ORGANIZATIONAL DECLARATION OF THE AXIE INFINITY DIGITAL NATION
ALSO KNOWN AS THE AXIE INFINITY DECENTRALIZED AUTONOMOUS ORGANIZATION
Axie Infinity is a digital universe in which digital assets enable users to engage therein, and, by design, the creators of Axie Infinity envisioned and created a Community Treasury for furtherance of this digital universe. By this Organizational Declaration, the Axie Infinity Digital Nation (the Axie Infinity Decentralized Autonomous Organization or “Axie DAO”) hereby organizes and establishes itself for the non-exclusive purposes of its general welfare, structural framework, common goals, and self-preservation.
ARTICLE I – ESTABLISHMENT
Section 1. Axie Infinity Shards (AXS). The fundamental purpose of AXS is to act as a representation of fractional ownership of the Axie DAO.
Section 2. Initial AXS Issuance. Implementing blockchain technology, from November 4 2020 to April 4 2026, the sum total of 270,000,000 AXS tokens shall be issued and distributed in accordance with the published tokenomics.
Section 3. Strategic Issuance. Prior to April 4, 2026 portions of the AXS issuance shall be subject to strategic distribution, particularly the “Play and Earn” and “Ecosystem Fund” allocations. Also, all funds in the Community Treasury shall be subject to strategic distribution. All funds that are subject to strategic distribution require Governance.
Section 4. Perpetual Viability. Funds inflowing to the Axie DAO are necessary for its continued existence and function. Governance is required to ensure sufficient inflow to the Axie DAO.
Section 5. Axie DAO Purpose. The purpose of the Axie DAO is the furtherance of Axie Infinity. The furtherance of Axie Infinity fundamentally requires, without limitation, all property, actions, technology, items and any and all other things necessary to make Axie Infinity exist (the “Axie Metaverse”) as well as engaging developers to innovate, engineer, design, create and implement the products, applications, assets and any and all things for the Axie Metaverse (the “Axie Developers”). All of these tasks require Governance.
Section 6. Axie Digital Assets. Fundamental to Axie Infinity’s persisting existence are the digital assets of Axie Infinity, which include Axies, Lands, Items, Accessories, Runes and Charms and any and all digital properties that are specific to Axie Infinity (“Axie Assets”).
Section 7. Digital Tokens. Tokens are utilized by Axie Infinity to facilitate interactions within its digital economy, for example SLP.
ARTICLE II – CITIZENSHIP
Section 1. Qualification. A Citizen of Axie Infinity is any person who owns: (a) (i) at least one full AXS, or (ii) at least one Axie, and (b) remains in good standing.
Section 2. Rights. A Citizen of Axie Infinity is qualified to the minimum level of participation in the Axie DAO and is considered a member of the Axie Infinity Community. Citizenship is required to participate in any form of Governance.
Section 3. Responsibilities. A Citizen of Axie Infinity is required to observe all terms and conditions of the Axie Metaverse as well as the “Code of Conduct” enacted by the Axie DAO. Failure to comply will result in poor standing and revocation of any rights of a Citizen. The determination of standing requires Governance.
Section 4. Contributors. An Axie Infinity Contributor is a Citizen of Axie Infinity who has qualified for and presently holds the status of a “Contributor” through the Axie Infinity Contributors Program.
ARTICLE III – VOTING
Section 1. Base Voting Unit. The base voting unit for the Axie DAO for any Voting Matter shall be a single, whole AXS. AXS holdings will be determined by use of a Blockchain Snapshot and any AXS must be staked at the time of the Blockchain Snapshot to be used for voting.
Section 2. Citizenship Required. Only Citizens of Axie Infinity may vote on a Voting Matter.
Section 3. Voting Power. When voting on a Voting Matter, the vote of a Citizen shall be weighted in accordance with the Voting System. The Voting System is crucial to the Axie DAO, it is therefore set forth herein, however, the evolving nature of Axie Infinity requires that the Voting System be regularly updated through Governance. Voting within the Axie DAO is on the basis of cumulative weighted voting.
Section 4. Voting System. Voting on Voting Matters shall be held as required by Governance. The method for tallying the votes and determining the results shall be through computing a Citizen’s base voting units and adding additional voting weight that is rewarded for ownership of certain assets and activities deserving merit (historically referred to as “Axie Score”), initially based upon the modifiers as follows:
Category Voting Modifier (“Axie Score”)
Normal Axies Additional 10% weight for every 10,000 Axies
Summer Axies Additional 10% weight for every 1,000 Summer parts
Japanese Axies Additional 10% weight for every 300 Japanese parts
Holiday Axies Additional 10% weight for every 50 Holiday parts
Origin Axies Additional 10% weight for every Origin Axie
Mystic Axies Additional 10% weight plus 10% for every Mystic part
Agamogenesis Axies Additional 150% weight for every Agamogenesis Axie
Savannah Land Additional 10% weight for every 20 Savannah Lands
Forest Land Additional 10% weight for every 6 Forest Lands
Arctic Land Additional 10% weight for every 2 Arctic Lands
Mystic Land Additional 10% weight for every Mystic Land
Genesis Land Additional 100% weight for each Genesis Land
Contributor (Tier I) Additional 10% weight
Contributor (Tier II) Additional 20% weight
Contributor (Tier III) Additional 30% weight
Contributor (Tier IV) Additional 40% weight
After applying these modifiers to augment a Citizen’s total base voting units, the result shall be the Citizen’s total vote on any Voting Matter.
