Governance Phase 1

Key Design Choices

Component or Feature
Phase 1 Design
BitDAO Treasury
Gnosis Safe
Governance
Gnosis Snapshot
Governance Token
BIT, instance of COMP token
Gnosis Safe Owner
Multi-sig
Gnosis Snapshot Space Owner
Multi-sig
Delegated Voting
Delegate All only
BIT holders must delegate before voting (can delegate to themselves)

BitDAO Treasury (Gnosis Safe)

BitDAO will use Gnosis Safe to store treasury assets. Gnosis Safe is commonly used by crypto projects for multi-sig control over an Ethereum address.
The main BitDAO treasury contract address is: https://etherscan.io/address/0x78605Df79524164911C144801f41e9811B7DB73D
Do not transfer assets into the BitDAO Treasury unless you intend on making a donation. Transferring assets into the BitDAO Treasury will not return any BIT tokens or any other tokens. Any assets transferred into the BitDAO Treasury address cannot be recovered unless there is a DAO proposal and vote to do so.

Governance Module (Gnosis Snapshot)

Gnosis Snapshot is an off-chain vote aggregation platform. Snapshot supports off-chain governance for many industry leading blockchain and DeFi projects such as Balancer, Yearn Finance, SushiSwap, Uniswap, Bancor, The Graph, and Aave. We chose Snapshot as an off-chain vote aggregation platform to make governance simple and transparent for our users. It is a tried and true solution with a great user interface and user experience.
Snapshot-based governance, is commonly referred to as "soft" governance as the result of the vote is not automatically implemented -- it requires a development and operations team to perform subsequent actions, and implementation of changes via a multi-sig.
Our Snapshot Space: https://snapshot.org/#/bitdao.eth

Governance Token (BIT)

BitDAO’s governance token, BIT, is an instance of Compound Finance’s governance token COMP. This has been selected instead of a standard ERC-20 token, as it supports 1) delegated voting, and 2) off-chain vote aggregation with the potential of moving to on-chain governance at a later phase.

Other Governance Discussions

In the community Discord and Forum, there will be a separate channel to discuss ideas around grants, token swaps, protocol roadmap, and governance.
Ideas that garner enough community support can be submitted for voting. A community member may draft a soft proposal for Snapshot that leads to an official community vote. Such proposals act as a “temperature test” or a poll, but do not guarantee implementation. The idea needs to be adopted by a development team, with finalized code audited and submitted, then deployed by the multi-sig administrators.

Delegated Voting

BIT holders cannot vote or create proposals until they delegate their voting rights to an address. Delegation can be given to one address at a time, including the holder’s own address.
See how to delegate here:
Note that delegation does not lock or transfer tokens. If an isolated delegatee wallet is stolen, compromised, or interacts with the incorrect smart contract, this will not directly result in the loss of BIT tokens, and the BIT holder can delegate to another address.

Multi-Sig Administrators

In Phase 1, BitDAO treasury (Gnosis Safe) and Snapshot Space are administered by a multi-sig wallet.
The initial setup is 3 of 5 signers whom have been nominated by the Bybit Team. Similar to other DeFi projects, we will look to community suggestions to distribute the signing keys more widely (for example 6 of 12 signers). Proposed changes to multi-sig signers or rules will be submitted via Snapshot proposal and voting process.

Proposal and Voting Parameters

Key Settings

Item
Phase 1 Parameter
Snapshot Strategy
1 BIT = 1 Vote Weight
Proposal Threshold
9,999,999 BITs (0.1% of token supply)
Vote Duration
7 days
Vote Threshold
100,000,000 BITs (1.0% of token supply)
Note:
    The above settings are managed by the BitDAO Snapshot Space administrators, who have been nominated by the bitdao.eth dns multi-sig owners.
    In Phase 1 Snapshot, the above parameters are policies and not enforced by code. The BitDAO affiliated R&D centers, and multi-sig administrators will not recognize any proposals that do not comply with the above settings.
    The above settings can be changed. We will discuss with the community on our forum, and submit a proposal vote prior to making any changes.

Definitions

Snapshot Strategy Defines the vote weight of each token. Our initial setting is 1 BIT = 1 vote weight, so each BIT has equal voting power. Future strategies may include: allocating vote weight to xBIT or BIT-ETH LP tokens to enable BIT holders who have staked, wrapped, or provided liquidity to retain voting power.
Proposal Threshold "Proposal Threshold" is typically defined as the number of votes required to create a proposal. In BitDAO Snapshot Space this is done through a visual filter, to only display proposals from users who have at least the threshold number of BIT tokens delegated to their address.
Vote Duration The length of time between voting start and voting end.
Vote Threshold The minimum number vote weight (BIT tokens) required to vote on a proposal. If this minimum is not met, the vote is unsuccessful even if the majority of voters voted yes.
Last modified 19d ago