Governance Phase 1
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.
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.
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.
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.
In Phase 1, BitDAO treasury (Gnosis Safe) and Snapshot Space are administered by a multi-sig wallet.
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.
- 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.
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.