Governance & Token Issuance

Zero’s internal token structure and governance is made up of three primary and two ancillary currencies each of which are coupled with an accompanying reputation (governance) token and DAO. Primary tokens in this context are defined as tokens that are contractually entitled to a direct contribution from the Infinity Reserve, whereas ancillary tokens are not entitled to automatic distributions. The underlying architecture and token utility of Infinity is outlined in Section 4.2.4, The Infinity Token. The following table articulates each of the currencies, along with their primary responsibility and governing DAO/Network:
Table: Zero Currencies
Token Name
Symbol
Responsibility
DAO / Network
Infinity
III
Operating Zero, facilitating token exchange, purchasing domains, and Credits for the Zero Grid.
zDAO
Zero DAO
DAO
Managing the Infinity Reserve and funding proposals to build  the Zero ecosystem.
zDAO
Zero Guild
GUILD
Managing the core development of the Zero Stack. 
Zero.Guild
ZNS
ZNS
Managing the primary ZNS Registrar Contract and setting the stakePrice for new Registries.
Zero.ZNS
Credit
CRED
Managing and maintaining a percentage of the Infinity Reserve to settle the redemption of Credit issued from The Creditor.
Zero.Cred
Zero’s Internal Token & Governance Structure
Similar to the various functioning aspects of a government, the aforementioned currencies each represent an independent aspect of governance for the Infinite Economy. For comparison, Infinity (III) itself could be viewed as analogous to the United States dollar, Infinity’s Reserve to the Federal Reserve and central bank, the DAO to the Congress and Senate, the GUILD to the Executive Branch, ZNS to federal and state registries, and CRED to the banking system responsible for the issuance of credit. This is an imperfect comparison, however still useful in understanding the various components Zero provides to support in the operation of a functional society.
Each of these DAO’s are fully sovereign and entirely responsible for managing their respective resources and responsibilities according to their own internal governance structure, and with the principles established in the Zero Constitution and InnerSource License. 
Infinity Configuration/
Infinity (III, ∞) is a Dynamic Token that utilizes ETH as its singular Reserve Token. Once deployed, Zero Members zDAO, Zero’s primary governing DAO, may vote to change Infinity’s underlying reserve currency or create a more stable basket of currencies using a multi-asset liquidity pool.
Infinity is a Dynamic Token (as outlined in Section 4.2.3 Dynamic Token) that will begin with an initial Reserve Ratio of 99%, and decrease at a rate of 3% (the Step Weight), to a minimum Reserve Ratio of 3%. The reduction of the Infinity Reserve requires a successful vote by zDAO, until the Infinite Economy reaches or exceeds a market capitalization of $9 billion (the Market Cap. Threshold). With each purchase of Infinity from its smart contract, the value of its reserve increases, stabilizing the economy and generating available capital that can be allocated by the community to fund the ecosystem.
The initial configuration of Infinity is as follows:
Reserve Token: Ethereum (ETH)
Reserve Ratio: 90% initially
Step Weight: 3%
Initial Supply: 99,999
Initial Reserve: 0.001 ETH
Initial Market Cap: 0.003 ETH
Initial Price (for 1 ETH): 0.00000003 ETH
As illustrated by the initial configuration, the starting market capitalization and purchase price of Infinity is effectively nil (hence, Zero), enabling the fair price of Infinity to be discovered by the market using genuine price discovery. The hope here is to operate in stark contrast to ICOs, where early token holders were taken advantage of using adversarial pricing mechanics. 
Infinity’s dynamic reserve model plays a key role in Zero’s model for incentivizing project and platform contributors, which include the various developers and stewards of Zero Networks, the Zero Stack, Zero Applications, Smart Objects, and other projects governed by the InnerSource license. Given that Zero will be able to draw on Infinity’s dynamic reserve to fund its operations as tokens are sold, the project does not need to rely on liquidating an initial supply of token for cash to pay contributors (or on paying contributors with liquid token, which amounts to the same thing economically). 
The following illustrates Infinity growth overtime based on Infinity’s initial configuration, as defined above.
From Zero to Infinity*
Table:  Infinity Pricing and Reserve Conditions*
USD Purchased*
3,400,000
34,000,000
340,000,000
3,400,000,000
34,000,000,000
In ETH
10,000
100,000
1,000,000
10,000,000
100,000,000
​
​
​
​
​
​
Market Cap. 
$10,303,031
$103,030,304
$1,030,303,031
$10,303,030,304
$103,030,303,031
Ending Token Price
$0.505
$2.360
$11.040
$51.638
$241.529
Reserve (at 90%)
10,000.00
100,000.00
1,000,000.00
10,000,000.00
100,000,000.00
Infinity Supply 
20,417,175.95
43,651,146.85
93,324,496.86
199,524,236.24
426,575,253.01
* Using an estimated ETH spot price of $350.00. Please note that this diagram does not indicate the estimated or future growth of Infinity Tokens, and rather illustrates the algorithmic price that results from different inputs based on the architecture and initial configuration of Infinity. Click here for a link to this tables worksheet.
Token Distribution/
The zDAO’s DAO token will be issued to reward existing and future contributors of the Infinite Economy. DAO tokens holders are responsible for governing excess funds from Infinity's dynamic reserve to develop the Zero Stack and Infinite Economy.  All DAO tokens issued for contributions prior to the deployment of Infinity will be locked for a period of thirty-six (36) months.

 DAO Token Distribution
A fixed total of 9,000,000 DAO Tokens will be issued as follows: 
30% for Existing Contributors: including founders, investors, and advisors, for the many individuals that have supported the development of Zero over the past five years.
30% for the Zero Guild: to incentivize new development projects, including app developers, protocol developers, and early Zero Network operators.
30% to the Credit DAO: to bootstrap the Zero Credit system to enable the redemption of internal hosting Credits for Infinity, in exchange for operating the Zero Grid.
10% to the One Foundation: Ten percent of DAO tokens will be reserved by The One Foundation, a New Zealand-based Charitable Trust, that will in its sole discretion have authority to spend its tokens and fund projects according to its charitable charter.
Future token issuances, including amounts, payout criteria, and locking schedules, will be determined solely by the internal governance of each respective DAO and corresponding token governance model, through the successful execution of proposals using Zero’s DAO-based governance system.
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