Governance

PUBLIC PREVIEW DOCUMENT

This document is currently in public preview and may change significantly as feedback is captured from the community.

Overview

Xyxyx Protocol is managed by the Xyxyx DAO, a decentralized organization of XYXYX tokenholders responsible for shaping the protocol's future.

The DAO enables a community-driven approach to decision-making and management, empowering XYXYX tokenholders to influence the development and operation of the Xyxyx Protocol.

Through a collective voting mechanism and a consensus-building process, Xyxyx DAO ensures that the Xyxyx Protocol evolves in alignment with the interests and inputs of XYXYX tokenholders, fostering a decentralized, community-centric governance model.

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Governance Framework

Xyxyx DAO is responsible for governing the Xyxyx Protocol, which includes (1) proposing changes and new features to the protocol; (2) dictating the policy for accessing the Xyxyx Launchpad; (3) dictating the Treasury, and (4) improving governance itself.

The protocol governance is structured upon two types of governance proposals:

Xyxyx Implementation Proposals (XIPs)

Proposals to change or implement a new feature to the protocol. Learn more

Treasury Management Proposals (TMPs)

Proposals to execute relevant actions involving management of the Treasury. Learn more

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Governance Process

XIPs and TMPs must follow a two-stage process:

1. A public discussion post on the Governance Forum

2. A voting poll via Snapshot

Governance Forum

Proposals must start with a post on the Governance Forum. Feedback from the community will materially increase the chances of a successful and well-aligned governance proposal.

• The appropriate space to gauge interest in XIPs is the Proposals topic, which is dedicated to proposing XIPs for public discussion in the Governance Forum.

• For TMPs, the appropriate space to gauge the interest of the community is the Treasury topic, which is dedicated to proposing TMPs for public forum discussions.

• Anyone can post and contribute to discussions on the Governance Forum.

Snapshot

Once a public discussion has been conducted around an XIP or a TMP in the Governance Forum, the author must issue the proposal for a voting poll via Snapshot.

• For XIPs, the author must use the XIP template to construct the proposal.

• For TMPs, the author must use the TMP template to construct the proposal.

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Governance Parameters

Proposal Submission Threshold: 1 XYXYX

To submit a proposal, the user must have at least 1 XYXYX.

Proposal Voting Threshold: 0.00001 XYXYX

Any user who owns at least 0.00001 XYXYX can participate in voting for any proposal. Voting is calculated by a weighted voting system, where voting power is proportional to the amount of XYXYX tokens cast, i.e., 0.5 XYXYX = 0.41% of voting power; 1 XYXYX = 0.82% of voting power; 2 XYXYX = 1.64% of voting power, and so on.

Voting Period: 10 days

Once the voting period is live, the DAO members will be able to cast votes during this period.

Quorum Threshold: 25% of total supply

When the voting period ends, it's checked if the number of 'Yes' votes exceeds the protocol's quorum threshold. Xyxyx DAO requires 25% of XYXYX's total supply (30.25 of 121 XYXYX) to vote 'in support' to reach quorum (i.e., at least 30.25 XYXYX need to cast 'Yes' votes to the quorum be reached and subsequently, if having majority support, a proposal be considered passed).

Timelock Queue: 3 days

After the voting period, proposals with a majority support are considered passed and placed into a timelock queue which delays proposal execution, giving a period of time for users to adapt to the changes that will be implemented in the protocol.

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Governance Infrastructure

• Forum: forum.xyxyx.pro

• Snapshot: vote.xyxyx.pro

• ENS: xyxyxdao.eth

Xyxyx team uses the address 0xB42d...B7a1 as a governance node for issuing proposals on Snapshot. 0xB42d...B7a1 is whitelisted as author, however, the address has no voting power. No more addresses can be whitelisted.