Governance
Last updated
Last updated
We are delighted to announce the formal introduction of governance mechanisms into BytomDAO's operations, enabling our community members to engage directly in decision-making processes through voting.
Here are some things you need to know.
Governance refers to controlling the transfer of assets within a DAO organization or changing the rules of organizational operation by initiating proposals. Any changes require community voting permission to proceed, and no individual or organization has absolute leadership.
Common DAO governance methods are divided into on-chain governance and off-chain governance. Off-chain governance typically uses tools like Snapshot for voting, and then the DAO's managers act based on the voting results. This governance method is more like a process of collecting opinions, where the final actions still need to be managed by specific people, resulting in a higher degree of centralization.
Meanwhile, BytomDAO is currently implementing on-chain governance based on Tally. It use smart contracts to propose, vote on and execute proposals. That makes DAO operations automated, trustless, and more decentralized.
A complete governance lifecycle includes the stages of Create a Proposal, Voting on Proposals, Queuing and Executing Proposals. If a proposal does not pass, there will not be a final execution step.
All BTM holders can participate in the governance of the DAO, with each BTM held being exchangeable for one voting right. This means the more BTM you own, the higher your voting power and the greater your say.
The Treasury contains assets owned by the BytomDAO organization that can be utilized.
The primary asset in the Treasury is currently BTM, with an initial amount of 420,000,000, later receiving donations of 17,609,027.843, bringing the current total to 437,609,027.843. After BTM is burned, the initial total circulating supply is 1,640,515,591.91, and there will be no further issuance, making BTM a deflationary token.
Furthermore, after BytomDAO earns other assets, it will vote to decide on repurchasing BTM, further reducing its circulation in the market.
Creating a Proposal is the process of initiating a proposal to gain approval from organization members and to transfer assets completely.
BytomDAO uses the Tally platform to manage the complete lifecycle of Proposals, with all actions executed on-chain, ensuring full decentralization. Once a Proposal is passed, it will be automatically executed and not controlled by any party.
The status of a Proposal includes six stages: Draft created, Published onchain, Voting period started, Voting period ended, Proposal queued, Execute Proposal. A complete and successful execution of a Proposal requires meeting certain conditions, with key parameters as follows:
Proposal threshold
2 million
Quorum needed
10 million
Proposal delay
5 days
Voting period
7 days
This is a detailed interpretation of the above parameters.
Proposal Threshold: This is the minimum number of governance tokens that a proposer must hold to initiate a proposal. You can only submit a proposal if you hold more governance tokens than this threshold.
Quorum Needed: A proposal can only pass if it receives support from a number of votes that exceeds this threshold.
Proposal Delay: This term represents the waiting time from when a proposal is made until voting begins.
Voting Period: This indicates the duration available for voting on each proposal. Once this period expires, no further votes can be cast.
