Nektak DAO Whitepaper

Nektak DAO

Executive Summary

Nektak DAO proposes a new form of large-scale civic coordination: a decentralized, community-run organization designed to lobby, fund, and influence political and social outcomes in the public interest. Our core conviction is that concentrated political and economic power leads to outcomes (war, extreme inequality, environmental destruction) that the majority would not endorse. Nektak DAO flips the script: the many ordinary people who contribute time, work, and resources collectively decide how to allocate funds and which public actors and measures to empower.

Nektak is a hybrid legal + on-chain construct: Nektak LLC provides services and operational support, while Nektak DAO is the membership-driven treasury and governance body. The DAO funds lobbying, public campaigns, and partnerships that align with its values.

Key differentiators:

• Power is not bought it is earned and sustained by contribution ("Worked for DAO" score) and time-based civic participation (Nektak DAO cycle).
• Token ownership alone does not dominate governance; voting power is a composite of tokens, work, and participation-time multipliers.
• Treasury liquidity funds real-world lobbying, grants, and programmatic interventions.

Problem Statement

Political influence today is dominated by a small set of well-resourced actors. Lobbying, political donations, and concentrated media control produce outcomes that frequently diverge from the preferences of the general population. Two concrete problems:

1. Concentrated power a minority with outsized influence can shape policies harmful to the many.
2. Broken incentives systems reward extraction rather than shared well-being; there is no scalable, systematic way for people who prefer peace, equity and sustainability to pool resources and influence public policy.

Nektak DAO aims to provide a credible, decentralized vehicle for the public (the many) to organize, fund, and influence political and social decisions at scale.

Vision & Mission

Vision: A world where public policy and political power reflect the broad, peaceful, and equitable preferences of the population not those of a wealthy few.

Mission: Build a resilient, transparent, and fair decentralized organization that (1) aggregates resources from members, (2) democratically decides on public interventions and lobbying efforts, and (3) executes those interventions through funded programs, partnerships, and operational services.

Core values: decentralization, fairness, transparency, accountability, solidarity.

Use Cases & Impact Areas

• Funding civic campaigns that promote peace, human rights, and ecological stewardship.
• Supporting and lobbying for policies that reduce inequality (e.g., social safety nets, progressive taxation, basic income pilots).
• Grantmaking to on-the-ground organizations aligned with DAO values.
• Public-information campaigns (education, misinformation correction).
• Backing participatory, community-driven public representatives who accept accountability to DAO decisions.

Organizational Structure

Nektak operates as a hybrid system:

Nektak LLC (legal entity)

• Holds equity, employs staff, and provides operational, legal, technical, and campaign services to the DAO.
• Department heads hold equity in the LLC. Staff are treated as contributors in the Nektak DAO.

Nektak DAO (on-chain membership and treasury)

• The DAO is a governance and treasury layer: members govern treasury allocation, campaign priorities, and service procurement.
• Nektak DAO purchases services from Nektak LLC using DAO fiat and tokens. Nektak LLC provides services in exchange for tokens and/or fiat as agreed by DAO-approved contracts.

Rationale: the LLC provides software, technical services and a legal home for certain off-chain activities (contracts, staffing, compliance) while the DAO ensures democratic allocation of funds and strategic direction.

Membership & Participation

Who can join: Open membership by default; onboarding processes and identity / Sybil-resistance measures are required for voting eligibility (see Governance & Security).

Roles:

• Members: token-holders and contributors who participate in proposals and votes.
• Contributors: individuals who perform work and earn Work Score.
• Department Heads / LLC staff: provide services and may participate as contributors.
• Delegates / Working Groups: focused teams for operations, research, legal, outreach, audits.

Tokenomics Overview

Nektak Tokens (NKT) are the native on-chain unit used for governance, rewards, and service exchange between Nektak DAO and external partners (including Nektak LLC). Key properties:

• Non-fixed supply: NKT supply is not eternally capped. Token minting and issuance are governed by DAO proposals and subject to treasury policy and inflation controls.
• Earning & Acquisition: NKT can be bought on open markets (if listed) and can be minted/issued to contributors in exchange for services to the DAO (work rewards) per DAO-approved rules.
• Utility: governance participation, staking for proposals, and settlement between DAO and service providers.
• Treasury: holds a mix of tokens and fiat to fund lobbying, campaigns, grants, and operations.

