Introducing DAPP Network Governance Model
A Deeply Decentralized Future for the DAPP Network
TL;DR
- A new governance model is being introduced for the DAPP Network.
- A proposal system is at the core of DAPP Network governance. Any DAPP token holder can submit a proposal and the DAPP token holders must vote for it to pass.
- The keys for the DAPPSERVICES smart contract will be held by an MSIG of DAPP Network Guardians, in charge of deploying and signing changes based on approved governance proposals passed by the DAPP Network community.
One of the overarching goals in the blockchain industry to date has been to build distributed systems that can run autonomous protocols dictated by code and sufficiently large and distributed communities — rather than by a centralized authority. To make that a reality, decentralized governance is essential to ensure the security and continuity of networks.
Since its inception, our goal at LiquidApps has been to create a decentralized infrastructure framework that developers and applications can rely on in perpetuity.
Today, we are proud to introduce a community governance that will further decentralize the DAPP Network by distributing the keyholders and decision makers, making it a truly immortal, open protocol that can continue to evolve in many ways, with the community at the helm.
DAPP Network’s governance system enables the community to suggest, debate, and implement changes to the DAPP Network — without relying on, or requiring, any specific community leader or special permissions — using a robust proposal system and an elected set of MSIG Guardians.
Introducing DAPP Network Governance
When it comes to exchanging value in a trustless, permissionless fashion, it’s no surprise that governance has long played a crucial role in the development and maintenance of many Web3 ecosystems. As we continue to challenge traditional notions through the advent of innovative system architectures, increasingly hierarchical structures are being replaced by decentralized governance systems, DAOs (Decentralized Autonomous Organizations), and Guardian systems.
Decentralized governance systems can be thought of as social coordination mechanisms to achieve common, yet distributed, goals. Paired with an on-chain management system responsible for dictating how decisions are made regarding new features, system upgrades, and grants allocations, these governance systems can provide a technical framework to coordinate decentralized communities in a secure and accessible fashion.There are many different types of governance mechanisms, all of which ensure that important concepts are discussed, proposed and implemented in accordance with the community’s best interests as it sees them.
The DAPP token, in addition to being the access key to DAPP Network services and products, is also the correct vehicle to drive alignment and participation in the protocol. Such alignment between protocol stakeholders and token holders is crucial for successful decentralized governance to manifest.
The DAPP token will soon be adding new utility for proposing and voting on governance issues, and anyone who holds DAPP tokens can participate in DAPP Network governance. The DAPP Network sets the standard for how governed protocols operate, and we look forward to seeing how the community forges ahead towards accelerating decentralization for the entire ecosystem.
Governance Proposals
The proposals system is at the core of DAPP Network governance. Anyone can submit a proposal and all DAPP token holders are able to vote.
Proposal Process
- A proposal can be submitted by any DAPP token holder, for a fee of 1,000 DAPP tokens (fees may be returned to the creator as seen in section 3).
Note that governance proposals do not need to be technical, and do not necessarily involve code. Instead, they should be simple, well defined suggestions for a team, teams or community members to implement if passed. - For a proposal to be accepted, it must attain a threshold of 2% of the total supply of DAPP within an initial voting period of up to 30 days.
- If the proposal is accepted during the initial voting period, the proposal creator will receive the proposal creation fee back (the initial 1,000 DAPPs). If not, the proposal will be rejected and the creation fee will be transferred to a DAPP vault, managed by the MSIG of Guardians (more on that in the next segment), and will be dedicated to the ongoing development of the DAPP Network.
- For a proposal to be approved, it must attain a threshold of 10% of the total staked /locked DAPP tokens to the governance vault (DAPPGOVERNOR) AND win a majority of the votes cast by the end of a three-day voting period following the proposal’s approval (i.e. a proposal that receives 10% “Yes” but has 15% “No” will not be considered approved).
- During the voting period, votes can be added or removed and anyone can call for a voting Tally, and get rewarded if it was successful in changing the state. A proposal that hasn’t been approved by the end of three-day voting period will be rejected.
