VirtuSwapDAO Design
In order to participate in VirtuSwapDAO voting, you should stake any amount of VRSW tokens to redeem your vote-escrowed VRSW tokens, represented by “veVRSW” ticker and used for voting.
VirtuSwap DAO members can make three types of decisions related to the governance of the VirtuSwap protocol:
Ownership decisions - ownership proposals are not limited to specific subjects and include amongst other issues proposals related to: constitutional decisions (about governance mechanism and thresholds), allocation of funds for partnerships, deployment of VirtuSwap DEX on additional chains, appointing of members of the EmergencyDAO and decision to override Parameter or EmergencyDAO decisions (as defined below). Given the significant power Ownership proposals hold, the threshold to pass such proposals is a quorum of at least 40% of veVRSW tokens and over 50% majority from veVRSW actual voting.
Parameter decisions - parameter decisions are specific, predefined decisions that can be approved with lower thresholds. A decision can become a Parameter decision only if and after an Ownership decision categorized it as such. Parameter decisions are more technical in nature and can include for example a proposals to blacklist a token from the “Allowed Reserve Tokens” list. To approve a Parameter decision, the vote should pass with 20% quorum from veVRSW tokens and 50% majority support from veVRSW actual voting.
EmergencyDAO - VirtuSwap EmergencyDAO includes prominent figures from the DeFi ecosystem and key contributors from VirtuSwap ecosystem. The EmergencyDAO will be responsible and authorized to take measures to protect the protocol or users’ funds in extreme circumstances. Members of the EmergencyDAO will be appointed by an Ownership proposal, which shall provide their mandate and responsibilities. The threshold to pass an EmergencyDAO proposal is a normal majority of the EmergencyDAO members.
It should be noted that a minimum of 1,000,000 veVRSW tokens, which represent 0.1% of the total VRSW cap, is required to initiate a new Parameter or Ownership proposal. This threshold makes sure that the initiator of a proposal as an interest in the benefit of the protocol, that the attention of the DAO members will not be spammed by endless proposals on the one hand, but the relatively low threshold will enable many community members to initiate new proposals.
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