LP-753: Governance & Ecosystem Architecture

Abstract

This LP defines the governance structure and accountability architecture for the Lux-Hanzo-Zoo ecosystem. It establishes how the four layers—finance (Lux), creation (Hanzo), mission (Zoo), and ownership (DAOs)—interact to create a system where transparency builds trust, trust attracts capital, and capital scales verified outcomes.

Principle: Accountability through architecture.

Motivation

Complex ecosystems often suffer from unclear accountability, conflicts of interest, and governance capture. When roles overlap or boundaries blur, it becomes impossible to hold any single entity accountable for failures. Traditional corporate structures concentrate power and extract value from communities.

This architecture establishes:

1. Clear role separation - Each layer has distinct responsibilities and accountabilities
2. Structural accountability - On-chain verification and third-party audits, not trust
3. Community ownership - DAOs steward IP and governance for long-tail value distribution
4. Mission alignment - Zoo anchors ethical boundaries across the ecosystem

Ecosystem Architecture

The Four Layers

┌─────────────────────────────────────────────────────────────────┐
│                         OWNERSHIP LAYER                         │
│    DAOs: Steward IP and governance for community benefit        │
├─────────────────────────────────────────────────────────────────┤
│                         MISSION LAYER                           │
│    Zoo: Life-first ethics, public benefit, non-extraction       │
├─────────────────────────────────────────────────────────────────┤
│                         CREATION LAYER                          │
│    Hanzo: Frontier tech with safety, efficiency, privacy        │
├─────────────────────────────────────────────────────────────────┤
│                         FINANCE LAYER                           │
│    Lux: Capital deployment, settlement rails, accountability    │
└─────────────────────────────────────────────────────────────────┘

Layer Responsibilities

Lux (Finance Layer)

Function	Description
Capital formation	Raise and structure investment vehicles
Capital deployment	Deploy funds to ESG-aligned projects
Settlement rails	Build payment and settlement infrastructure
Reporting infrastructure	Create transparent reporting systems
Accountability mechanisms	Hard-code compliance into funding terms

Governance role: Financial oversight, investment decisions, LP relations.

Hanzo (Creation Layer)

Function	Description
Tech incubation	Develop frontier technologies (AI, robotics, quantum)
Efficiency architecture	Build systems that reduce cost and risk
Safety engineering	Ensure technology is safe by design
Privacy-first design	Protect user data by default
Verification systems	Create tools to verify claims and outcomes

Governance role: Technical decisions, safety standards, R&D priorities.

Zoo (Mission Layer)

Function	Description
Ethical boundaries	Define what is and isn't acceptable
Public benefit anchor	Ensure programs benefit all life
Non-extraction enforcement	Prevent value extraction from communities
Life-first lens	Prioritize living systems in decisions
Mission integrity	Hold ecosystem accountable to values

Governance role: Ethics oversight, mission alignment, veto on harmful activities.

DAOs (Ownership Layer)

Function	Description
IP stewardship	Manage intellectual property for long-term benefit
Community governance	Enable contributor participation in decisions
Value routing	Direct long-tail value to contributors
Protocol evolution	Guide development of shared protocols
Stakeholder representation	Voice for users, workers, communities

Governance role: Community representation, IP decisions, value distribution.

Accountability Architecture

On-Chain Auditability

Element	Implementation
Transaction transparency	All fund flows on-chain
Milestone verification	Milestone completion recorded
Claims registry	All impact claims logged
Evidence hashing	Supporting evidence hashed to chain
Governance actions	All governance decisions recorded

Privacy-Preserving Controls

Control	Application
ZK proofs	Verify outcomes without revealing inputs
Selective disclosure	Reveal only what's needed
Aggregated reporting	Totals without individual data
Encrypted storage	Sensitive data protected
Access controls	Role-based data access

Multi-Layer Verification

Layer	Verification Method
Finance	Audit trail, fund accounting
Creation	Technical review, safety testing
Mission	Ethics review, impact assessment
Ownership	Community attestation votes

