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Abstract

This is the first governance proposal for the Zenland DAO. It bundles three foundational actions into a single vote:

1. Treasury Allocation — Distribute 19,000,000 ZEN tokens from the DAO treasury across three designated wallets for founding contributions, team compensation, and Zenland Labs incorporation reserve.
2. Agent Onboarding Grants — Send 2,000 ZEN tokens to each of the first three Zenland Dispute Agents as a registration and onboarding bonus.
3. Protocol Parameter Change — Increase the minimum stablecoin stake required for Dispute Agents from $1 to $10 in the AgentRegistry contract.

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Background & Context

The Zenland DAO was created using CreateDAO.org and governs the Zenland escrow protocol on Ethereum. At DAO creation, 1,000,000 ZEN tokens were distributed to the founding address, leaving 99,000,000 ZEN in the DAO treasury.

This proposal addresses three immediate needs:

• Compensating the founding team and allocating operational tokens for the protocol's growth phase.
• Incentivizing the first Dispute Agents to register on the platform, providing real collateral and arbitration coverage from day one.
• Raising the agent minimum stake to better align agent skin-in-the-game with the protocol's security model.

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Part 1 — Treasury Allocation: 19,000,000 ZEN

Proposed Distribution

Total transferred from treasury: 19,000,000 ZEN Treasury balance after: ~80,000,000 ZEN (80% of total supply)

Note on vesting: These are liquid transfers. Future team allocations should use time-locked vesting.

Rationale

The Zenland protocol is live on Ethereum and governed by this DAO. The core contributors who designed, built, and deployed the protocol — including the smart contracts, frontend, and dispute resolution system — have not yet been compensated via the treasury. This allocation reflects the work done to bring Zenland to mainnet.

The 10,000,000 ZEN allocation to the Main Zenlander Wallet is specifically earmarked for the formation of Zenland Labs — an off-chain legal entity (such as a Delaware C-corp or Cayman foundation) that will represent the DAO's interests in the real world. This is a standard structure used by major DeFi protocols: Uniswap Labs, OP Labs, Compound Labs, and the Ethereum Foundation all operate as distinct legal entities alongside their respective DAOs. Zenland Labs would be able to sign contracts, hire contributors, hold IP, and engage with partners on behalf of the protocol — while remaining accountable to the DAO through governance.

The remaining 80,000,000 ZEN in treasury ensures the protocol has ample runway for future grants, liquidity incentives, agent rewards, and community growth initiatives.

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Part 2 — Agent Onboarding Grants: 2,000 ZEN Each

Proposed Distribution

Total agent grants: 6,000 ZEN

Rationale

Dispute Agents are a critical part of the Zenland protocol. They stake collateral, respond to disputes, and carry reputational risk. Without active agents, escrows requiring arbitration cannot proceed.

These are the first three Dispute Agents to register on the platform. To recognize their early commitment and help offset the cost of staking, each agent receives:

• 1,000 ZEN as a registration grant — acknowledging the work of onboarding and understanding the dispute system.
• 1,000 ZEN as an early-agent bonus — a one-time incentive for being among the founding agents who make the protocol viable at launch.

These tokens are separate from and do not affect the agent's stablecoin or DAO token stakes, which are required independently for agent registration in the AgentRegistry.

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Part 3 — Protocol Change: Increase Minimum Agent Stablecoin Stake

Current vs. Proposed

Rationale

The current minimum of $1 was set as a conservative default at deployment. A minimum of $10 better reflects the protocol's security needs:

• MAV leverage: An agent staking $10 can arbitrate contracts worth up to $200 (using the current 20× MAV multiplier). The $1 minimum allowed agents to arbitrate only $20 contracts — too low for meaningful accountability.
• Skin-in-the-game: Higher minimum stakes ensure agents have genuine incentive to resolve disputes fairly, since their stake is slashable by the DAO for misconduct.
• Spam deterrence: A slightly higher barrier reduces the risk of low-quality or bad-faith agent registrations.

Existing agents are not affected retroactively — this change only applies to new registrations after the proposal passes.

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Summary of On-Chain Actions

All token transfers are executed from the DAO Treasury (Timelock). The setMinStablecoinStake call requires Timelock ownership of AgentRegistry.

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Risk Assessment

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Voting

• For: Approve all actions as described
• Against: Reject the proposal
• Abstain: No preference

If you believe any action should be separated into a standalone proposal, please comment in the Zenland DAO forum at DAOForum.org before the voting period begins.

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ZIP-001 — First governance action of the Zenland DAO.