GOVERNANCE: Management and Voting in DAOs (Unsure)
Covers how governance works within DAOs, including voting, decision-making, and member involvement.
Governance
Governance is an important part of the smooth running of a DAO. In the platform members can put forth two kinds of proposals for the members to vote.
Governance proposals at the protocol level determine the democratic and operational rules of how the DAO runs. For these types of decisions, each NFT holder has one weighted vote. It is a 1:1 value, no matter what tier level they are on. Everyone is on equal footing for protocol level decisions and can submit proposals. This ensures that fundamental changes to the community are a balanced mechanism but execution decisions.
Second, there are financial proposals. These relate to the management of the DAO wallet, determining what projects to fund, and any other decisions that affect how funds are spent, saved and used. In this case, members have votitng weights based on the tier level that they purchased. This gives members who put in a larger amount of money at the beginning of the project a stronger weight as to how funds are spent as they put in a greater amount
In order for votes to pass, when creating a DAO, they will set the minimum percentage of members required and minimum percentage votes required. These can be individually set for each type of proposal. The software will suggest governance decisions set high at 70% to ensure protocol level decisions are sufficiently difficult to implement. For financial or project related decisions, we suggest 51%. These can be adjusted by the DAO at any time by vote.
Creating and Using a Board of Trustees
Electing and having a board of trustees is a helpful way for DAO members to evaluate proposals by being able to see how a trustee member is voting. It can serve as a recommendation for others who may or may not understand the implications of what is being voted upon.
Trustees can be voted in based on a particular skills or experience that is requested. They can serve for a variable amount of time, with a minimum of 3 months. The number of trustees is selected by the proposal that is put forward. They will be randomly selected from within the DAO and will have a set time to review the proposal to deny or accept serving as such.
Governance is an important part of the smooth running of a DAO. In the platform members can put forth two kinds of proposals for the members to vote.
Governance proposals at the protocol level determine the democratic and operational rules of how the DAO runs. For these types of decisions, each NFT holder has one weighted vote. It is a 1:1 value, no matter what tier level they are on. Everyone is on equal footing for protocol level decisions and can submit proposals. This ensures that fundamental changes to the community are a balanced mechanism but execution decisions.
Second, there are financial proposals. These relate to the management of the DAO wallet, determining what projects to fund, and any other decisions that affect how funds are spent, saved and used. In this case, members have voting weights based on the tier level that they purchased. This gives members who put in a larger amount of money at the beginning of the project a stronger weight as to how funds are spent as they put in a greater amount.
In order for votes to pass, when creating a DAO, they will set the minimum percentage of members required and minimum percentage votes required. These can be individually set for each type of proposal. The software will suggest governance decisions set high at 70% to ensure protocol level decisions are sufficiently difficult to implement. For financial or project related decisions, we suggest 51%. These can be adjusted by the DAO at any time by vote.
1WP Structured DAOs weighted votes per NFT by tier for financial decisions:
Tier 1: 67
Tier 2: 33
Tier 3: 16
Tier 4: 8
Tier 5: 4
Tier 6: 2
Tier 7: 1
Creating and Using a Board of Trustees
Electing and having a board of trustees is a helpful way for DAO members to evaluate proposals by being able to see how a trustee member is voting. It can serve as a recommendation for others who may or may not understand the implications of what is being voted upon.
Trustees can be voted in based on a particular skills or experience that is requested. They can serve for a variable amount of time, with a minimum of 3 months. The number of trustees is selected by the proposal that is put forward. They will be randomly selected from within the DAO and will have a set time to review the proposal to deny or accept serving as such.
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