 'Approve' votes outnumber 'Reject' votes. Even in a tie, the milestone is deemed approved. Upon approval, the designated budget and tokens are released, with investors able to claim tokens proportionate to their investment.
If 'Reject' votes outnumber 'Approve', the milestone is rejected. In such a case, the startup has a week to submit a repair plan, detailing new deliverables and a revised date. Investors then vote on this repair plan.
If a repair plan is approved, it sets a new timeline for the project. If a repair plan is rejected or not proposed, the invested assets assigned to the failed and remaining milestones are returned to the investors, and the utility tokens assigned to these milestones are returned to the startup.
Keep in mind that if a milestone vote doesn't meet the quorum, the milestone will be deemed as rejected.
Milestone voting flowchart
The Road Ahead
As we prepare for the first vote to happen on September 1st, we encourage our community to engage in this process actively. The post-raise governance process embodies AngelBlock's commitment to investor empowerment, transparency, and accountability, making it a distinctive feature of our platform.
Stay updated through our channels, and feel free to reach out with any queries as we shape the future of decentralized project governance, one milestone at a time.