Governance - DAO charter

Community Charter

One of the purposes of the 0VIX Protocol Association is to foster a community around the 0VIX Protocol (“Community”) and establish its decentralized governance.

As explained in the legal set up, the Association is a hybrid structure encompassing traditional organs along with decentralized ones, amongst which the Community and contributors.

The Community is notably entrusted with the power to decide on how the Protocol will be further developed by voting on new listings, rewards, fees, or deciding on incentive schemes. When deciding on such matters, the community acts as an organ of the Association.

THE COMMUNITY IS THUS IN CHARGE OF A SERIES OF DECISIONS RELATING TO THE PROTOCOL WHILE OTHER DECISIONS MAY BE ADOPTED BY CONTRIBUTORS.

BY VOTING, COMMUNITY MEMBERS ENDORSE THE ABOVE AND ACCEPT THE ADOPTED DECISIONS, WHETHER THEY VOTED FOR OR AGAINST, ALONG WITH ANY OF THE CONSEQUENCES ON THE PROTOCOL AND THEMSELVES.

AS A RESULT, COMMUNITY MEMBERS UNDERSTAND THAT THERE IS NO PERSON TO BLAME SHOULD THE DECISION HAVE UNINTENDED CONSEQUENCES OR SHOULD AN IMPORTANT AMENDMENT BE OMITTED OR REFUSED BY VOTERS. THERE IS ALSO NO PERSON TO BLAME SHOULD COMMUNITY MEMBERS REFRAIN FROM PARTICIPATING IN VOTES.

It is in everyone’s interest that the Community actively exercises the powers it was granted.

Below is a summary of the voting process for the Community:

Voting Process Summary

Disclaimer

The 0VIX Community is meant to ultimately encompass all token holders. Presently, as there is no token, it is open to anyone willing to contribute to the project.

1. Pre-Vote TOWN HALL

Community members can and are encouraged to hold independent town halls, currently via Discord. To set one up, users can contact community admins/moderators.

2. Soft proposal to the community on Discord

Before a proposal is set for a vote, it will be sent to the community on Discord. This will begin a period of discussion about the proposal: whether it should be voted on, how it should be amended, what options should be voted on, and how the results of the vote will be interpreted (quorum standards). The Community can take part in discussions as well as put forth ideas for protocol features or integrations to be prioritized next. This will serve as the ideal central point for all stakeholders to come together and discuss their needs.

Community members can and are encouraged to hold independent town halls also on Discord. To set one up, users can contact community managers.

3. Proposals launched on Snapshot

After the Community has discussed how the proposal will be voted on and what the contents of the proposal will be, the proposal is then created on Snapshot for off-chain governance voting. Snapshot is a platform for off-chain, gasless signalling on proposals, and it is widely used by popular DeFi protocols to bring formalised voting to submit improvement proposals for blockchain projects. If the Community considers the proposal as worth voting on, the proposal is then created for off-chain governance voting.

The proposal should specify

• A reference to the preceding discussions;

• The proposal as phrased as the result of these discussions;

• The voting options;

• If there is a quorum / threshold required to be reached

• Until when votes can be cast (polls should ideally be open for 2 to 3 days);

• The one in charge of implementing the decision if adopted (core Protocol developers, third party service providers or else).

4. Determining your voting power

Governance tokens are a way to provide token holders with governance rights with respect to a particular protocol, game, dApp, or DeFi application. As there is no token launched yet, the fastest and easiest set-up is using “pre-mined” VIX tokens (“preVIX”), that every user of the 0VIX Protocol automatically received as part of the pre-mine. The amount of preVIX corresponds to your voting power. Until the official token launch, all DAO proposals will be governed and voted on using the preVIX balance. preVIX is non transferable and is accrued automatically by the protocol reward system every epoch. Since preVIX is not an actual token, there are no snapshot (ERC20Snapshot) extensions needed due to the preVIX being non transferable. As long as you have a non-zero preVIX balance, you are able to participate in all voting and governance activities until further notice.

5. Voting

To vote, find the referenced Poll in the list of active proposals within the Protocol Snapshot Space.

Under ‘cast your vote’, choose your preferred outcome, and click ‘Vote’.

The most used voting mechanism is called “Single choice voting”. Each voter selects only one choice. The results will reflect these votes in terms of percentages.

A specific timeframe is determined according to the nature of the Proposal, but generally, it should last at least for 2 or 3 days. The platform weights votes by the amount of tokens a participating wallet address holds.

In the case there is not enough community engagement and the proposed change fails to gain sufficient momentum it is unlikely to proceed from this phase. The parameters for a minimum Quorum needed for participation will be at least 10% of all tokens.

Your vote to another eligible voter is possible but is effective only for future votes. If you delegate your vote while a poll is open, such delegation is not yet taken into account and your delegate will not yet benefit from your voting power.

6. Results are announced and implementation starts

Following the proposal, the Community will announce the results of the vote and begin implementation. If new and material information was omitted from the Proposal, the vote could be launched again. This is to ensure that community members have all the necessary information they need to make a decision.