9.5 Transition to full community control

ARX follows a structured decentralization path that transitions from foundation-led oversight to full community-led DAO governance. This gradual approach is designed to maintain operational stability and high security standards while progressively empowering token holders to take ownership of the ecosystem.

Phase 1: Foundation Governance (Bootstrapping)

In the initial stage, the ARX Foundation acts as the primary steward of the network.

• Treasury Operations: Managed via a secure, controlled multi-signature (Multi-sig) structure.

• Network Security: The Foundation focuses on code audits, bug bounties, and stabilizing core infrastructure.

• Oversight: Strategic decisions are led by core contributors to ensure the long-term vision remains intact during the critical launch window.

Phase 2: Hybrid DAO Activation (Co-Governance)

As the network matures and the token distribution broadens, the Hybrid DAO phase begins.

• DAO Functionality: Token holders gain the ability to submit on-chain proposals, vote on protocol parameters, and allocate community budgets.

• Shifting Roles: The Foundation transitions from a "director" to a "coordinator," focusing on legal compliance, cross-chain partnerships, and ensuring DAO votes align with the technical roadmap.

• Shared Control: High-impact changes require a dual-consensus between the community vote and the Foundation’s security multi-sig.

Phase 3: Full DAO Governance (Independence)

The final milestone marks the achievement of Complete Decentralization.

• Direct Control: The DAO assumes 100% control over all governance logic, treasury assets, and the upgradeability of smart contracts.

• The Legal Wrapper: The ARX Foundation remains solely as a legal entity under Swiss Law to provide legal and regulatory representation for the protocol in the physical world (e.g., signing contracts or managing IP).

• Self-Sovereignty: The protocol becomes a public good, governed entirely by its global participants.

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The Safety First Approach This phased transition protects the network from "governance attacks" or premature radical changes. By delegating power as the community grows, ARX ensures that the DAO is well-prepared and educated before taking full responsibility for the treasury.

Swiss Regulatory Framework By maintaining a lean Foundation in Phase 3, ARX provides the DAO with a "legal personhood" recognized under Swiss jurisdiction. This allows the decentralized community to interact with traditional financial systems and legal frameworks while remaining fundamentally autonomous.