📖Glossary

This glossary defines and explains terms and concepts you may encounter in the documentation for better understanding.

Term	Definition
BAB Token, Soulbound token	A Soulbound token is a non-transferable digital token that represents your personal achievements, affiliations, and experiences. Unlike regular NFTs, SBTs cannot be sold or traded, serving as verifiable proof of your skills, education, or community memberships in the emerging "Decentralized Society". DeXe DAO Studio provides an option to require the Binance Account Bound (BAB) token in addition to DAO governance token. This helps prevent sybil attacks from users with multiple accounts.
Decentralized Autonomous Organization, DAO	A form of organization where decisions are made through proposals and voting based on rules encoded in smart contracts.
Delegate	The user who receives delegated tokens for governance purposes.
Delegated governance	Members can delegate governance tokens to any member of their DAO. It lets them transfer decision-making power to other DAO members or experts, allowing them to withdraw their tokens anytime. When delegating, tokens are locked in a smart contract, and only their owner can revoke them.
Delegator	The user delegating assets to another user for governance purposes.
DeXe DAO Studio	DeXe DAO Studio is a cutting-edge platform designed for the creation and management of Decentralized Autonomous Organizations (DAOs). It is a comprehensive solution for users to initiate and govern a DAO with ease. DeXe DAO Studio is built on top of the DeXe Protocol.
DeXe Protocol	The DeXe Protocol is an ecosystem of 50+ smart contracts for building and governing effective DAOs.
Early Vote Completion	A parameter that determines whether the main voting phase will end immediately after the quorum "for" or "against" is reached without waiting for the entire duration.
Execution Delay	The time interval setting a buffer between the end of voting and proposal execution. For example, a 1-day delay means the proposal can't be executed until one day after voting concludes. The delay allows members to exit the DAO if they disagree with the proposal's outcome.
Experts	Individuals or collective DAOs, recognized within the DAO community for their proficiency in specific fields. They play a crucial role by reviewing, analyzing, and offering insights on proposals pertinent to their expertise. Their function is to ensure decisions are well-informed, technically viable, and advantageous for the ecosystem.
Gas Fees	Gas fees in blockchain are commissions paid by users to compensate for the computing energy required to process and validate transactions on the network. The amount of gas fees can vary depending on the network's congestion and the complexity of the transaction.
Global experts	Can be individuals or collective entities, like Local Experts. Their key benefit is the capacity to receive token delegations from across the DAO network. In a Meritocratic Voting Model, their Voting Power can exceed standard users depending on several factors, including delegated votes and token holdings.
Governance Token	Represents voting power in DAO. Members must hold governance tokens to create proposals and vote.
Linear Voting Model	A governance model where each token grants one vote, providing simple and direct decision-making, is ideal for small organizations with uncomplicated tasks that do not require complex governance logic. However, this model does little to combat the consolidation of power, as any number of tokens can be concentrated in a single wallet without diminishing voting strength.
Live Active Users, LAU	Metric that indicates the level of participation and engagement within the DAO. Calculated in % as a ratio of active DAO members participating in governance to all governance token holders. LAU = (Number of Active members/Total Number of members​)×100
Local Experts	Individuals or DAOs acknowledged by a specific DAO for their expertise and reliability. They are distinguished by their ability to be delegated tokens, a feature not available to regular DAO members. In the Meritocratic Voting Model, their votes may have more influence than ordinary members.
Meta-governance	The hierarchical structure where one DAO's vote influences decisions in another DAO.
NFT Rewards Multipliers	DeXe DAO Studio allows the adjustment of the additional multiplier for voting rewards within the NFT for DAO members.
NFT voting power	The quantity of votes given by certain NFT.
Nonlinear Meritocratic Voting Model	A governance model designed by DeXe specifies voting power based not just on token balance but also on various parameters to enhance governance efficiency and establish a more flexible voting logic. Nonlinear functions in this system prevent plutocracy — the concentration of power in the hands of a few — by slowing down the increase in voting power as a token balance grows.
Off-chain voting	The voting mechanism in which the results don't trigger any actions in the blockchain but are recorded in the backend. These proposals are essential for validating ideas or bringing up topics for discussion.
On-chain voting	A voting mechanism in which the results are recorded in the blockchain and trigger the execution of a transaction performing the function specified by the type of proposal. This could involve various actions such as assigning roles within the DAO, transferring funds from the treasury, token distribution, executing custom contracts, etc.
