MAAL Validator DAO

Table of Contents

1. Introduction

2. DAO Structure

   • 2.1 Membership and Ranking

   • 2.2 Governance

   • 2.3 Revenue Sharing

3. Technical Details

   • 3.1 Smart Contracts

   • 3.2 Voting Mechanism

   • 3.3 Revenue Distribution

4. Security Measures

5. Conclusion

1. Introduction

Welcome to the MAAL Validator DAO (Decentralized Autonomous Organization) proposal. This document outlines the technical details and structure of a DAO designed to manage and govern the MAALChain network. The MAALChain network relies on a set of validators, and this DAO aims to provide these validators with a mechanism for participating in the network's governance and sharing in its success.

2. DAO Structure

2.1 Membership and Ranking

The MAALChain Validator DAO consists of the 150 DAO validators, which are ranked based on their MAAL coin holdings and KYC verification check. These validators are divided into three tiers according to their coin holdings, with the top tier having the highest coin holdings and influence over the network's governance. Membership in this DAO is determined by holding the MAAL Validator NFT, which is minted and distributed to the 150 DAO validators only. These NFTs embody ownership of DAO validator rights and are eligible for transfer only after a 5-year period. They may be offered for resale among validators, who will have the first refusal right, (however each Validator can hold no more than 2 Validator NFTs at any time to avoid the Monopoly influence over the DAO but not stopped from holding additional Maal Coins). In the event that consensus among existing validators cannot be reached to exercise this right, the NFTs can be sold to any other party seeking to become a DAO validator, provided they undergo KYC approval prior to the transfer. Should neither of these options be feasible, holders have the choice of liquidating their MAAL coin holdings at prevailing market rates.

The tiers are as detailed below:

Tier	Min. Maal Coin Holding	Max Validators
I	14,285,714 MAAL	10
II	2,500,000 MAAL	40
III	222,222 MAAL	100
		150

** As of November 2nd, 2023, MAAL coin has been listed on P2B exchange and is actively being traded. Interested participants will have to buy MAAL coins at prevailing market rate. **

Tier Assignment and Transition Rules

Once a validator is successful with his application to become a MAALChain DAO Validator, the following rules apply:

• Shariah Compliance: The Validators agree that the MAALChain Validator DAO will be operated in alignment with Sharia principles.

• Tier Assignment: Based on their Minimum MAAL coin holdings that are pledged during their application Validators shall be assigned to the respective tiers as per the chart above.

• No Automatic Tier Changes: There are no automatic tier changes for validators. In other words, validators will not be moved to a different tier based on fluctuations in their coin holdings. The initial tier assignment remains constant and hence the choice should be made before applying for a particular tier.

• No Automatic Upgrading of Tiers based on Vested Coin Holding: The only way for a validator to change tiers is by applying for a place in a particular tier. Once placed in a tier, the ranking is based on fluctuations in their coin holdings within that tier.

For example: A person buys a tier III NFT by vesting 222,222 MAAL coins (subject to KYC verification pass) and gains tier III validator rights in MAAL Validator DAO. If the same person were to decide to add more coins to his/her validator NFT and adds 3,000,000 MAAL coins and vests. This would take his/her total holding to 3,222,222 MAAL coins making it more than the tier II validator NFT. Though the person would have more coin holdings than a tier II validator NFT, the person can't migrate to tier II and can only be ranked 1st within tier III if all other 99 validators within tier III hold less than 3,222,222 MAAL coins.

• Ranking Within Tiers: Ranking within tiers is determined on the basis of fluctuations in MAAL coin holdings as explained in the example above. However, Top Government Organisations/ Religious Institutions can be provided the top ranking within their respective tiers to promote active participation and endorsement.

2.2 Governance

Validators within the DAO will have the power to vote on proposals for the further development and management of the MAALChain network. Proposals can include network upgrades, changes to consensus rules, and other important decisions. Each validator's voting power is proportionate to their tier and coin holdings, ensuring that those with the highest stake have the most significant influence on the network's direction.

Tier 1 validators have 50 votes each (10 validator slots) with combined weightage of 500 votes

Tier 2 validators have 10 votes each (40 validator slots) with combined weightage of 400 votes

Tier 3 validators have 1 vote each (100 validator slots) with combined weightage of 100 votes

Total combined weightage of all three tiers is 1000 votes. If there is a tie on a proposal, the decision will be made on the basis of proportional MAAL coin holding of voters in favor or against the proposal.

2.3 Revenue Sharing

One of the core functions of the MAALChain Validator DAO is revenue sharing. The DAO generates revenue from transaction fees on the MAALChain, RamzSwap, PanSea NFT Marketplace, and other ecosystem revenues. This revenue is distributed semi-annually among the 150 validators based on their respective tiers and coin holdings and the readiness of the business and actual realisation of the transactional revenues. Smart contracts deployed on MAALChain will automate this distribution process, ensuring transparency and fairness. All Validators share the risk as it requires 12 to 18 months from the initial ecosystem launch for transactional revenue to commence, following the successful precedents set by other blockchain platforms. Subsequently, the profit sharing will occur on a semi-annual basis.

3. Assumptions to Calculate the Sharing of Transactional Revenue

The calculations presented herein are founded on specific assumptions, illustrating the potential passive income that MAAL DAO validators have the opportunity to accrue.

US $ 10,000,000 Validator Pool	USD ($)	Validator Sharing Within Each Tier
$ 0.05 x 500 Million transactions	25,000,000
Deduct 40% OPEX	10,000,000	Shared Risk prior to generating the revenue & cost of setting up the servers nodes and other operations costs
EBITA	15,000,000
Total transaction income distribution	3,150,000	Shared Risk & profit among Validators
Balance of Revenue	11,850,000	Shared Risk and Shared Profit among entire MAALChain Community by way of value appreciation of MAAL coins
Distribution Ratio for Tier 1	50%	$ 1,575,000
Distribution Ratio for Tier 2	40%	$ 1,260,000
Distribution Ratio for Tier 3	10%	$ 315,000

** Following list of documents must be signed by the participants during their application for the MAAL Validator DAO and have to be agreed to be bound by the rules set in those documents. **

1. Disclaimer

2. Risk Warning

3. Information Memorandum

4. Application Form

To apply for MAAL DAO validator, send us an email to [e-mail]

4. Technical Details

4.1 Smart Contracts

The MAALChain Validator DAO relies on smart contracts deployed on the MAALChain network to execute its functions. These smart contracts are responsible for:

• Minting and distributing MAAL Validator NFTs to the 150 validators.

• Managing proposals and voting mechanisms for governance decisions.

• Calculating and distributing revenue shares to validator wallets based on tier and coin holdings.

• Handling any dispute resolution or arbitration processes that may arise within the DAO.

4.2 Voting Mechanism

Validators will vote on proposals using their MAAL Validator NFTs as voting tokens. The weight of their vote will be determined by their tier and coin holdings, ensuring a fair and proportional decision-making process. Proposals will be subject to a predefined quorum and majority vote threshold to ensure that only widely supported changes are implemented.

4.3 Revenue Distribution

Revenue generated by the MAALChain network and its associated platforms will be collected in a DAO-controlled treasury wallet. The smart contract will automatically calculate and distribute revenue shares to validator wallets semi-anually. The distribution will be based on each validator's tier and coin holdings, promoting a sense of alignment between validators' interests and the success of the network.

5. Security Measures

To ensure the security and integrity of the MAALChain Validator DAO, several security measures will be implemented, including:

• Multi-signature wallets for key transactions and fund management.

• Regular security audits of the smart contracts by independent experts.

• A robust dispute resolution mechanism to address any conflicts or disputes that may arise within the DAO.

• A transparent and publicly accessible record of all DAO activities and decisions on the MAALChain blockchain.

6. Conclusion

The MAALChain Validator DAO represents a significant step toward decentralizing governance and revenue sharing within the MAALChain network. By allowing the 150 validators to actively participate in network governance and share in its success, this DAO aims to create a more inclusive and equitable ecosystem. Through smart contracts and transparent processes, the MAALChain Validator DAO will contribute to the long-term sustainability and growth of the MAALChain network. The MAAL Validator DAO operates in strict adherence to Sharia principles, devoid of any central authority that might accumulate substantial holdings of MAAL Coins, be it as a founder, developer, or promoter. Instead, decisions are exclusively entrusted to DAO Validators, setting it apart from conventional blockchain systems.