Abstract
This operating model functions like a living organism, where every component is interdependent yet specialized. Small teams much like organs perform specific actions and later unite at higher levels to achieve broader functions. Fans (token holders) can propose functions (goals) for Allo Capital to pursue. Allo Leads manage finance distribution, guided by the sentiment and decisions of Allo Organizations, Builders, and Token Holders. Ultimately, the community defines the broader environment, proposing goals and participating in the process for updating or retiring functions. This proposal primarily addresses the operations of the Intelligence and Software pillars, while also outlining a high-level structure for the Fund pillar using Hats Protocol.
Fa-Fo-Fu-Fi
This section details the four key elements: Fans, Form, Function, and Finance. Note that Fans are discussed last because they interact with all three other elements. The accompanying diagrams illustrate the proposal, update, and deletion phases for each element.
Form (Team)
- Teams consist of up to seven individuals (like organs), each with a core focus (e.g., engineering, onsite research, business development, etc.).
- Each form votes internally to establish and align on key objectives.
- When decisions are made at a higher level for a function, the form casts one collective vote based on its internal majority.
- This specialized focus ensures clarity and robust ownership of responsibilities.
Function (Goal)
- Multiple forms come together to execute a “function” under the respective umbrella of either Intelligence or Software.
- Each function aggregates the votes and inputs from its constituent forms.
- This design allows for dynamic structures where various functions may require different forms to achieve their objectives.
- Note: This structure is currently implemented only within the Intelligence and Software pillars.
Finance (Budget)
- Funders, Organizations, and Leads can propose budgets for different functions.
- Once a budget is established, working capital leads have the authority to adjust it as necessary.
- Token Holders review and approve finance proposals and express their sentiment regarding any updates or removals.
- This framework maintains a balance between operational autonomy and broader stakeholder oversight.
Fans (Token Holders)
- Fans comprise Organizations, Leads, Builders, Funders, and Allo supporters.
- Their primary influence lies in proposing and approving functions for Allo Capital.
- While fans can express their views on updates to functions or budgets, they do not directly dictate outcomes.
Diagrams
The following diagrams illustrate two distinct value flows clockwise and counterclockwise, highlighting how the four elements interconnect to create a reinforcing loop. As long as robust forms are created and functions are executed, Allo Capital should experience growth. Additional elements such as sweat equity can also factor into this value flow. These diagrams offer a high-level overview that can be further detailed as needed.
Clockwise Value Flow
Counter Clockwise Value Flow
Hats Protocol Proposal
Hats Protocol is an excellent onchain tool that not only defines and manages these elements but also provides clear visualization of an entity’s structure, establishes robust onchain permissions and roles, and serves as a foundation for iterative DAO growth. It also integrates with other protocols such as Safe and Unlock for added convenience. The tree structure is strongly defined by the three pillars outlined in What is Allo.Capital: Intelligence, Software, and Fund.
Intelligence
The Intelligence structure is straightforward, consisting of two levels: functions and forms. As described earlier, functions are proposed and, using Hats Protocol, the onchain process can define new functions and tie them to a voting mechanism. The image also captures the dynamic potential of forms, some emphasizing collaboration (onsite teams & remote experts) and others encouraging healthy competition (e.g., between regional entities like Brasil and Colorado Government).
Software
Similar to the Intelligence pillar, the Software structure also comprises two levels: functions and forms. The functions highlighted in the tree include projects/products such as Allo Yeeter and Cookie Jar. In Allo Yeeter, forms adopt a collaborative/competitive approach, each focusing on distinct features with minimal overlap. In the Cookie Jar context, the forms work in a more complementary and collaborative fashion, one form emphasizes community growth while the other focuses on engineering.
Fund
The Fund pillar employs a more traditional structure, with no subdivisions into functions or forms. This is designed to create a stable framework for financial operations, optimizing for long-term success and preventing stagnation. The Fund pillar is divided into three branches:
- Venture Capital: Managers here control funds from investors and allocate them to the Treasury and Working Capital pools.
- Treasury: This pool pursues low-risk, yield-generating opportunities to build sufficient capital.
- Working Capital: Managed collaboratively among Intelligence and Software functions, this pool supports the execution of proposed function initiatives.
Allo Hierarchy
This section outlines the hierarchy within Allo Capital. Drawing inspiration from the Costco model, which prioritizes customers and members, the structure ensures that organizations remain the top priority. While token holders might seem low in the hierarchy, they form the foundation upon which everything else is built.
- Organizations (DAOs, Nonprofits, Governments):
Entities such as GitCoin, Optimism, and Celo, as well as traditional government and nonprofit bodies are the most critical stakeholders. Addressing their pain points and leveraging opportunities is essential. - Leads:
The decision-makers at Allo Capital who influence the Fund pillar and, by extension, the Intelligence and Software functions. - Builders:
The individuals who make up the forms executing the defined functions. They require sufficient autonomy to innovate without constant financial oversight. - Funders:
Investors seeking ROI by backing tools and research that will shape future capital allocation. - Token Holders:
Individuals or groups holding Allo tokens for both governance and speculative purposes.
Closing
In conclusion, this proposal outlines a high-level, dynamic, and scalable structure based on three core pillars. The alliterative concept, Fans, Form, Function, and Finance (or alternatively, Tokenholders, Teams, Goals, and Budget) is intended to symbolize and encapsulate the underlying principles of this model. I am excited to explore further proposals and identify areas where we can connect and complement each other.
Inspired by:
