district0 x​ ​NetworkWhite​ ​Paper​ ​v0.3September​ ​14th,​ ​2017A​ ​cooperative​ ​of​ ​decentralized​ ​marketplaces​ ​and​ ​communities.Powered​ ​by​ ​Ethereum,​ ​Aragon,​ ​and​ ​IPFS.Matus​ ​Lestanmatusdistrict0 x.ioJoe​ ​Urgojoedistrict0 x.ioAlexander​ ​Khoriatyalexanderdistrict0 x.io2AbstractIn​ ​this​ ​paper,​ ​we​ ​offer​ ​an​ ​overview​ ​of​ ​the​ ​district0 x​ ​Network,​ ​a​ ​collective​ ​of​ ​decentralizedmarketplaces​ ​and​ ​communities,​ ​hereafter​ ​referred​ ​to​ ​as​ ​districts.Districts​ ​exist​ ​as​ ​decentralized​ ​entities,​ ​built​ ​upon​ ​a​ ​standard​ ​open​ ​source​ ​frameworkcomprised​ ​of​ ​Ethereum​ ​smart​ ​contracts​ ​and​ ​front-end​ ​libraries,​ ​hereafter​ ​referred​ ​to​ ​asd0 xINFRA.d0 xINFRA​ ​provides​ ​districts​ ​with​ ​core​ ​functionalities​ ​that​ ​are​ ​necessary​ ​to​ ​operate​ ​anonline​ ​marketplace​ ​or​ ​community.​ ​Namely,​ ​the​ ​ability​ ​for​ ​users​ ​to​ ​post​ ​listings,​ ​filter​ ​andsearch​ ​through​ ​listings,​ ​rank​ ​peers​ ​and​ ​amass​ ​reputation,​ ​and​ ​send​ ​invoices​ ​and​ ​collectpayments.​ ​The​ ​d0 xINFRA​ ​framework​ ​is​ ​designed​ ​to​ ​be​ ​open​ ​and​ ​extendable,​ ​allowingdistricts​ ​to​ ​be​ ​customized​ ​and​ ​granted​ ​additional​ ​functionality​ ​through​ ​the​ ​use​ ​of​ ​auxiliarymodules.We​ ​also​ ​introduce​ ​the​ ​district0 x​ ​Network​ ​Token​ ​in​ ​order​ ​to​ ​facilitate​ ​open​ ​participationand​ ​coordination​ ​across​ ​the​ ​network​ ​while​ ​providing​ ​protections​ ​from​ ​malicious​ ​actors.The​ ​district0 x​ ​Network​ ​Token​ ​is​ ​a​ ​multi-utility​ ​token​ ​which​ ​is​ ​required​ ​for​ ​application​ ​tothe​ ​district0 x​ ​Network,​ ​utilized​ ​in​ ​an​ ​incentivized​ ​voting​ ​game​ ​to​ ​dictate​ ​access​ ​to​ ​a​ ​suiteof​ ​ancillary​ ​services​ ​exclusive​ ​to​ ​network​ ​members,​ ​used​ ​to​ ​signal​ ​support​ ​or​ ​disapprovalfor​ ​proposals​ ​made​ ​by​ ​network​ ​participants,​ ​and​ ​which​ ​can​ ​be​ ​staked​ ​to​ ​deposit​ ​pools​ ​tomint​ ​tokens​ ​providing​ ​district-specific​ ​rights​ ​on​ ​third-party​ ​plats.3Table​ ​of​ ​ContentsIntroduction 4Districts 5d0 xINFRA 8Auxiliary​ ​Modules 9Governance​ ​by​ ​Aragon 1​0The​ ​District​ ​Registry 1​1district0 x​ ​Network​ ​Token 1​4district0 x​ ​Network​ ​Token​ ​Distribution 1​6Roadmap 1​7Projected​ ​Use​ ​of​ ​Contributions 1​8Management​ ​of​ ​Contributions 19Transparency​ ​Policy 20Team 21Appendix 224IntroductionIn​ ​recent​ ​years,​ ​the​ ​economic​ ​powers​ ​of​ ​decentralization​ ​have​ ​materialized.​ ​Uber​ ​hasdisintermediated​ ​transportation​ ​and​ ​achieved​ ​a​ ​valuation​ ​of​ ​69B.​ ​Airbnb​ ​has​ ​made1similar​ ​disruptions​ ​in​ ​the​ ​lodging​ ​sector,​ ​giving​ ​them​ ​a​ ​value​ ​of​ ​31B​ ​by​ ​most​ ​recent2measures.​ ​Entrenched​ ​conglomerates​ ​are​ ​being​ ​uprooted​ ​by​ ​upstarts​ ​who​ ​realize​ ​thatvalue​ ​is​ ​in​ ​the​ ​network​ ​effect​ ​of​ ​their​ ​users,​ ​rather​ ​than​ ​the​ ​cost​ ​of​ ​physical​ ​assets​ ​theyown​ ​or​ ​expend.While​ ​customers​ ​of​ ​these​ ​services​ ​have​ ​enjoyed​ ​lower​ ​prices​ ​and​ ​better​ ​userexperiences​ ​relative​ ​to​ ​those​ ​available​ ​in​ ​the​ ​past,​ ​they​ ​are​ ​still​ ​subject​ ​to​ ​higher​ ​coststhan​ ​they​ ​would​ ​be​ ​without​ ​for-profit​ ​third-parties​ ​extracting​ ​fees​ ​and​ ​they​ ​have​ ​little​ ​sayover​ ​the​ ​evolution​ ​of​ ​these​ ​plats.​ ​Despite​ ​business​ ​models​ ​relying​ ​upon​ ​sustainingmassive​ ​user​ ​bases​ ​that​ ​allow​ ​them​ ​to​ ​operate​ ​at​ ​scale,​ ​users​ ​have​ ​no​ ​means​ ​ofparticipating​ ​in​ ​the​ ​value​ ​creation​ ​reaped​ ​from​ ​their​ ​use​ ​of​ ​these​ ​centrally​ ​controlledplats.​ ​Until​ ​recent​ ​advancements​ ​in​ ​trustless​ ​network​ ​design,​ ​network​ ​participantshad​ ​few​ ​reliable​ ​means​ ​for​ ​self-organizing​ ​without​ ​a​ ​centralized​ ​party.The​ ​advent​ ​and​ ​subsequent​ ​development​ ​of​ ​the​ ​Ethereum​ ​protocol​ ​has​ ​opened​ ​the​ ​doorfor​ ​experimentation​ ​in​ ​decentralized​ ​organizational​ ​structures​ ​and​ ​the​ ​distribution​ ​ofgovernance​ ​rights​ ​to​ ​a​ ​network’s​ ​participants.​ ​Projects​ ​such​ ​as​ ​​Aragon​,​ ​​Boardroom​,Colony​,​ ​and​ ​​Giveth​​ ​are​ ​actively​ ​working​ ​to​ ​harness​ ​the​ ​powers​ ​of​ ​Ethereum​ ​for​ ​thesepurposes,​ ​building​ ​plats​ ​that​ ​enable​ ​non-technical​ ​users​ ​to​ ​create​ ​and​ ​administratedecentralized​ ​organizations.​ ​These​ ​tools​ ​allow​ ​for​ ​new​ ​means​ ​of​ ​group​ ​coordinationthrough​ ​economic​ ​incentives,​ ​making​ ​it​ ​possible​ ​to​ ​disintermediate​ ​marketplaces​ ​andcommunities​ ​and​ ​to​ ​allocate​ ​voting​ ​rights​ ​to​ ​their​ ​participants.