Proposal Types

Proposals are categorized into distinct types to streamline the governance process within the XDC Network. These categories help organize proposals for voter consideration and establish specific voting requirements, such as quorum and threshold percentages, for different actions or tasks. Each proposal type is designed to address various aspects of ecosystem governance, project development, and operational adjustments. Below is a structured explanation of each proposal type within DAOFIN.

1. Grant Proposals

  • Purpose: To fund projects that add value to the XDC Network by enhancing its ecosystem, attracting new users, or facilitating transactions.

  • Description: A grant proposal requests financial support for initiatives that require resources like manpower, marketing, and other operational needs. It outlines the project's objectives, expected impact, and a detailed budget.

  • Example Scenario: Alice proposes a project to develop a new application on the XDC Network. She requests a specific amount of XDC tokens to cover development, marketing, and launch costs.

2. Decision-Making Proposals

  • Purpose: To make strategic decisions regarding the network's technical, business, or operational direction that align with the XDC Network's roadmap.

  • Description: These proposals do not involve funding but focus on making crucial decisions that affect the network's future. They require a clear outline of the proposed idea, its benefits, and its alignment with the network's goals.

  • Example Scenario: Alice suggests an update to the network's protocol to improve security. Her proposal details the technical changes, anticipated benefits, and alignment with the network's strategic objectives.

3. Updating Voting Periods

  • Purpose: To adjust the existing voting periods to better suit the DAO's operational needs or to reflect changes in the ecosystem.

  • Description: Proposals under this category seek to modify the timeline within which voting on proposals can occur, ensuring that the governance process remains flexible and responsive to the community's needs.

4. Update Voting Settings

  • Purpose: To modify governance parameters, such as quorum and pass rate, for each community within DAOFIN.

  • Description: This type of proposal aims to fine-tune the governance process by adjusting the criteria for proposal approval, making the system more efficient or reflective of the community's evolving requirements.

5. Judiciaries Replacement

  • Purpose: To update the wallet addresses of judiciaries within DAOFIN's governance structure.

  • Description: Proposals in this category address changes in the composition of the judiciary committee, ensuring that governance remains in the hands of trusted and active community members.

6. Changing Proposal Costs

  • Purpose: To adjust the cost associated with submitting proposals within the DAOFIN framework.

  • Description: This involves changing the financial requirement for proposal submission, potentially to encourage more participation or to maintain the quality of proposals submitted for consideration.

Execution of a Proposal by the DAO Treasury in DAOFIN

When a proposal within the DAOFIN framework meets all the required criteria—achieving the necessary quorum and pass rate in the voting process—it moves towards execution, particularly for proposals that involve financial transactions or allocations from the DAO Treasury. The execution phase is a critical step where approved proposals are actualized, involving the transfer of funds or resources as outlined in the proposal. This process is governed by predefined protocols to ensure transparency, security, and alignment with the community's decisions.

Steps for Proposal Execution by the DAO Treasury

1. Verification of Approval: The first step involves confirming that the proposal has indeed been approved according to the voting criteria—this includes meeting the necessary quorum and achieving the specified pass rate. This verification is typically automated within the DAOFIN smart contracts.

2. Preparation for Execution: Once a proposal is verified as approved, the DAOFIN prepares for execution.

3. Execution of Financial Transactions: For proposals requiring financial allocation, the DAO Treasury executes the transactions. This could involve:

  • Transferring Funds: Direct transfer of XDC or other tokens to parties or projects specified in the proposal.

  • Smart Contract Interaction: Engaging with smart contracts to allocate funds or fund development projects.

4. Automated and Secure Process: The execution process is typically automated through smart contracts to minimize human error and ensure security. These contracts are programmed to carry out the transactions exactly as specified in the approved proposal, adhering to the DAO's governance protocols(DAOFIN).

5. Transparency and Traceability: All transactions made by the DAO Treasury are recorded on the blockchain, providing a transparent and immutable record of the execution. This traceability ensures that community members can verify the execution of proposals and the appropriate allocation of funds.

6. Post-Execution Review and Reporting: After the execution, a review may be conducted to ensure that the funds have been allocated as intended. The results of this review, along with details of the executed transactions, are reported back to the community, maintaining transparency and accountability.

Importance of the DAO Treasury in Proposal Execution

The DAO Treasury is central to the execution of financial proposals within DAOFIN, acting as the custodian of the community's assets and the executor of its collective will. Its role ensures that the financial resources of the DAO are managed responsibly and aligned with the community's decisions, reinforcing the principles of decentralized governance.

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