Decentralized Governance

Decentralized Governance

Decentralized Governance is at the core of how Collective DAO operates, ensuring that every significant decision within the organization is made transparently and democratically by its members. This governance structure is designed to empower the community, giving each member a voice in the direction and management of the DAO.

Snapshot Voting

• What is Snapshot?

  • Snapshot is a decentralized, off-chain governance platform widely used in the blockchain space. It allows token holders to vote on proposals without incurring gas fees, making the voting process more accessible and cost-effective. By leveraging Snapshot, Collective DAO ensures that every member can participate in governance without the financial burden that on-chain voting might impose.

• Eligibility to Vote:

  • To maintain a balance between broad participation and meaningful contribution, only members holding at least 0.1% of the total supply (1,000 CLXV tokens) are eligible to vote. This threshold ensures that voters have a vested interest in the DAO’s success and that decisions reflect the perspectives of those who are significantly invested in the project.

• Voting Process:

  • Proposal Submission: Members of the DAO who hold 5000 $CLVX tokens can submit a proposal for consideration, whether it’s related to project funding, changes in protocol, partnerships, or any other strategic decision. Proposals must be clear, detailed, and aligned with the DAO’s objectives.

  • Discussion Phase: Once a proposal is submitted, it enters a discussion phase where members can debate its merits, suggest improvements, and build consensus. This phase is crucial for refining ideas and ensuring that the community is fully informed before voting.

  • Voting Phase: After the discussion period, the proposal is put to a vote. Members with the required token holdings of 1000 $CLVX can cast their votes, with each vote weighted according to the number of tokens held. The voting process is transparent, and results are displayed publicly on the Snapshot platform.

  • Execution: If a proposal passes with the required majority, it is executed automatically through smart contracts, ensuring that the will of the community is implemented without delay.

• Benefits of Decentralized Governance:

  • Transparency: All decisions and voting outcomes are recorded on the blockchain, ensuring complete transparency. Members can track the progress of proposals and see how decisions are made, fostering trust in the governance process.

  • Inclusivity: By setting a low threshold for voting eligibility, Collective DAO encourages broad participation, allowing a diverse range of voices to be heard. This inclusivity ensures that decisions are representative of the entire community, not just a select few.

  • Efficiency: Snapshot’s off-chain voting mechanism allows for quick and efficient decision-making. Proposals can be submitted, debated, and voted on in a timely manner, enabling the DAO to respond swiftly to opportunities and challenges.

  • Autonomy: Decentralized governance reduces the risk of centralization and ensures that no single entity can dominate the decision-making process. Power is distributed across the community, aligning the DAO’s actions with the collective will of its members.

• Long-Term Vision:

  • As Collective DAO grows, the governance model will evolve to accommodate an expanding community and more complex decision-making processes. The DAO aims to continually refine its governance practices to remain agile, responsive, and aligned with the values of decentralization and community empowerment.

In summary, Decentralized Governance through Snapshot voting is what ensures that Collective DAO remains true to its community-driven ethos. It allows members to directly influence the DAO’s direction, making sure that the organization reflects the collective interests and ambitions of its contributors.