Initial distribution and early-economic parameters must be specified by the DAO during launch (recommended: a community-driven launch proposal). See Appendix for suggested starting splits and monetary policy options.

Governance Model Principles

Nektak governance is designed to minimize plutocratic influence while rewarding actual contribution. Principles:

1. Earned influence: contributions of time and work (Work Score) increase influence.
2. Time participation: new members undergo a time-based accrual cycle (Nektak DAO) that shapes governance power over a cyclical window.
3. Transparency & accountability: every treasury expenditure and lobbying action is documented and auditable.
4. Anti-capture safeguards: caps, proposal vetting, and quadratic/quasi-quadratic mechanisms reduce dominance by large token-holders.

Governance Mechanics & Formulas

Primary metrics

1. Token Holdings (T) raw NKT tokens an individual holds (non-transferable staking may be used to lock tokens for additional effects).
2. Work Score (W) a non-transferable reputation/credit that individuals earn for verified work, volunteering, or service benefiting the DAO. Work Score is denominated in a normalized numeric scale (0..1) or percentile scale; the DAO will define measurement & verification procedures.
3. Nektak Time Multiplier (D(t)) a time-based governance multiplier assigned to each member that follows a 3-year cycle: 0 to peak to 0. Details below.

Effective Voting Power (EVP)

We propose an illustrative formula for voting weight used in most on-chain votes:

EVP = T * (1 + β * W_norm) * D(t)

Where:

• T = token balance (or staked tokens) used for voting.
• W_norm = normalized Work Score between 0 and 1 (or 0 and 100%); higher equals more contribution.
• β = configurable boost coefficient (governance parameter) that scales the contribution weight. The DAO can vote to set β suggested starting value: 1 to 10 depending on desired power of work.
• D(t) = Nektak Time Multiplier: a per-member multiplier that changes over time according to the Nektak DAO cycle.

Notes:

• Non-linearity options: the DAO may choose quadratic voting, diminishing returns, or caps to further mitigate token concentration effects.
• Cap: the DAO should initially set a maximum allowed EVP per account (absolute cap) to reduce extreme outcomes.

Nektak DAO Time-Based Participation Cycle

To encourage sustained, active civic participation and prevent lifetime accumulation of outsized permanent power, each member receives a time-based multiplier D(t) structured as:

• Phase A (Ascend): from join to 1.5 years (540 days) the multiplier linearly grows from 0 to 10x.
• Phase B (Descend): from 1.5 years to 3 years the multiplier linearly decreases from 10x back to 0.
• Cycle: after 3 years the cycle repeats; membership retention and activity reset rules will be defined by the DAO.

Interpretation & safeguards:

• Starting at 0 means brand-new members have minimal time-based multiplier; they still retain some voice via tokens and immediate Work Score, but cannot instantly capture heavy influence.

Worked-for-DAO Score (Work Score)

• Earning: credited for verifiable contributions: code, moderation, research, organizing, field work, campaign execution.
• Verification: contributions verified by peers, working group leads, or oracles; reward and Work Score issuance subject to anti-collusion checks.
• Decay: Work Score may decay over time if contributions stop, preventing indefinite accumulation.
• Non-transferable: not tradeable or sellable, per wallet.

Treasury, Lobbying & Execution

Treasury: funded by member contributions, donations, token sale proceeds, and returns from investments. The DAO votes on treasury allocation proposals.

Lobbying Mechanism:

1. DAO members propose candidates/initiatives to support politically (policies, politicians, NGO grants).
2. A voted approval allocates funds from the treasury to concrete actions: direct lobbying, funding allied organizations, voter education, ad campaigns, legal briefs, etc.
3. Nektak LLC may act as the implementing agent (contracts, compliance), receiving payment for services upon DAO-approved proposals.

Transparency & Reporting: All expenditures, contracts, and campaign metrics are logged and published in regular DAO reports.