ARTICLE IV – COUNCILS
Section 1. Council Formation. The Axie Infinity Digital Nation requires Governance Councils to consider and perform tasks necessary to fulfill its purposes. These Councils shall be self-governing as individual governance bodies and shall perform all necessary functions required to accomplish the tasks for which each Council is responsible.
Section 2. Initial Composition. Each Governance Council shall consist of no less than six members and should, at all times, be composed of an even number of members. If any Governance Council does not meet these requirements, that Governance Council shall be adjourned until the minimum requirements are fulfilled.
Section 3. Appointed Members. The Game Developer for Axie Infinity (the “Developer”) shall have the right to seat and appoint one-half of the membership of each Governance Council.
Section 4. Elected Members. The remaining one-half of the membership of each Governance Council shall be seated through elections. A Citizen must have the status of Contributor to be a candidate for a seat on any Governance Council. For any open seat, any Contributor may put forth their name as a candidate for that seat. Thereafter, the Contributors shall vote on the pool of candidates through the voting system that is adopted by the Contributors (such as cumulative voting or ranked choice voting). The candidate(s) with the winning vote(s) shall be elected for the open seat(s) on the Governance Council. Elected members of Governance Councils shall be compensated for their service.
Section 5. Primary Councils. There shall be three Governance Councils that are primary in importance and existence. These three Governance Councils shall exist and persist at all times. The names of these three Governance Councils are (i) the Lunacian High Council, (ii) the Growth and Economic Council, and (iii) the Treasury and Funding Council. These primary Governance Councils are responsible for enacting rules, laws, regulations, decisions, determinations, spending, proposals, and the like that will have actual and real effect on and constitute the actions of the Axie Infinity Digital Nation.
Section 6. Secondary Councils. There shall be any number of Governance Councils that are secondary in importance and existence. These secondary Governance Councils shall be tasked with the purposes set forth by their instigating body. Secondary Governance Councils may be formed by (i) any primary Governance Council or (ii) through a vote and act of the Contributors and ratification by at least one primary Governance Council.
Section 7. Lunancian High Council. The scope of the Lunacian High Council shall include all executive actions necessary for the furtherance of the Axie Infinity Digital Nation and shall include all actions necessary to execute the declarations, programs and directives that are established, directed and demanded by the Growth and Economic Council and shall be funded by the Treasury and Funding Council for these purposes.
Section 8. Growth and Economic Council. The scope of the Growth and Economic Council shall include consideration of all factors that are promoting and inhibiting the economic, enjoyment and general utility of the Axie Infinity Digital Nation and the experiences included therein, and establishing directions, proposals, determinations and plans to be demanded of and implemented by the Lunacian High Council for these purposes. The Growth and Economic Council shall only receive funding from the Treasury and Funding Council as necessary to compensate the elected members and the Growth and Economic Council shall have no power to act or put anything into action on its own.
Section 9. Treasury and Funding Council. The scope of the Treasury and Funding Council shall include the scrutiny, care, analysis, and assessment necessary to safeguard the funds identified for strategic distribution and to utilize, pay over, distribute, and spend such funds as determined by the Treasury and Funding Council to be feasible and rational and aligned with the furtherance of the Axie Infinity Digital Nation, taking into account the recommendations and proposals of the Lunacian High Council and the directions and demands of the Growth and Economic Council.
Section 10. Term of Service. Any term of service for membership on a Governance Councils is a maximum of two years. Members may serve multiple terms in succession if appointed or elected and each Governance Council may adopt its own policies, practices, and procedures regarding term limits, disqualification events, and the like.
ARTICLE V – AMENDMENT
Section 1. Axie Score Exception. The “Axie Score” shall be modified as deemed necessary by the appropriate Governance Council and does not require the amendment of This Organizational Document.
Section 2. Amendment of Declaration. This Organizational Declaration may be amended either through (i) a vote to amend that is supported by at least 75% of the total possible cumulative weighted voting of the Citizens or (ii) a vote to amend that is supported by the affirmative vote of at least two-thirds of the total membership of the primary Governance Councils.