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Frequently Asked Questions

Answers to common questions about LaborCoin, the DAO, governance, Passport verification, and the exchange.

General

What is LaborCoin?

LaborCoin is a blockchain-based system designed to help workers build shared resources through voluntary participation, collective funding, and democratic governance.

Why was LaborCoin created?

LaborCoin was created to explore new ways for workers and supporters to coordinate resources, build collective funds, and provide assistance to people engaged in strikes, labor actions, mutual aid efforts, and other community-supported initiatives.

What is LABR?

LABR is the primary transferable token within the LaborCoin ecosystem.

LABR can be purchased through the LaborCoin Exchange and may be held, transferred, bought, or sold according to the rules of the system.

What is LABRV?

LABRV is the LaborCoin governance token.

LABRV is non-transferable, cannot be purchased, and is granted through DAO registration.

LABRV is used exclusively for governance participation.

Gitcoin Passport

What is Gitcoin Passport?

Gitcoin Passport is a digital identity verification system that helps establish that a participant represents a unique human user.

Why is Passport verification required?

Passport verification helps protect the system from duplicate registrations, Sybil attacks, automated manipulation, and artificial voting power accumulation.

Why does LaborCoin use Gitcoin Passport instead of traditional KYC?

LaborCoin uses Gitcoin Passport as an anti-Sybil system rather than a traditional customer account system.

The goal is to help establish that participants represent unique human users without requiring LaborCoin to collect, store, or manage sensitive personal information.

Passport verification helps reduce duplicate accounts and governance manipulation while allowing users to maintain control of their own wallets and verification methods.

LaborCoin does not create user accounts, maintain customer profiles, or operate as a centralized financial institution.

How do I increase my Passport score?

Common ways to improve a Passport score include:

Exchange

Do I need DAO membership to buy LABR?

No.

DAO registration is not required to purchase, hold, or sell LABR.

DAO registration is only required for governance participation.

What are the wallet limits?

The exchange currently enforces a maximum wallet limit of 10,000 LABR.

What are the transaction limits?

Individual buy and sell transactions are currently limited to 5,000 LABR.

What is the transaction cooldown?

The exchange currently enforces a 12-hour cooldown between transactions.

How is LABR priced?

LABR is sold through a deterministic bonding curve.

As more LABR enters circulation through the exchange, the price increases according to predefined smart contract rules.

How does the treasury receive funding?

Ten percent of every LABR purchase is directed to the DAO treasury.

LABR sales currently include a ten percent tax. Five percent supports the DAO treasury and five percent is distributed among eligible LABR holders.

DAO Registration

Why should I register with the DAO?

Registration is optional.

Users who wish to participate in governance must register in order to receive LABRV voting rights.

What does DAO registration do?

Registration grants LABRV governance rights and enables proposal creation and voting.

Do I need LABR to register?

Yes.

Users must hold at least 1 LABR to register with the DAO.

Is LABRV transferable?

No.

LABRV cannot be traded, sold, or transferred.

Governance

How are proposals created?

Verified LABRV holders may submit treasury proposals through the governance portal.

What can proposals do?

Governance proposals may direct treasury transfers approved through the voting process.

What voting thresholds exist?

Proposals require participation from at least 25% of registered voting power and approval from at least 67% of participating votes to pass.

These requirements are enforced automatically by the governance contracts.

What is the execution window?

Once a proposal passes, it enters a 7-day execution window.

During this period any user may execute the approved proposal through the governance interface.

What happens if a proposal expires?

If an approved proposal is not executed within the 7-day execution window, it expires and can no longer be executed.

Why is there a treasury proposal limit?

Individual treasury proposals are currently limited to 5% of treasury assets.

This helps reduce risk and prevents any single proposal from immediately exhausting treasury resources.

Security

Why use one verified identity?

One verified identity helps maintain fair governance participation and reduces the risk of duplicate voting.

How does replay protection work?

The governance system uses cryptographic signatures, expiration windows, and unique nonces.

These protections help prevent previously authorized actions from being reused maliciously.

Are the contracts public?

Yes.

LaborCoin smart contracts are deployed publicly on Polygon and all on-chain activity can be independently verified.

Legal and Risk Information

Is LaborCoin an investment?

LaborCoin is intended as a utility and governance ecosystem.

Participation should not be viewed as a guarantee of profit, appreciation, income, or financial return.

Can returns be guaranteed?

No.

No returns, appreciation, distributions, or financial outcomes are guaranteed.

Are blockchain systems risk free?

No.

Blockchain systems involve risks including wallet compromise, user error, smart contract vulnerabilities, regulatory changes, market volatility, and network disruptions.

Who is responsible for wallet security?

Users are solely responsible for securing their wallets, devices, recovery phrases, and private keys.

Can regulations change?

Yes.

Digital asset regulations continue to evolve worldwide and users are responsible for complying with the laws applicable in their jurisdiction.

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