# Example Project

An Example Token (EXT) that controls the releases for the example project repository. Currently, only Alice and Bob are token holders for this project, as they have been the maintainers since its origin. The current governance distribution, represented by the ownership of tokens:

Alice owns 200 EXT (66.67%)
Bob owns 100 EXT (33.33%)

Charlie and Dave have also recently made contributions to the repository, but do not own any tokens.

Example’s previous release was v1.0.0. Since then, 4 more commits have been added to the repository:

babbe37 "D to DD in file.txt" - Dave
d9bfa33 "C to CC in file.txt" - Charlie
b9e3a66 "B to BB in file.txt" - Bob
2ca0e4b "A to AA in file.txt" - Alice

And a new minor version is ready for release. After the tag v1.1.0 has been created, the EXT token holders decide on how they would like to assign value to these commits. We will refer to this mapping of values to hashes as a distribution, and it determines the addresses that newly minted tokens are transferred to:

Alice votes to reward:

30 EXT to hash babbe37
30 EXT to hash d9bfa33
30 EXT to hash b9e3a66
30 EXT to hash 2ca0e4b

Bob votes to reward:

10 EXT to hash babbe37
10 EXT to hash d9bfa33
10 EXT to hash b9e3a66
10 EXT to hash 2ca0e4b

The Example maintainers decided to use a simple weighted-average algorithm to come final distribution based on all the stakeholders preferences. So the values will be adjusted based on current token holder weight.

Since Alice owns 2x the number of tokens that Bob does, the final distribution gets weighted with 2x with her selection. The final distribution created with the proposal is:

20 EXT to hash babbe37
20 EXT to hash d9bfa33
20 EXT to hash b9e3a66
20 EXT to hash 2ca0e4b

All the existing token holders may come to a vote and approve this as an official release.

Alice owns 200 EXT, and votes FOR the release.
Bob owns 100 EXT, and votes AGAINST the release.

The release can now be verified, on-chain, at any given time. During the release execution, the values specified in the distribution were rewarded to the commit owners. The Example project governance is now:

Alice owns 220 EXT (57.89%)
Bob owns 120 EXT (31.58%)
Charlie owns 20 EXT (5.26%)
Dave owns 20 EXT (5.26%)

As more people make contributions to the project, the share of ownership will become more distributed over time. These owners may also choose to sell their tokens on the open market, giving them a source of income, and allowing dependents of Example to have a stake in the project.