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.
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.
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
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.
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