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AMKT DAO Constitution
The AMKT Decentralized Organization (“DAO”) is responsible for maintaining the AMKT Benchmark (“Benchmark” or “AMKT Index”), a benchmark tracking the crypto-asset market. The AMKT Token (“index token”) is the crypto-asset that implements the Benchmark. This constitution (“Constitution”) and the smart contracts implementing AMKT acquisition, trading, and governance together describe how AMKT operates.
In this Constitution, unless context indicates a contrary intention:
- AMKT or AMKT token are the index token created by the DAO and backed by the underlying assets held in the smart contracts.
- AMKT Underlying Assets means the assets that collateralize the AMKT token and are used to create AMKT and are received when redeeming AMKT.
- AMKT holder or Current AMKT holder are the current human or institutional holder of an AMKT token.
- AMKT Protocol or Protocol are the protocol and smart contracts implemented by the DAO to allow the operation and governance of AMKT tokens.
- Commencement Date is the date upon which this document becomes the functioning Constitution of the Protocol.
- DAO is the entity representing the aggregate of AMKT-holders, collectively implementing the AMKT token operations.
- DAO Foundation is the legal entity for the AMKT DAO that may perform certain functions on behalf of the AMKT DAO.
- Protocol Fee Change Quorum is a voting quorum consisting of two-thirds of current AMKT supply.
- Proposal Threshold is the amount of AMKT needed by an AMKT holder to advance a proposal to an adoption vote. In order to make the system maximally accessible while limiting spam proposals, a low, constant, but not insignificant quorum of 100 AMKT is the default Proposal Threshold.
- Resolution Quorum is a percentage of the voting power cast in a single proposal required for such proposal to be considered to have been resolved in any direction. Resolution Quorum is set to be 2.5% of circulating supply of AMKT.
- Time periods used in this Constitution are defined as follows:
- Proposal Timelock Period is 4 days.
- Constitution Lifetime is indefinite.
- Each issued AMKT token represents a share of the AMKT Underlying Assets. Each AMKT token provides the holder with the ability to participate in AMKT governance, subject to any requirements the DAO may impose. AMKT tokens are fully redeemable as explained below.
Each AMKT holder is a member of the AMKT DAO. The AMKT DAO is organized as a foundation (“AMKT DAO Foundation”). Actions that are collectively undertaken by AMKT token-holders are implemented through the AMKT DAO and the Foundation.
The AMKT DAO has a set of guidelines and procedures for the conception, voting, and execution of new governance proposals. See the Asset Universe Update Process for more detailed information about how these work.
AMKT is governed by AMKT holders themselves. AMKT holders can propose to make changes to AMKT and its implementation provided the proposed changes adhere to the values set forth in this Constitution. A governance multi-sig exists on behalf of the AMKT DAO to implement approved governance proposals, and has certain emergency powers designed to guard against a network attack.
The AMKT DAO Foundation is the legal entity that takes certain action on behalf of the AMKT DAO. Operating under the auspices of the AMKT DAO Foundation is the Governance Multi-Sig, a group of value-aligned individuals that administers certain aspects of the AMKT Network and the AMKT token on behalf of the DAO. The Governance Multi-Sig has the following responsibilities:
- Implementing approved governance proposals, including re-balancing proposals;
- Handle emergency multisig operations;
- Pause minting of the AMKT token when required.
AMKT Holders may propose to adjust the size and composition of the Governance Multi-Sig.
AMKT tokens can be directly minted and redeemed to the protocol by eligible persons. A person who wishes to mint AMKT must deposit funds in the smart contract before AMKT tokens are issued by the protocol.
Once purchased, AMKT tokens may be bought and sold on exchanges or other third-party platforms. An AMKT holder is considered to be “Current” if they can prove current ownership of AMKT tokens.
The primary purpose of fees within the protocol is to maintain the sustainability of the index. At inception, all fees generated by the AMKT protocol will be directed to Alongside Finance, Inc. through the fee receiver.
The index charges an administrative fee that is set as of the Commencement Date. This fee is paid out by the protocol through inflation of the AMKT.
AMKT is intended to be a benchmark of innovation in decentralized systems that are enabled by advances in cryptography and/or mechanism design. Innovation in decentralization, cryptography, or mechanism design are the metrics for inclusion by thematic fit. For that reason, inclusion cannot be based on things such as (but not limited to) the mere existence of a tokenized representation of something on a blockchain whose value is mostly unrelated to these types of innovation, or assets that are primarily affiliated with political causes or personal beliefs.
A non-exhaustive list of assets that fail this criterion are stablecoins, tokenized derivatives, synthetic assets, tokens that are tied to physical assets, tokens that represent claims on other tokens, etc.
While there might be a very large list of assets that have a thematic fit, pragmatic considerations limit the number of assets that can be included in the index. One such consideration is low trading volume of the asset under consideration.
An asset cannot be found to be in violation of law following a judicial or other final government proceeding, either in the jurisdiction in which the asset was issued, or a jurisdiction where a relevant party in the AMKT network is located. This helps ensure AMKT DAO is compliant with local regulations and mitigates regulatory scrutiny that could threaten the continuity of AMKT DAO and AMKT.
No set of actors should seek to influence the set of assets included in the AMKT index or the constituent weighting on the basis of any measure not set forth in the community-approved methodology.
Once a list of assets has been decided upon according to the asset inclusion criteria in this constitution, they must be weighted.
On a regular basis, a proposal will be submitted by the DAO to rebalance and/or reconstitute the Index to reflect the latest market proportions.
Tokens must meet the following eligibility factors to be considered eligible for index consideration.
Criteria changes for eligibility are set by the DAO through the same governance process:
The rebalancing / reconstitution must as much as possible reflect the changes in the crypto market ecosystem in a non-discretionary fashion so as to remain true to its mission. As such, the index may not be rebalanced or reconstituted into a methodology that would deviate from the goal of the DAO.
A positive vote to adopt the proposal of a re-balancing / reconstitution of the AMKT Index by a Resolution Quorum results in the proposal being approved. A rebalance / reconstitution proposal may only be passed if no other rebalance / reconstitution proposal has been passed in the previous 3 months and the governance multi-sig interprets this reconstitution to be in line with the Constitution. In the event of extreme market turbulence or other exigent circumstances, the DAO or the Governance Multi-Sig may propose an emergency rebalance or reconstitution. The resulting proposal would revise eligibility criteria amongst current AMKT Index constituents to ensure the Index continues to represent the market, and to ensure solvency to the Index token holders and stability to the AMKT network.