A NEW FRONTIER IN GOVERNANCE
In Saga, currency holders are the sovereign. Accordingly, Saga’s governance is designed to facilitate genuine representation of participants and to generate long-term success for the currency. This is achieved through a multi-branch checks and balances governance structure.
Viable Governance for a Global Currency
Holders are the sovereign is our central premise.
Representing holders best means achieving a fine balance between effective management and the intensity and ways that holders are involved in governance.
For this we developed a multi-branch checks and balances structure optimally combining components from nation-states, corporations and decentralized systems. Read more...
Three Pillars of Inspiration
Code is Law refers to a legal system where all rules are written and enforced in computer code. In Saga we selectively integrated blockchain technology and decentralization components. For example, we use a smart contract for enforcing the execution of agreed-upon protocols and blockchain for making all transactions transparent and immutable. But unlike the common approach in the crypto market, decision-making processes are not subject to the rule of code. Instead, our governance is strongly inspired by Constitutional Law, as liberal democracies’ strive to ensure citizens’ representation and rights protection by means of power-balancing structures. In addition, Corporate Law inspired us to look for successful business practices for effectively operating on a global scope. Read more...
Saga’s Ultimate Governance Structure
The multi-branch checks and balances structure includes – the Executive Council – the currency’s executive agency; the Assembly – the holders’ deliberative entity run mainly by holders’ delegates; A Monetary Committee and other auxiliary entities.
To learn about Saga’s governance framework click forward and backward on the arrows.
Saga’s Participants, SGA holders, have the right to govern Saga. They exercise their sovereignty through elections to the Executive Council and participation in its Assembly.
The Executive Council is an elected team of experienced professionals in charge of managing Saga’s ecosystem and operations. Holders vote for the team of their choice through a dynamically balanced participant-stake voting system.
The Assembly is a place for all holders to sound their voice and participate in Saga’s governance. Holders are represented in the Assembly directly or through their delegate of choice. Voting power is based on the ‘one holder one vote’ principle.
The Assembly functions as the main check and balance for the Executive Council. The Assembly’s duties consist of monitoring, scrutinising and in extreme cases even dissolving the Executive Council.
The Constitutional Council is responsible for resolving any disputes between Saga entities brought before it. It is Saga’s equivalent of the supreme court in nation-states. As part of its role, the Constitutional Council interprets Saga’s constitution, ensuring that it is upheld.
The Monetary Committee is responsible for ensuring the long term stability and monetary soundness of the Saga currency. It is in charge of setting and implementing Saga’s monetary policy through a smart contract. The committee's structure and authority are inspired by the relative independence of central banks.
The Transparency Committee is appointed and guided by the Assembly, and serves as the transparency agent for oversight and disclosure. It supports knowledge-based deliberations in the Assembly and promotes the accountability of the Executive Council.
Resolving the Stake-Based vs. Participant-Based Voting Dilemma
In Saga, the currency holders are defined as sovereigns. But how should voting power be assigned among them? Nation states and corporations embrace opposite approaches. In corporations, as financial ventures, voting power is directly related to the number of shares held, i.e. stake-based voting. In nation-states, voting power follows the ‘one person — one vote’ principle. A thorough analysis led us to understand that voting power should obtain an appropriate balance between the two approaches. For this end we developed a dynamically balanced participant-stake voting method that considers concentration of holdings in the Saga economy for determining Individuals’ voting power. Learn more...
Beyond the Customer-Citizen Deadlock
Saga, as a representative non-nation state entity, is designed to be and demonstrate a breakthrough in human governance in correspondence with the digital revolution. As nation-states are finding it harder and harder to serve the evolving identities of their citizens, and while corporations are efficiently filling in such voids but are not designed to represent their customers, we as individuals are facing a citizen-customer deadlock. Neither the corporation nor the nation-state, lead to satisfactory fulfillment of individuals’ will. Non-nation-state representative entities such as Saga could pave a path beyond this deadlock and define a new class - the participant, by effectively representing and servicing holders side-by-side with nation-states and corporations. Read more...
Transferring control over Saga from the hands of Saga’s founding team to the currency holders will occur in a series of intermediary steps. A three-year milestone-based process for the transfer of power is detailed in the governance whitepaper. During this period an Intermediary Board of Directors will act as the executive body while other governing bodies will gradually form and join in. The Intermediary Board will only hold limited powers. For example, in will not be able to amend Saga’s monetary model. Following the first milestone, within a year from the launch of SGA, currency holders will be able to replace the Intermediary Board of Directors.
Saga’s currency holders require a governance system for exercising their sovereignty over Saga. This document presents the intended governance model and describes its seven main features. It also presents the fundamental principles and values that are the basis of the model’s design.
The provisional constitution states Saga’s essential framework of rules and norms. It delineates how the currency holders’ sovereignty is legally and structurally established. The Provisional Constitution will serve Saga until a permanent constitution is ratified by Saga’s Assembly - a governance entity defined in this document and scheduled to be set up within 24 months following the launch of the Saga currency.
The infographic presents a solution to a power distribution dilemma in Saga, relevant to many financial-network projects: — should voting power be based on stake or should it be per participant? It illustrates why voting power should attain an appropriate balance between the two approaches as well as Saga’s unique solution — Democonmoy voting.