# DAO

## Phase 1 — Foundation & Control&#x20;

**Who controls it:** Core AxonDAO entities, AXON DAO LLC, by AXDT INC.

\
**Why:** Speed, safety, execution

Centralized execution of:

* GPU infrastructure procurement & ops
* App and protocol development
* Security, compliance, and treasury custody
* Regulatory Adaptations

DAO participation is **advisory + signaling**

* AXGT is live, utilities active, governance scoped

### ***Exit criteria to Phase 2***

* Live revenue from compute + apps
* Stable infrastructure uptime
* Verified data pipelines
* Non-custodial token contracts finalized
* Hybrid 'Automatic' Revenue

### Phase 2 — Shared Governance (Hybrid DAO)

**Who controls it:** Core team **+** AXGT holders\
**What changes:** Authority starts moving on-chain

AXGT holders vote on:

* Research funding allocations
* &#x20;1 per quarter
* New project admissions
* Parameter changes (fees, access rules)
* Treasury actions move to:
  * **Multi-sig with DAO signers**

Infrastructure remains professionally operated, but:

* SLAs
* pricing bands
* expansion approvals\
  become DAO-approved

**Exit criteria to Phase 3**

* DAO successfully executes multiple funding cycles
* On-chain proposals with real economic impact
* No single actor required to approve core actions

### Phase 3 — Protocolized Infrastructure

**Who controls it:** The protocol

* Compute access becomes:
  * Permissionless
  * Token-gated
  * Priced algorithmically
* Data contribution & access:
  * Governed by smart contracts
  * Enforced via zk + cryptographic consent
* AxonDAO entities shift to:
  * Operators
  * Contributors
  * Service providers (not controllers)

> Humans stop approving routine actions — code does.

### Phase 4 — Full Decentralization (End State)

**Who controls it:** The network

* AxonDAO core entities **cannot**:
  * Change rules
  * Redirect treasury
  * Gate access
* Governance is:
  * On-chain
  * Token-weighted
  * Transparent
* Infrastructure operators compete or rotate
* AxonDAO becomes:
  * A **protocol steward**
  * Not a controlling company

### What “exit to decentralization” means.

* AxonDAO **does not exit by selling**
* AxonDAO **exits by making itself unnecessary**
* **AXGT & AXONDAO are 100% Autonomously Decentralized**

***Control migrates from:***

> ### **founders → DAO → smart contracts**


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