- Once approved, a proposal moves to the implementation queue, in which teams and community members can suggest implementations of the approved proposal.
- Once implemented, each implementation should be proposed as an eosio.msig proposal (“MSIG Proposal”) by the community.
- MSIG Proposals that are associated with passing proposals in the implementation queue will be reviewed and signed by the MSIG Guardians (unless the proposal is likely to harm the network in which case the Guardians would reject it, as explained later).
An illustration of the proposal process is demonstrated in the following diagram:
Initial Governance Parameters
The DAPP Network’s initial governance parameters are as follows:
- Proposal creation fee: 1,000 DAPP.
- DAPP vault staking lock-up time: 3 days.
- Threshold for acceptance: 2% of total supply of DAPP.
- Voting period for acceptance: up to 30 days from proposal creation.
- Threshold for approval: 10% of total staked/locked DAPP to the governance vault and a majority of the votes cast.
- Voting period for approval: 3 days from proposal acceptance.
One of the best things about DAPP Network Governance is that holders can propose to replace any element with new models as they see fit! (governance parameters included)
Decentralizing the Token Contract
As part of the DAPP Network governance system, the keys for the DAPPSERVICES smart contract will be held by an MSIG (multi-signature) of Guardians, in charge of deployment and signing changes based on approved governance proposals passed by the DAPP Network community. As an added security measure, the Guardians can also veto an approved proposal as an extreme measure in case a decision can be seen as malicious, deceiving or harmful to the ecosystem. DAPP Network Guardians include numerous community representatives from many different projects all over the world, that may be changed by the community through the on-chain proposal system.
DAPP Guardian System
As mentioned above, after a governance proposal passes, a decentralized DAPP Network Guardian multi-signature (MSIG) system is in place to oversee the implementation and deployment of proposals approved by the community. The Guardians can choose to examine a suggested implementation in-depth, outsourcing an audit to another party, or any other method that they see fit in order to execute the community’s decision in a reasonable manner.
Regardless of the review method the DAPP Network Guardians choose, every MSIG proposal (including, but not limited to, changes to the DAPPSERVICES smart contract, allocation of funds, etc.) must be signed by at least 30% of the Guardians in order for it to be executed. The Guardians have no special privileges over the DAPP Network community and are expected to sign any proposal regardless of their personal opinions (unless the proposal is likely to harm the network, which brings us to the Guardians’ additional responsibility).
DAPP Network Guardians play a significant role in safeguarding the DAPP ecosystem and its vital interests. When it comes to security and malicious acts that exploit the governance model against itself, Guardians can reject proposals that harm the DAPP Network by calling for veto, without going through the entire proposal process. With great power comes great responsibility — now, decentralized.
Guardians reject or veto malicious proposals using a tranche-based mechanism:
- Once at least 30% of Guardians have signed the MSIG Proposal, the time-lock mechanism creates a delay of 7 days until it is executed.
- Once 40% of Guardians have signed the MSIG Proposal, the time-lock mechanism reduces the delay to only 3 days before it is executed.
- Once at least 50% of Guardians have signed the MSIG Proposal, the time-lock mechanism releases and the MSIG proposal is executed instantly.
For example, let’s assume that an approved proposal has already been passed as an MSIG proposal by 30% of the Guardians and is currently under the 7 day time-lock. Now, a majority of the Guardians (>50%) wish to cancel the proposal as it has been deemed malicious and aims to damage the DAPP Network. The majority group may propose an MSIG Proposal to exclude the bad actors (i.e. the 30% of the Guardians who signed the malicious proposal), thereby nullifying their pending approval MSIG proposal. The majority’s “reverse” MSIG proposal becomes effective immediately upon 50% signatures, thus enforcing defense over the network.
The Inception of DAPP Network Governance
DAPP Network Governance facilitates the ability for the entire community to propose and make decisions on the future of the network, ensuring that no single entity has the power to make unilateral decisions.
We encourage developers building on top of the DAPP Network, DSPs operating the underlying infrastructure, and DAPP-holding community members to actively participate in the novel governance layer, which will be tested in the open and carve a new path forward for the network and space at large.
