Governance
CGX DAO
As a decentralized autonomous organization (DAO), the CGX DAO relies on its community members to help drive forward its collective mission and goals. The DAO comprises dedicated community members committed to advancing the web3 gaming ecosystem and achieving mainstream adoption of consumer-focused applications running on PVP.
CGX holders can participate in governance activities, like voting within the DAO, by staking their tokens. This creates a community-driven approach to decision-making and ensures that all stakeholders have a say in the direction of the ecosystem.
PVP Council
Directing the optimal use of large funds in a decentralized and diplomatic manner is no small feat. For example, when creating a large gaming league, the interplay of player rights, IP ownership, and revenue management is a complex web of balancing incentives and politics. We believe there is an opportunity here to be the driving force contributing to the democratization of esports, making it more accessible and economically feasible worldwide.
The PVP Council will be the overarching governing body which oversees the general operations, growth, and development of the PVP ecosystem. The main purpose is to facilitate a fair and competitive environment for players and other stakeholders running applications on PVP. This will include:
- Input on new apps supported by PVP
- Distribution of the fees gathered by the PVP Sequencer
- Creation, structuring, and deployment of onchain gaming leagues
- Ongoing improvements to onchain league formats and payout structures
- Design of loot box, credits, and other ecosystem rewards
The council will consist of diverse stakeholders spanning game industry public figures, esports organizations, professional players, tournament organizers, and representatives from individual games and apps.
Working Groups
To ensure that the best ideas and solutions are brought to the table, working groups are spun up as needed to function as specialized task forces, using their expertise and skills to address complex problems that may arise within the DAO. By bringing together top talent from various backgrounds, the DAO is able to gather diverse perspectives and find innovative solutions that benefit the entire community.
Voting Power
Token holders who stake their CGX tokens gain voting power, enabling them to shape the strategic course of the CG Platform and surrounding PVP ecosystem. This governance authority allows holders to propose and vote on decisions. By leveraging their staked CGX tokens, holders not only influence changes to the PVP ecosystem but also earn rewards through active participation in the voting process.
Sequencer Fee Sharing
The sequencer fees generated from PVP will be used to reward relevant stakeholders in the PVP ecosystem. The initial fee-sharing mechanism is laid out below, however, the CGX DAO will be able to adjust this through Governance Proposals.
- CGX Stakers - 30% of sequencer fees will be allocated to users staking CGX token.
- Competition Rewards - 10% of sequencer fees will be assigned to the PVP Council for rewarding leagues, tournaments, and other social gaming applications running on PVP. A structured framework will be established to enhance distribution efficiency and ensure sustained alignment. Additionally, 5% of this allocation will be directed towards compensating PVP Council members for their contributions to ecosystem growth.
- App Developer Incentives - 10% of the sequencer fees will go towards builder grants to incentivize talented developers to build new consuming apps that have large mainstream appeal. Games and apps with the highest verified user traction and volume will also receive a portion of these developer incentives.
- CGX Treasury - 50% of sequencer fees will be sent into the CGX Treasury as a path to reinvesting into the PVP ecosystem. The treasury will also be used to fund Research & Development, compensate Service Providers, and establish a formal DAO Grants Program.