​ ​In​ ​short,​ ​citizens​ ​of​ ​theinternet​ ​can​ ​now​ ​build​ ​and​ ​control​ ​the​ ​plats​ ​they​ ​frequent​ ​every​ ​day.Utilizing​ ​the​ ​aforementioned​ ​technologies,​ ​the​ ​district0 x​ ​Network​ ​will​ ​facilitate​ ​theoperation​ ​and​ ​governance​ ​of​ ​marketplaces​ ​and​ ​communities​ ​as​ ​decentralized​ ​entities.The​ ​district0 x​ ​Network​ ​will​ ​enable​ ​the​ ​recreation​ ​of​ ​many​ ​of​ ​the​ ​internet’s​ ​most​ ​popularapplications​ ​and​ ​services​ ​while​ ​eliminating​ ​rent-seeking​ ​and​ ​the​ ​relinquishment​ ​ofdecisions​ ​and​ ​personal​ ​data​ ​to​ ​third-parties.1​ ​https// ​https// ​district0 x​ ​Network​ ​is​ ​comprised​ ​of​ ​districts.​ ​Districts​ ​are​ ​markets​ ​and​ ​communitiesthat​ ​exist​ ​as​ ​decentralized​ ​entities​ ​built​ ​upon​ ​the​ ​d0 xINFRA​ ​framework.At​ ​the​ ​core​ ​of​ ​every​ ​district​ ​are​ ​components​ ​necessary​ ​to​ ​operate​ ​a​ ​marketplace​ ​orbulletin​ ​board​ ​application.​ ​All​ ​districts​ ​provide​ ​the​ ​following​ ​baseline​ ​functionalities● Posting​ ​and​ ​listings● Search​ ​and​ ​filtering● Ranking​ ​and​ ​reputation● Payments​ ​and​ ​invoicingThese​ ​capabilities​ ​are​ ​tied​ ​together​ ​and​ ​made​ ​accessible​ ​to​ ​users​ ​via​ ​list,​ ​thumbnail,​ ​andgallery-style​ ​user​ ​interfaces,​ ​popularized​ ​by​ ​online​ ​services​ ​such​ ​as​ ​Craigslist​ ​and​ ​Reddit.EthlanceLaunched​ ​on​ ​the​ ​Ethereum​ ​MainNet​ ​in​ ​January​ ​2017,​ ​​Ethlance​​ ​is​ ​a​ ​freelance​ ​job​ ​marketand​ ​the​ ​first​ ​district​ ​of​ ​the​ ​district0 x​ ​Network.6Ethlance​ ​allows​ ​users​ ​to​ ​create​ ​an​ ​employer/employee​ ​profile,​ ​list​ ​and​ ​apply​ ​for​ ​openpositions,​ ​rank​ ​and​ ​provide​ ​feedback​ ​for​ ​employers/employees,​ ​and​ ​to​ ​send/receiveinvoices.​ ​Ethlance​ ​does​ ​not​ ​charge​ ​any​ ​service​ ​fees,​ ​and​ ​users​ ​pay​ ​only​ ​the​ ​necessarycost​ ​of​ ​gas​ ​to​ ​broadcast​ ​their​ ​profiles,​ ​posts,​ ​messages,​ ​feedback,​ ​and​ ​invoices​ ​to​ ​theEthereum​ ​network.Ethlance’s​ ​code​ ​is​ ​completely​ ​open-source​ ​at​ ​​ x/ethlance​.​ ​Ethlance’sfront-end​ ​source​ ​files​ ​are​ ​written​ ​in​ ​Clojurescript​ ​and​ ​served​ ​via​ ​​IPFS​.​ ​Ethlance’s​ ​backendlogic​ ​is​ ​governed​ ​by​ ​14​ ​smart​ ​contracts​ ​deployed​ ​on​ ​the​ ​Ethereum​ ​MainNet​ ​Appendix​ ​A.Since​ ​its​ ​launch,​ ​over​ ​410​ ​users​ ​have​ ​created​ ​a​ ​profile​ ​and​ ​more​ ​than​ ​190​ ​open​ ​positionshave​ ​been​ ​listed.