Proposal	A formal suggestion or idea presented by a member for consideration and potential approval by the community through voting. In DeXe DAO Studio is created using convenient templates.
Proposal Creation Rewards	A fixed number of tokens will be given to the accepted proposal author as compensation for gas fees, incentivizing members to contribute ideas and take the initiative.
Proposal Execution	Triggering on-chain actions after a proposal is approved. Once the voting phase is finished and the proposal meets the conditions for approval, it can be executed via the relevant executor contract on-chain. To initiate execution, one of the DAO members should find an accepted proposal and execute it. This requires a transaction, though the DAO can set a small reward for executing proposals to cover transaction fees.
Quorum	The minimum amount of voting power; "Yes" – in favour; or "No" – opposed, to accept or decline a proposal respectively.
Rewards System	A flexible rewards system designed by DeXe DAO Studio to incentivize DAO members through bonuses for their significant contributions to the organization's activities. This approach encourages high-quality contributions and compensates members for the time and gas fees they incur.
Transaction Execution Rewards	A fixed number of tokens will be given as rewards to users who execute accepted proposals, offsetting gas fees.
Total Value Governed, TVG	Metric indicating in USD equivalent how many governance tokens (GT) are currently controlled by this DAO. Calculated as a sum of all governance tokens (GT) in the treasury, governance tokens (GT) delegated to this DAO and all governance tokens locked in other Dao's votings on behalf of this DAO. TVG = GT in treasury+GT received as delegations+GT locked in other DAOs votings
Total Value Locked, TVL	Metric indicating in USD equivalent how many tokens are locked in this DAO. Calculated as a sum of all assets in treasury, all governance tokens (GT) delegated by DAO, and all governance tokens locked in DAO member votings. TVL = Assets in treasury+GT delegated by DAO+GT locked in voting.
Treasury	A pool of funds managed collectively by a Decentralized Autonomous Organization (DAO). Any actions with the Treasure funds are only available through on-chain transactions executed after the DAO members vote and accept the proposal. The Treasury is used to fund projects, operations, and investments decided upon through the DAO’s governance processes, where members vote on how funds should be allocated and used.
Validator Token	Holding this token confirms the Validator's status in the DAO and allows them to participate in Validator voting.
Validator voting	Validators voting is an extra layer of security oversighting your DAO's governance through a secondary vote, which takes place after the member's voting phase. Validators use a separate Validator Token.
Validators	Validators are trusted members who vote on proposals after the main community vote. They act like a board of directors, providing an additional safeguard against malicious proposals. If validator's voting is enabled in DAO, their approval is required for proposals to be executed. Validators also have special powers, such as proposing urgent changes without a full vote when needed to maintain the DAO.
Validators-Only Proposals	Validators can conduct their own types of proposals without involving the entire DAO. These proposals are essential for managing the DAO's sustainability processes, which do not require full DAO participation to avoid slowing down operations.
Vote Delegation	Allows DAO members to assign voting power to trusted experts or advisors in the community, facilitating better decision-making by leveraging their expertise. This also saves time and gas fees, while members retain the ability to withdraw delegated votes anytime.
Voting Duration	The period during which the voting phase occurs.
Voting Efficiency Index, VEI	In a Meritocratic Non-linear voting system, as the number of tokens on the balance increases, the function of calculating the voting power deliberately slows down its growth. VEI allows one to see how beneficial it is to delegate to a particular expert. VEI=VotingPower/TokenNumber
Voting minimums	Minimum number of votes members must hold to: Create proposals Participate in votings View and comment on proposals Setting minimums helps prevent spam and ensure meaningful engagement.
Voting power	A parameter that determines the weight of members' voting in DAO. In the Linear Voting Model, each token provides one vote, and the total Voting Power equals the number of tokens a member holds. In the Non-linear Meritocratic Voting Model, voting power is based not just on token balance but also on various parameters. For example, non-linear functions slow down the increase in voting power as a token balance grows.
Voting Rewards	Is given to those who vote for proposals the DAO has accepted. In this case, individuals who vote "For" will receive rewards proportionate to their voting power. The distribution of voting rewards is based on the percentage of tokens involved in voting and is allocated to members according to their voting power.
Voting rules	DAO Voting Rules are predefined settings for different types of proposals fixed in protocol smart contracts. Can be modified by proposals and voting.