Construct Governance

Making a DAO Proposal

The governance flow of Stakeborg DAO consists of the following steps:

  1. Put together a proposal. Gather feedback on your idea in Discord.

  2. Submit your proposal to formal discussion on the Forum. Make sure that you considered all the implications and addressed all the feedback.

  3. Once you iron out the kinks, your proposal is ready for a Snapshot vote. This is the first formal voting step your proposal will encounter. It is off-chain, which makes it free, so you should aim for as much participation as possible.

  4. Having passed the Snapshot vote, your proposal is now ready for On-Chain Voting.

Agora Proposal Structure

A. Summary – a short description regarding the proposal, just a few sentences long B. Motivation – explains what the problem/opportunity the proposal identifies and how it adds value to our DAO C. Execution – what are the steps (detailed) needed to achieve the proposal’s goal (by who, how long it will take) D. Resources – what you need in terms of financing, Social Media support, etc E. Success metrics and KPIs – how is success measured? What are the KPIs? F. Team background – who’s part of the team and what their background is

Snapshot Voting

To be proposed and passed, a Snapshot vote must meet the following:

  • To create a proposal your voting power must be greater than or equal to 1 vote.

  • Quorum on a proposal is defined as 1000 votes.

  • When you create a proposal -- you define a start date & an end date, define choices, select if the vote is single choice or multiple choice etc.

  • The default threshold for proposal passing is 50%.

On-Chain Voting

On-chain voting is done using voting power. You can earn voting power by staking your STANDARD tokens under the Governance section. You can get a voting power boost by locking your STANDARD for up to 1 year.

Each on-chain proposal can contain up to 10 actions (Ethereum transactions) to be executed. To save on gas fees, multiple DAO proposals can be grouped into one on-chain proposal.

To be proposed and passed, a DAO vote must meet the following thresholds:

  • Proposer’s voting power must be >= 1% of Total STANDARD Staked: To submit a proposal for vote, the address doing so must have a voting power greater than 1% of the total STANDARD staked in the DAO at the time of proposal creation. For example, if there are 1000 STANDARD staked, a user will need either 10 unlocked STANDARD staked, or 5 STANDARD locked for a year.

  • Minimum number of votes must be greater than 35% of Staked STANDARD: For a vote to be considered legitimate, the number of votes on the proposal must be >= 35% of the total STANDARD staked. For example, if there are 1000 STANDARD staked, the participation of 350 votes would be enough to achieve quorum.

  • Minimum 65% of Participating Votes Must Approve: A DAO vote is considered approved if the quorum is reached and 65% of the votes are in favor once the vote concludes.

The process consists of 4 main stages:

  1. Warm-up (3 days)

    • This buffer period allows for anybody who so desires to stake STANDARD before voting.

    • During this period, the creator may cancel the proposal.

    • If the voting power of the proposing address drops below the 1% threshold, anybody may cancel the proposal.

  2. Voting (7 days)

    • During this period, the creator may cancel the proposal

    • If the voting power amount of the proposing address drops below the 1% threshold, anybody may cancel the proposal.

  3. Queued for execution (3 days)

    • The proposal vote passed, but the proposal cannot be yet executed.

    • During this period, an abrogation proposal can also be submitted, allowing for a last-minute chance to cancel a proposal. There is no quorum requirement but in order for the abrogation proposal to pass, the number of votes in favor must be greater than 50% of staked STANDARD.

  4. Grace (3 days)

    • During this period, anybody can execute the proposal.

    • If the proposal is not executed by the end of the Grace period, it is marked as expired and cannot be executed anymore.

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