​ ​Projects​ ​such​ ​as​ ​​Status​,​ ​​Aragon​,​ ​​Colony​,​ ​​WeTrust​,​ ​​Rex​,​ ​​JAAK​,​ ​andGiveth​​ ​are​ ​amongst​ ​those​ ​currently​ ​hiring​ ​via​ ​Ethlance.As​ ​the​ ​original​ ​district,​ ​Ethlance​ ​serves​ ​as​ ​an​ ​experimental​ ​sandbox​ ​for​ ​the​ ​creation​ ​andrefinement​ ​of​ ​the​ ​d0 xINFRA​ ​framework​ ​and​ ​will​ ​be​ ​developed​ ​in​ ​perpetuity​ ​alongsideother​ ​districts​ ​deployed​ ​by​ ​the​ ​district0 x​ ​team.Name​ ​BazaarThe​ ​second​ ​district​ ​to​ ​be​ ​deployed​ ​to​ ​the​ ​district0 x​ ​Network​ ​will​ ​be​ ​​Name​ ​Bazaar​,​ ​apeer-to-peer​ ​marketplace​ ​for​ ​the​ ​exchange​ ​of​ ​names​ ​registered​ ​via​ ​the​ ​​Ethereum​ ​NameService​.​ ​Name​ ​Bazaar​ ​intends​ ​to​ ​provide​ ​an​ ​easily​ ​discoverable​ ​registry​ ​of​ ​ENS​ ​namesthat​ ​have​ ​been​ ​made​ ​available​ ​for​ ​purchase​ ​by​ ​their​ ​owners.Amongst​ ​available​ ​options,​ ​owners​ ​will​ ​be​ ​able​ ​to​ ​choose​ ​to​ ​open​ ​customized​ ​auctionsor​ ​list​ ​their​ ​names​ ​for​ ​sale​ ​at​ ​fixed​ ​prices.​ ​Sellers​ ​will​ ​have​ ​the​ ​option​ ​of​ ​setting​ ​theirprices​ ​in​ ​ETH​ ​or​ ​any​ ​ERC20​ ​token.Name​ ​Bazaar​ ​will​ ​also​ ​allow​ ​for​ ​the​ ​trading​ ​of​ ​subdomains,​ ​enabling​ ​the​ ​exchange​ ​ofusernames​ ​in​ ​decentralized​ ​applications​ ​such​ ​as​ ​​Status​​ ​and​ ​organization​ ​names​ ​in​ ​theAragon​ ​Network​ ​Company​ ​Registry​.Meme​ ​FactoryInspired​ ​by​ ​the​ ​work​ ​of​ ​Simon​ ​de​ ​la​ ​Rouviere​ ​and​ ​his​ ​​Curation​ ​Markets​​ ​design,​ ​the​ ​thirddistrict​ ​to​ ​be​ ​deployed​ ​to​ ​the​ ​district0 x​ ​Network​ ​is​ ​​Meme​ ​Factory​.​ ​Meme​ ​Factory​ ​willallow​ ​users​ ​to​ ​mint​ ​their​ ​own​ ​tokenized​ ​memes​ ​and​ ​offer​ ​them​ ​for​ ​sale​ ​immediately.7Meme​ ​Factory​ ​will​ ​provide​ ​an​ ​interface​ ​for​ ​the​ ​creation​ ​of​ ​provably​ ​rare​ ​digital​ ​assets​ ​onthe​ ​Ethereum​ ​blockchain​ ​which​ ​can​ ​be​ ​immediately​ ​posted​ ​to​ ​a​ ​bulletin​ ​board-stylemarketplace​ ​for​ ​exchange.Tokenizing​ ​and​ ​posting​ ​a​ ​meme​ ​to​ ​Meme​ ​Factory​ ​will​ ​resemble​ ​the​ ​process​ ​of​ ​creating​ ​anew​ ​post​ ​on​ ​Reddit.​ ​Minting​ ​a​ ​tokenized​ ​meme​ ​will​ ​resemble​ ​the​ ​process​ ​of​ ​upvoting.The​ ​number​ ​of​ ​tokens​ ​in​ ​existence​ ​for​ ​a​ ​particular​ ​meme​ ​at​ ​any​ ​given​ ​time​ ​will​ ​act​ ​as​ ​theranking​ ​mechanism,​ ​resembling​ ​the​ ​number​ ​of​ ​upvotes​ ​a​ ​post​ ​has​ ​received.