📝DAO Framework
DAO Design
Multichainz governance is an on-chain governance system that enables protocol improvements and upgrades through time lock executors, both short and long time-lock executors. Hence, it allows for easy protocol evolution in an ever-changing blockchain ecosystem.
Voting Power
Holders of the Multichainz governance token and a select vested tokens on the platform get governance power with proportionality to their balances. These powers enable holders to either propose on an improvement and also vote on proposals. Users can delegate their governance powers to other users on the platform.
Governance Proposals
The cycle of a Request for Improvement
1. Create a proposal and share it with the community forum.
2. Gauge the community sentiment through a snapshot of the off-chain sentiments.
3. Prepare the Proposal payload if the community sentiment was positive to the proposal submitted.
4. Submit the payload to the DAO for on-chain voting by governance token holders.
Governance On-chain Payloads (Improvement Proposal)
These are the protocol improvement proposals that have gone through a request improvement proposal. They are submitted by any community member with sufficient governance threshold. This should come after the request for improvement has gone through the forum and undergone a snapshot poll for an aggregated consensus.
How an Improvement proposal gets written
After an improvement proposal gets passed, it gets assigned to a trusted reviewer who ensures that its status is marked “in progress”. The proposal should meet some requirements which include links to the governance forum discussions and snapshot polls on the Request for improvement. The IP (improvement proposal) should be submitted via gitlab after it has been polished to meet all protocol requirements. These are ensured by the reviewer.
Cleaning the IP for on-chain-governance
The improvement proposal’s pull request gets reviewed and audited for on-chain governance. The steps followed are:
The proposal gets merged to the proposal repository and gets checked for failing pipelines. This is done by the Multichainz developer team. If none is in existence, it goes to the next step.
The next step is uploading the files to IPFS or any other decentralized storage to be determined during the first deployment of the platform.
The IP’s payload gets tested. If it passes the tests, it moves to the next step.
Submission for On-chain governance
The IP is then submitted for on-chain voting by a community member with sufficient proposition power.
Types of Proposals
The two types of proposals available are Short Execution Proposals and Long time Lock Proposals. The short execution proposals affect minor changes on the protocol like asset listing and parameter adjustments while the latter affects core protocol functionality like updating code on the platform.
Asset Listing
Assets get listed on the platform through a short execution proposal. The protocol’s overall risk gets affected by each asset’s listing on a particular market. ie chain. Before an asset's reserve gets added to a market, there are some considerations that need to be factored in the proposal. For example:
The risks brought with collateral assets.
The advantages of the asset on the diversified asset lists on the market.
The risk of a point of failure brought by listing the asset in the market.
The insolvency risk carried by the asset.
Sample Asset Listing procedure
Proposal
● Risk Estimation
An asset’s risk has to get analyzed to determine the underlying risk to ensure it meets the minimum integration risk parameters. This is done by the community.
● Parameter Considerations
This basically allows the public to access the risk analysis performed above. This basically allows the public to access the risk analysis performed above
Community Views
Off-chain snapshots bring the community sentiment on their preference on the proposed asset.
Price Feed Check
This checks that the asset proposed has a pricefeed on chainlink oracles as the trusted price oracle.
Preparation Of Proposal Data
The Proposal should have the right PayLoad, ie. lendingToken, lending token, debt token, and rates contract (interest rates).
Submission
The final Step is submitting the proposal on-chain for final voting.