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 Xyxyx DAO, a decentralized organization of XYXYX token holders responsible for shaping the protocol's future.

The DAO enables a community-driven approach to decision-making and management, empowering XYXYX token holders 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 token holders, 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

The governance process will typically follow a two-stage process:

(1) a public discussion post on the Governance Forum and (2) a Snapshot voting.

Forum

Governance proposals will typically start with a post on the forum. The forum post, though optional, is strongly encouraged. Feedback from the community and team will materially increase the chances of a successful and well-aligned governance proposal. Anyone can post and contribute to the discussion on the Governance Forum.

Snapshot

Governance proposals must be issued for voting on Snapshot and succeed to become implemented into the protocol.

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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 owing at least 0.00001 XYXYX can participate in the voting of 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. The address is whitelisted as author, however, has no voting power. No more addresses can be whitelisted.

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Future Implementations

Xyxyx will continuously strive towards an ideal balance of decentralization and productivity. In the future, the protocol will be moving towards implementations such as:

• Move from proxy voting to on-chain voting