⚙️Operating and Governing Your DAO

Now that your DAO is successfully created, all further actions and changes will occur through proposals and community voting.

In this section, we'll comprehensively cover the tools and processes for operating your DAO. This includes submitting proposals, conducting votes, executing approved actions, and incentivizing participation.

Our goal is to provide clarity around the full lifecycle of proposals and decision-making mechanisms within the DeXe DAO Studio platform. We'll walk through each step, from proposal submission to rewarding contributors.

With a firm understanding of governance operations, your DAO can smoothly adapt and evolve over time through transparent democratic processes. Let's dive into effectively managing your decentralized organization.

Proposal Lifecycle

Let's examine the lifecycle of a proposal and how it is created, voted on, and executed. This is the fundamental functionality of DeXe DAO Studio, which governs any DAO created using the DeXe Protocol.

This circuit was designed to maintain the integrity of the DAO, provide transparency, and ensure that the community's voice is heard and considered in every decision.

Initiation

In DeXe DAO Studio, any DAO member holding enough governance tokens can initiate a proposal. This stage introduces new ideas, changes, or improvements to the community.

Discussion

DeXe DAO Studio provides a mechanism for discussion through comments in a proposal. Once a proposal has been created, commenting becomes available to other DAO members.

An off-chain proposal mechanism is designed to discuss options and verify the DAO members' support before creating an on-chain proposal without spending gas commissions.

Voting

Voting Mechanism: Members cast their votes in favor or against the proposal. The DeXe Protocol employs a transparent and secure voting mechanism to ensure that every vote is authenticated and counted.

Quorum: Depending on the proposal's nature, different voting quorums might be set. For instance, fundamental changes require a supermajority, while minor adjustments need a simple majority.

Implementation

Execution: If the on-chain proposal secures the necessary votes, it moves to the implementation phase. Here, the proposed changes are executed within the protocol.

Transparency: Every implementation step is documented and shared with the community. This ensures that the changes align with the proposal's intent and that the community is kept informed.

Terms and concepts

Let's review the basic concepts, a thorough understanding of which is essential for every DAO Contributor.

Voting Duration

The duration of the voting period is crucial. It must be long enough to allow all members to participate but short enough to ensure timely decision-making. The standard voting length is determined by the type of proposal, with critical changes often requiring longer voting periods for thorough consideration.

Quorums

A quorum is the minimum number of votes required for a proposal to be considered valid. In the DeXe DAO Studio you can set different quorum thresholds based on the proposal's nature and impact. For instance, fundamental changes to the DAO rules can require a higher quorum than regular proposals.

Validator Voting

Validators add an extra layer of security and oversight to your DAO's governance through a secondary vote. 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. Their approval is required for proposals to be executed.

Validator votes use a separate validator token, created in the next steps. This token cannot be transferred, keeping the validators fixed; validator status can be revoked only by unanimous decision of all other validators. Validators also have special powers like proposing urgent changes without a full vote when needed to maintain the DAO.