DAO Governance Process Specification

Overview

This document defines the governance framework and execution architecture for the NELX DAO, outlining how proposals are created, validated, approved, and executed. The DAO manages the entire protocol, and all changes, updates, and new initiatives must be performed via DAO voting. Token holders are empowered to participate in key protocol decisions, including updates to interest rates, LTV ratios, collateral types, and other critical parameters.

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Governance Thresholds and Rules

The following thresholds apply to any proposal that is subject to DAO voting. All proposals must go through the voting process, which is binding for the governance of the protocol.

Proposal Threshold

• Requirement: Minimum of 100,000 NELX tokens to submit a proposal.

• Purpose: Prevent spam and ensure proposers are invested in the protocol.

Voting Threshold

• Requirement: Minimum of 50,000 NELX tokens to vote.

• Purpose: Ensure voters have significant stake while remaining inclusive.

Voting Period

• Duration: 7 days.

• Decision: Quorum and majority approval required for success.

Governance Principles

• Balance between security, efficiency, and community participation.

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Governance Lifecycle

Proposal Lifecycle Stages

Pending

• Proposal is created but not yet active.

Active

• Voting period starts.

• Token holders vote on the proposal.

Succeeded

• Proposal meets quorum and approval threshold.

• Ready for multisig verification.

Defeated

• Proposal fails quorum or approval.

Executed

• Proposal passes multisig approval.

• Proposal actions are executed on-chain.

Not Executed

• Proposal meets quorum but is not approved by multisig (currently redirected to "Defeated").

Lifecycle Flow Summary

[Pending] --> [Active] --> [Succeeded] --> [Executed] or [Defeated]
                                   \--> [Not Approved by Multisig] --> [Defeated]
[Active] --> [Defeated] (Quorum or Approval failed)

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Summary

The NELX DAO framework is built to ensure secure, decentralized, and transparent governance. Token holders are empowered to steer the protocol through well-defined thresholds and a multisig-enabled execution process.