​ ​Thesefunctions​ ​will​ ​be​ ​tied​ ​together​ ​with​ ​a​ ​Curation​ ​Market​ ​model,​ ​with​ ​the​ ​cost​ ​of​ ​minting​ ​andthe​ ​rates​ ​at​ ​which​ ​one​ ​can​ ​redeem​ ​their​ ​memes​ ​governed​ ​by​ ​a​ ​scaling​ ​pricing​ ​curve.Future​ ​DistrictsFollowing​ ​the​ ​launch​ ​of​ ​Meme​ ​Factory,​ ​the​ ​district0 x​ ​team​ ​intends​ ​to​ ​continue​ ​tointroduce​ ​new​ ​districts​ ​to​ ​the​ ​district0 x​ ​Network.​ ​The​ ​district0 x​ ​Network​ ​makes​ ​use​ ​of​ ​anopen​ ​proposal​ ​process,​ ​allowing​ ​all​ ​community​ ​members​ ​to​ ​​ ​ideas​ ​for​ ​new​ ​districtsvia​ ​the​ ​​district0 x​ ​GitHub​.The​ ​district0 x​ ​Network​ ​Token​ ​offers​ ​a​ ​means​ ​for​ ​network​ ​participants​ ​to​ ​signal​ ​whichdistricts​ ​they​ ​would​ ​like​ ​to​ ​see​ ​built​ ​and​ ​deployed​ ​to​ ​the​ ​network​ ​next,​ ​enabling​ ​holdersto​ ​coordinate​ ​around​ ​ideas​ ​which​ ​will​ ​add​ ​the​ ​most​ ​utility.​ ​Signaling​ ​is​ ​currently​ ​facilitatedvia​ ​the​ ​​District​ ​Proposal​ ​Voting​ ​dApp​,​ ​a​ ​customized​ ​implementation​ ​of​ ​​CarbonVote​.District​ ​Creation​ ​PlatThe​ ​district0 x​ ​Network​ ​will​ ​ultimately​ ​be​ ​comprised​ ​of​ ​global​ ​marketplaces​ ​andhyperlocal​ ​communities​ ​alike.​ ​The​ ​district​ ​creation​ ​plat​ ​will​ ​provide​ ​users​ ​with​ ​aneasy​ ​to​ ​use​ ​interface​ ​to​ ​design​ ​and​ ​deploy​ ​their​ ​own​ ​districts​ ​to​ ​the​ ​district0 x​ ​Network.The​ ​district​ ​creation​ ​plat​ ​will​ ​provide​ ​a​ ​way​ ​to​ ​customize​ ​the​ ​parameters​ ​of​ ​the​ ​smartcontracts​ ​powering​ ​a​ ​district​ ​and​ ​will​ ​offer​ ​numerous​ ​UI​ ​options​ ​to​ ​support​ ​a​ ​wide​ ​varietyof​ ​markets​ ​and​ ​communities.​ ​The​ ​district​ ​creation​ ​interface​ ​will​ ​feature​ ​an​ ​auxiliarymodule​ ​directory,​ ​similar​ ​to​ ​the​ ​​Apple​ ​App​ ​Store​,​ ​to​ ​allow​ ​for​ ​the​ ​easy​ ​discovery​ ​ofplugins​ ​that​ ​extend​ ​the​ ​functionality​ ​and​ ​utility​ ​of​ ​districts.8d0 xINFRAd0 xINFRA​ ​is​ ​an​ ​open​ ​source​ ​framework​ ​comprised​ ​of​ ​Ethereum​ ​smart​ ​contracts​ ​andfront-end​ ​libraries​ ​that​ ​govern​ ​the​ ​deployment​ ​of​ ​new​ ​districts​ ​to​ ​the​ ​network​ ​andprovide​ ​their​ ​baseline​ ​functionalities.Each​ ​district’s​ ​backend​ ​logic​ ​will​ ​be​ ​controlled​ ​by​ ​a​ ​combination​ ​of​ ​d0 xINFRA​ ​contractsshared​ ​by​ ​all​ ​districts​ ​on​ ​the​ ​network​ ​and​ ​a​ ​set​ ​of​ ​district-specific​ ​contracts.