Confidential Information Memorandum
Subject: Governance Structure of the Pegged System
Author: Alias
Audience: Selected team members and future DAO participants

1. Executive Summary

The Pegged System is a decentralized financial mechanism composed of a synthetic stablecoin ($PEG), a globally accessible lottery framework, and a non-meritocratic governance layer (PegDAO). This memorandum outlines the principles, architecture, and boundaries of the system’s governance design, rooted in irrevocability, probability, and participation.

2. Governance Objectives

• Ensure full autonomy post-launch.

• Minimize trust dependencies—code is law.

• Resist capture by institutions, elites, or insiders.

• Enshrine fairness through randomness, not deliberation.

• Exclude merit, reputation, and managerial control from all governance mechanisms.

3. Structure of Governance

PegDAO is the sole governance structure of the Pegged system. It is controlled via the $PDAO token, distributed algorithmically based on participation in the system, particularly through lottery engagement. All decisions are executed via smart contracts. There are no administrator privileges, override keys, or upgrade paths. The system is immutable.

Governance actions are restricted to pre-defined bounded parameters (e.g., portfolio weighting, oracle selection). No core logic of the Pegged system can be changed once deployed.

4. Governance Philosophy

• Launch-and-forget: The system detaches from its creators at the moment of deployment. No future interventions are possible.

• Irrevocability over adaptability: Finality is prioritized. Governance exists to balance, not to correct.

• Lotteries over leadership: Random selection and decentralized participation replace planning, management, or voting hierarchies.

• Participation over merit: All governance influence derives from active usage. Credentials, performance, or intentions are irrelevant.

5. Mechanisms and Tools

Oracles
Pegged relies on decentralized oracles to provide on-chain inputs such as $PEG demand, supply signals, and external reference data. These oracles are curated but not centrally controlled.

Lottery Governance Signals
Engagement in HOPE, AMBITION, and GREED lotteries provides both transactional volume and probabilistic feedback into the system. These inputs indirectly influence governance recalibrations, such as the weight of DAO stakeholder groups, but not via voting or identity.

Token Dynamics

• $PEG (Pure Stablecoin)
  Circulating supply is fully endogenous. $PEG issuance and destruction are determined by the internal dynamics of lottery participation and payout ratios.
  No external peg. No discretionary minting. No collateral reserve. The currency self-regulates via usage.

• $PEGUSD, $PEGEUR, $PEGYUAN, $PEGSDR
  These externally-referenced $PEG variants are introduced to support specific lotteries and user entry points.
  They are transitional. The long-term goal is to phase them out entirely in favor of $PEG.

• $PDAO (Governance Token)
  Not capped. Supply grows as a passive byproduct of lottery usage.
  It compensates for system friction—not value creation or liquidity provisioning.
  Governance rights are purely transactional. There are no incentives for governance behavior or performance.
  This ensures non-meritocratic participation and maintains resistance to capture or technocratic drift.

6. Founding Team Role

The founding team disbands permanently at launch. Alias and collaborators vanish without trace or control pathways. The system functions entirely independently. The novel (Pegged) exists as the memetic and ideological vessel for the system’s proliferation. No founder remains accessible. No path exists for re-contact.

7. Limitations and Disclaimers

• Pegged is irrevocable. No upgrade or correction mechanism exists.

• Governance is minimal, automated, and blind to competence or context.

• Stability is probabilistic. Fairness is procedural. Risk is structural.

• Participants must accept that Pegged is not designed for safety—it is designed for autonomy.