Governance Bodies

Lux Vision Fund Governance

Body	Role	Composition
Investment Committee	Investment decisions	Fund managers + advisors
LP Advisory Board	LP input on strategy	LP representatives
ESG Committee	ESG policy oversight	Cross-functional + external

Ecosystem Governance

Body	Role	Composition
Ecosystem Council	Cross-layer coordination	Lux + Hanzo + Zoo + DAOs
Ethics Board	Ethical boundary decisions	Zoo-led, multi-stakeholder
Technical Council	Technical standards	Hanzo-led, cross-ecosystem

DAO Governance

Structure	Purpose
Token voting	Major protocol decisions
Delegation	Expert representation
Working groups	Specific domain governance
Community proposals	Bottom-up initiative

Decision Rights

Investment Decisions

Decision	Authority	Consultation
Fund strategy	Investment Committee	LP Advisory Board
Individual investments	Investment Committee	ESG Committee
Exit decisions	Investment Committee	ESG Committee
ESG policy	ESG Committee	Ecosystem Council

Technology Decisions

Decision	Authority	Consultation
R&D priorities	Hanzo leadership	Technical Council
Safety standards	Technical Council	Ethics Board
Open source releases	Hanzo + relevant DAOs	Community
Privacy architecture	Technical Council	Ethics Board

Mission Decisions

Decision	Authority	Consultation
Ethical boundaries	Ethics Board	Ecosystem Council
Mission alignment	Zoo leadership	Ecosystem Council
Public benefit criteria	Zoo + DAOs	Community
Non-extraction rules	Ethics Board	DAOs

Ownership Decisions

Decision	Authority	Consultation
IP licensing	Relevant DAO	Legal, Ecosystem Council
Value distribution	DAO governance	Contributors
Protocol upgrades	DAO governance	Technical Council
Community policies	DAO governance	Ethics Board

Checks and Balances

Cross-Layer Oversight

Oversight	Mechanism
Finance → Mission	ESG Committee reviews all investments
Mission → Finance	Zoo veto on mission-violating investments
Creation → Mission	Ethics Board reviews tech decisions
Ownership → All	DAOs can propose policy changes

Escalation Process

Issue identified
    ↓
Working group resolution attempt
    ↓
Council-level review (if unresolved)
    ↓
Board-level decision (if escalated)
    ↓
Multi-stakeholder mediation (if contested)

Conflict Resolution

Conflict Type	Resolution Path
Investment dispute	ESG Committee → LP Advisory Board
Technical dispute	Technical Council → Ecosystem Council
Ethics dispute	Ethics Board → External mediation
DAO dispute	DAO governance → Arbitration

Transparency Requirements

Public Disclosures

Disclosure	Frequency	Location
Fund performance	Quarterly	LP reports
ESG metrics	Quarterly	Public dashboard
Governance actions	As they occur	On-chain
Annual impact report	Annual	Public website

Stakeholder Reporting

Stakeholder	Reporting
LPs	Detailed quarterly + annual
Portfolio companies	Regular check-ins + milestones
Communities	Impact updates + feedback
Public	Summary metrics + stories

Audit Requirements

Audit	Frequency	Scope
Financial audit	Annual	Fund accounting
ESG audit	Annual	Impact claims
Technical audit	As needed	Safety, security
Governance audit	Biennial	Process compliance

Evolution and Amendment

Policy Updates

Change Type	Process
Minor clarification	Staff-level, documented
Moderate change	Committee approval
Major change	Council approval + consultation
Fundamental change	Multi-stakeholder process

Continuous Improvement

Activity	Frequency
Process review	Annual
Stakeholder feedback	Ongoing
Benchmark comparison	Annual
External assessment	Biennial

Related LPs

• LP-750: Lux Vision Fund ESG Investment Framework
• LP-751: Environmental Integrity Investment Policy
• LP-752: Social Benefit Investment Policy
• LP-800: ESG Principles and Commitments
• LP-830: ESG Risk Management
• LP-910: Stakeholder Engagement

Changelog

Version	Date	Changes
1.0	2025-12-17	Initial draft