​ ​Similarly,​ ​forthe​ ​front-end,​ ​districts​ ​will​ ​share​ ​reusable​ ​components​ ​where​ ​possible,​ ​primarily‘under-the-hood’​ ​front-end​ ​logic,​ ​while​ ​still​ ​allowing​ ​for​ ​broad​ ​visual​ ​UI​ ​diversity.The​ ​district0 x​ ​Network​ ​seeks​ ​to​ ​be​ ​home​ ​to​ ​a​ ​vast​ ​array​ ​of​ ​markets​ ​and​ ​communities.​ ​Inaccordance​ ​with​ ​this​ ​vision,​ ​d0 xINFRA​ ​has​ ​been​ ​designed​ ​as​ ​an​ ​open​ ​and​ ​extendablemodular​ ​system​ ​that​ ​allows​ ​districts​ ​to​ ​implement​ ​unique​ ​features​ ​and​ ​enhancedfunctionality​ ​via​ ​the​ ​plug-in​ ​of​ ​auxiliary​ ​modules​ ​covered​ ​in​ ​the​ ​following​ ​section.9Auxiliary​ ​ModulesTo​ ​allow​ ​for​ ​the​ ​development​ ​and​ ​deployment​ ​of​ ​new​ ​features,​ ​functionality,​ ​andrevenue​ ​generating​ ​mechanisms​ ​to​ ​districts,​ ​districts​ ​can​ ​be​ ​customized​ ​and​ ​extendedthrough​ ​the​ ​use​ ​of​ ​auxiliary​ ​modules.An​ ​example​ ​of​ ​an​ ​auxiliary​ ​module​ ​that​ ​could​ ​potentially​ ​generate​ ​revenue​ ​for​ ​a​ ​district,is​ ​one​ ​which​ ​provides​ ​a​ ​mechanism​ ​for​ ​users​ ​to​ ​bid​ ​on​ ​premium​ ​placement​ ​of​ ​theirlistings,​ ​similar​ ​to​ ​Google​ ​AdWords.​ ​Winning​ ​bids​ ​would​ ​be​ ​sent​ ​to​ ​the​ ​district’sgovernance​ ​pool.​ ​The​ ​participants​ ​in​ ​a​ ​district​ ​ultimately​ ​determine​ ​how​ ​funds​ ​in​ ​theirgovernance​ ​pool​ ​are​ ​to​ ​be​ ​allocated​ ​via​ ​their​ ​voting​ ​processes.Another​ ​example​ ​of​ ​a​ ​potential​ ​revenue​ ​generating​ ​auxiliary​ ​module,​ ​is​ ​one​ ​which​ ​allowsfor​ ​the​ ​optional​ ​insurance​ ​of​ ​proposals​ ​on​ ​the​ ​plat.​ ​​ ​One​ ​could​ ​imagine​ ​a​ ​third-partyservice​ ​deploying​ ​a​ ​module​ ​to​ ​offer​ ​financial​ ​guarantees​ ​on​ ​arrangements​ ​betweenusers​ ​of​ ​the​ ​plat​ ​in​ ​exchange​ ​for​ ​a​ ​fee.An​ ​example​ ​of​ ​an​ ​auxiliary​ ​module​ ​that​ ​can​ ​enhance​ ​the​ ​user​ ​experience​ ​of​ ​a​ ​district​ ​is​ ​amoderation​ ​mechanism​ ​that​ ​allows​ ​for​ ​the​ ​flagging​ ​and​ ​takedown​ ​of​ ​spam,​ ​maliciouslinks,​ ​or​ ​explicit​ ​content.Districts​ ​will​ ​decide​ ​on​ ​a​ ​district​ ​by​ ​district​ ​basis​ ​what​ ​auxiliary​ ​modules​ ​are​ ​implementedvia​ ​their​ ​governance​ ​processes.Third​ ​parties​ ​are​ ​encouraged​ ​to​ ​develop​ ​and​ ​contribute​ ​auxiliary​ ​modules​ ​to​ ​district0 x.They​ ​are​ ​incentivized​ ​to​ ​do​ ​so​ ​via​ ​the​ ​ability​ ​to​ ​charge​ ​districts​ ​fees​ ​for​ ​usage​ ​rights.10Governance​ ​by​ ​AragonLaunched​ ​in​ ​2017,​ ​​Aragon​​ ​is​ ​an​ ​operating​ ​system​ ​for