Legal & Regulatory Considerations

Because Nektak DAO intends to interact with political systems (lobbying, funding candidates or causes), it must maintain strict legal compliance:

• Jurisdiction & Wrapper: Choose an appropriate jurisdiction and legal wrapper (foundation, association, or LLC) for handling fiat activities and compliance. Nektak LLC will likely operate in a jurisdiction that permits lobbying and nonprofit/for-profit hybrid activities.
• Lobbying rules: Local laws around lobbying, political donations, foreign contributions, and disclosure must be followed. The DAO must adopt a compliance-first approach (legal counsel, reporting, and operational controls).
• Compliance obligations: The DAO must adopt a compliant Legal & Regulatory framework to ensure all political engagement adheres to applicable laws and reporting requirements.
• Transparency & reporting: Public disclosure of all lobbying activities, funding recipients, and campaign expenditures is required in most jurisdictions. Nektak DAO commits to transparent reporting, aligned both with legal requirements and community expectations.
• KYC / AML compliance: While open membership is a principle, for treasury disbursements and external lobbying expenditures, the DAO may require identity verification of contractors, grantees, and service providers.
• Risk management: Political engagement carries reputational, financial, and legal risk. DAO governance processes should include independent legal audits, compliance checks, and clear rules on which jurisdictions and activities are permissible.

Security & Safeguards

• On-chain security: Multisig wallets, time-locks, and DAO-approved smart contracts secure treasury and voting mechanisms.
• Sybil resistance: Participation requires identity verification or proof-of-personhood (e.g., Web3 identity tools, decentralized ID systems) to prevent manipulation by fake accounts.
• Auditability: Smart contracts and governance systems undergo regular third-party audits; audit reports are published publicly.
• Crisis protocols: In cases of detected capture attempts, hacks, or coordinated attacks, emergency pause and recovery procedures are in place, requiring community supermajority approval to resume.

Roadmap

Phase 1 Formation (0-6 months)

• Finalize legal wrapper (LLC + DAO agreement).
• Deploy token contract, governance MVP, and treasury multisig.
• Publish v1 governance rules and Work Score framework.
• Launch initial distribution & onboarding campaign.

Phase 2 Early Operations (6-18 months)

• Begin issuing Work Scores and allocating rewards.
• Fund pilot campaigns in civic education, policy lobbying, and grants.
• Establish first DAO working groups (legal, research, outreach).
• Secure first external partnerships (NGOs, advocacy orgs).

Phase 3 Scaling (18-36 months)

• Expand treasury size via token sales, donations, and investment returns.
• Broaden lobbying activities to multiple jurisdictions.
• Refine governance mechanisms (quadratic, caps, anti-capture refinements).
• Onboard mass membership via education and campaigns.

Phase 4 Global DAO Government (36 months and beyond)

• Operate as a credible decentralized lobbying force representing global citizens.
• Continue cycles of governance evolution, treasury growth, and public impact.

Risks & Mitigations

• Regulatory crackdown: Governments may restrict DAOs or foreign lobbying.Mitigation: careful jurisdiction selection, compliance-first approach.
• Capture by wealthy actors: Rich members could try to buy influence.Mitigation: Work Score weighting, Drop DAO cycles, EVP caps.
• Low participation / voter apathy: Governance may stagnate.Mitigation: incentivized participation, reputation accrual, delegation.
• Technology risks: Smart contract bugs or exploits.Mitigation: audits, bug bounties, upgradeable but transparent governance.

Conclusion

Nektak DAO seeks to build a global, decentralized government in practice not by replacing states, but by creating a democratic mechanism for ordinary people to pool resources and influence political and social outcomes. By combining tokenomics, contribution-based reputation, and time-based governance multipliers, Nektak DAO avoids plutocracy and incentivizes civic engagement. With transparency, compliance, and resilience as core design features, Nektak DAO can scale into a new form of political power one that reflects the will of the many, not the few.

Appendices

• Appendix A: Tokenomics & Governance Parameters (see full Tokenomics section integrated earlier).
• Appendix B: Example EVP Calculations.
• Appendix C: Draft Constitution / Code of Conduct (to be adopted by DAO vote).