The governance process

Learn exactly how our governance process works

01 Creating a draft proposal

Generating a draft proposal will lock a certain amount of xDGMV tokens, which means only xDGMV holders eligible for access to governance mechanics can create them using the governance dashboard.

To request funding from the DGMV IP vault, you need to have access to the governance system by locking at least 1,000 $DGMV tokens in the governance contract, or ask a xDGMV token holder to create a draft proposal for you.

02 Finalizing your proposal

During this step, all members of the DGMV community can review the draft proposal and provide feedback, which the creator can use to improve their proposal and increase its chances of approval.

xDGMV token holders can allocate their tokens to the proposal to express their approval for finalizing and moving it to the voting stage.

For that to happen, a minimum amount of the xDGMV tokens need to be allocated to the draft. The creator cannot allocate their own tokens to their proposal – neither directly or by delegation.

The tokens used to create and express support for the proposal will be locked against it as collateral and a measure of eligibility for rewards. This is designed to incentivise due diligence throughout the proposal creation process.

This stage has no time limit – achieving the support threshold does not automatically finalize the draft proposal. The proposal creator can take as much time as they need to implement improvements based on community feedback.

When the draft proposal has enough support from other xDGMV token holders and the creator is ready to finalize it, they will be able to choose the ‘finalize’ option on the governance dashboard.

Finalizing the draft proposal triggers a seven-day grace period, during which supporters can review the final version to make sure they still agree with it. If they change their mind, they can withdraw their support at this stage.

If the support falls below the threshold required to move the proposal to voting, the proposal automatically reverts back to draft, resetting the grace period for future submissions.

03 Voting

Voting period

Once the final proposal is submitted, all eligible xDGMV holders will have seven days to review it and cast their votes.

Voting options

All proposals will allow xDGMV token holders to choose ‘For’, ‘Against’, or ‘Abstain’.

Remember… Some proposals will provide more than one option in the ‘For’ section, such as when multiple candidates apply for a role on the committee, or there are various vesting terms to deploy the funds for the same initiative.

Voting type

We will use approval voting for proposals. When they contain several options, the one with the most votes will be the winner. This means of voting can be used to select both single and multiple winners.

Approval threshold

The approval threshold determines the voting power needed for the proposal to be passed. Initially, it will be set to 70% to make sure that all executed proposals have the support of an undisputed majority.

Quorum

Quorum refers to the minimum percentage of the total votable token supply needed to make the vote count. Initially, it will be set to 30%.

Votes ‘For’ and ‘Abstain’ count towards the quorum threshold, while votes ‘Against’ do not.

The voting process

xDGMV holders can use their voting power to vote on all active proposals. When voting ‘For’ the proposal, 5% of the xDGMV tokens used will be locked against it. This also applies to delegated tokens.

Rejected proposals

If the proposal is rejected by the community, or does not achieve the required quorum and/or approval thresholds, it will be recorded as rejected and removed from the active voting section of the governance dashboard.

The community will still be able to record their feedback against the rejected proposal for future reference, but all tokens allocated against it will be automatically released back to their owners.

The creator of the original proposal will be able to create a new proposal, referencing the rejected one as its basis and listing the changes made. This can accelerate the review and support generation process.

Approved proposals

If a proposal is approved by the majority and passes the vote, it will enter a seven-day time-lock to allow for a final committee review.

All xDGMV tokens used to create a draft proposal and express support for it, plus 5% of the xDGMV tokens used to vote ‘For’ it will remain locked and allocated against it.

04 Committee validation

Committees must complete their final review during the seven-day time-lock. Each committee can request an extension on this period if they identify concerns and require more time.

Final approval

If committees do not find any issues with the proposal and/or it has gained approval from the majority, final approval will be granted and the proposal implemented according to the specified plan.

Committee veto

Committees can veto a passed proposal by majority vote, as long as they have reasonable belief that the proposal threatens the ecosystem, or isn’t executable in line with legislative or technical constraints.

If a committee votes to veto a proposal, they must create a detailed report stating the reasons for its rejection and any suggesting ways to overcome them.

05 Implementation

Simple proposals using the provided templates will execute automatically via their embedded smart contracts, while custom proposals will be executed with the help of the executive committee.

06 Execution monitoring

Monitoring

The community and the executive committee will monitor the active projects and their execution according to the targets and success criteria defined within the proposal.

Risks and issues

If they decide that a project doesn’t meet these criteria or is at risk of failing to deliver on its promises, the executive committee can ask the proposal’s creator to provide a plan for addressing this.

Escalation

If a project isn’t achieving the defined targets and success criteria and the executive committee isn’t satisfied with the plan for addressing these issues, they can raise an emergency proposal to withdraw all remaining funding.

Emergency proposals do not need to go through a draft stage. Instead, the community will be able to vote on them straight away to speed up the decision-making process.

If xDGMV token holders approve the emergency proposal, all remaining vesting will be stopped to make sure no more tokens are released to the creator of the original proposal.

A small percentage of the xDGMV tokens locked against the original proposal will be moved to the IP vault and locked there for one year to convert them back into $DGMV.

Remember… The amount of tokens lost by the proposal’s creator and supporters will be calculated based on the percentage of funds used by proposal beneficiaries without achieving its final goal.