DerivaDAO Governance
Introduction to the DerivaDAO
The DerivaDEX protocol is governed by the DerivaDAO. DAO is shorthand for “decentralized autonomous organization”, a concept often used in decentralized applications to refer to smart-contract based governance, where token holders are able to make proposals regarding changes to a protocol, and vote on them.
Governance structure
The DAO and voting power
All DDX token holders participate in governance, with voting power proportional to their token holdings.
Governance decisions include:
Approving protocol updates
Managing DAO-owned funds
Appointing Bond Providers and Foundation directors
Types of proposals
On-chain Proposals: Direct changes to protocol code or smart contracts.
Hybrid Proposals: Combine on-chain changes with off-chain activities.
Off-chain Proposals: Non-binding, ratified by the DAO.
Proposal process
Draft Creation: Shared on the Governance Forum.
Security Council Review: Assesses potential risks.
DIP Submission: Created and submitted on the DIPs Repository.
Voting: Open for 3 days; 4% quorum needed.
Execution: If approved, the proposal is implemented on-chain.
Last updated