The Court Plugin serves as a solution for subjective disputes that cannot be resolved through smart contracts. It operates by utilizing jurors who must stake a token with the court in order to participate in adjudicating disputes and earning fees. The likelihood of being selected and earning higher fees is determined by the number of tokens activated by each juror.

To determine the subjective truth, the DAO Court employs a Schelling game where jurors vote on the ruling they believe their fellow jurors are more likely to support. Incentives are provided for consensus, as jurors who do not vote in favor of the consensus ruling will have some tokens deducted from their stake. On the other hand, jurors who align with the consensus ruling are rewarded with ruling fees and receive juror tokens from those who voted against the majority ruling.

The mechanism aims to minimize the number of jurors required to settle a dispute and deliver a ruling. Initially, only a small group of jurors are assigned to an ongoing dispute, and their decision can be appealed through multiple rounds of appeals.

While the DAO Court has the potential to resolve any binary dispute, its initial deployment focuses on arbitrating proposal agreements. These agreements involve organizations or entities agreeing to specific rules regarding proposal creation, with collateral at stake that may be forfeited if the Court deems the proposal invalid.

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