Governance
Last updated
Last updated
The protocol is governed through a decentralised autonomous organization (DAO) structure. The $GSD token is the governance token where holders can participate in the governance of the protocol through voting rights.
The governance model of a DAO is the mechanism through which decisions are made. It could range from a straightforward democratic voting system to a more complicated multi-step process that incorporates input from various parties with a vested interest.
Here are some crucial considerations to keep in mind when it comes to DAO governance models:
The design of the governance model should align with the objectives and values of the organization.
It's essential that all stakeholders in the DAO have a voice in its operations.
The governance model should be impartial and clear, so that everyone has a complete understanding of what is happening and the reasons behind the decisions being made.
Types Of DAOs
There are various types of DAOs to choose from.
Protocol DAOs
Protocol DAOs are the most common type and handle the day-to-day operations of the organization. They are responsible for developing the underlying protocols that govern the blockchain network. Another option is Application DAOs, which concentrate on creating decentralized applications.
Operating System DAOs
These DAOs serve as the foundation for other DAOs and are responsible for creating, managing, and executing smart contracts. They provide a starting point for decentralized governance and can be utilized to establish any type of DAO.
Investment DAOs
The most popular investment DAO is the Pooled Investment DAO, where members pool their funds together to invest in various assets. Another type is the Diversified Investment DAO, where members invest in several different DAOs, providing greater diversity and reducing the risk of investing in a single organization.
Media DAOs
Media DAOs are decentralized autonomous organizations focused on the media industry. They provide a platform for content creators to collaborate, work on projects, and share ideas. With media DAOs, power is distributed evenly among community members, creating a more democratic system and reducing the influence of a few individuals in controlling content.
Collector DAOs
Collector DAOs gather various data, such as from social media or surveys, to inform investment or product development decisions. They are transparent, allowing everyone who participates access to the collected data and a say in its use.
Social DAOs
Social DAOs empower people to have a voice and influence in the organization's operations through equal voting and consensus-based decision making. They are ideal for collaborative projects such as software development or product creation and can often be more successful than traditional businesses due to their community focus.
Grants DAOs
Grant DAOs distribute grants to other DAOs to support decentralization and diversify investment portfolios. An example is grants.io, which has a streamlined system for applying for grants.
The Gold Standard DAO falls under the protocol DAO, with the multiple yield aggregator system which sorts the best APY and pays out in Gold. A 100% decentralized ecosystem.
Gold Standard DAO is owned by the community and We want to ensure that the community has all the say and decisions on how the project grows and to give the best possible experience as a decentralized autonomous community, so we do not fear our decisions being challenged, as we believe a decision is right when it is confirmed.
Creating Proposals:
What is a DAO Proposal?
A DAO proposal is a suggestion put forward by a member of the DAO community or an individual member. It is a well-defined plan that outlines a particular idea, the methods of implementation, and the financial resources needed to execute the idea.
To create a proposal on the Gold Standard DAO, you will need a minimum of 100 $GSD
The proposal must be a mature idea that has progressed beyond the initial conceptual phase and is ready for evaluation by the community. For instance, proposals could include "Establish a Treasury Management Team" or "Introduce an Improved Onboarding Process for New Members". Usually, proposals come with a funding request, meaning that funds are requested from the DAO's treasury. However, some DAOs have categories for proposals that do not require funding, such as modifications to the governance structure, the DeFi protocol the DAO is managing, or elements of the DAO that can be implemented without financial support.
How do you decide who can post proposals?
Everyone can create proposals on The Gold Standard DAO voting platform, be it suggestion, partnership, product upgrade and implementation, given that you have the minimum amount in $GSD needed to create a proposal.
The Voting Process:
Quadratic voting
Each user can spread voting power across any number of choices. The results are calculated quadratically, thanks to which the number of individual voters matters more than the sum of voting power contributed.
This helps Dilutes the whales' voting power in favor of smaller holders. Individuals will matter more than the amount of tokens.
Quadratic voting mechanism allows voters to express their preferences in a way that ensures that their influence on the outcome is proportional to the intensity of their preferences. In other words, voters can assign more weight to their votes based on how strongly they feel about a particular issue or proposal. This method can be especially useful for communities that want to ensure that all members have an equal say, even if they have different levels of resources.
How Quadratic Voting Works
Each voter is given a certain number of voting tokens. These tokens can be used to cast votes on any proposal that is being considered by the community.
Each vote costs a certain number of tokens, and the cost of each vote increases as more votes are cast. This means that voters who are more passionate about a particular proposal will have to spend more tokens to express their views, but their votes will carry more weight as a result.
The final outcome of the vote is determined by counting the total number of tokens that have been spent on each proposal. The proposal that receives the most tokens is considered to be the winner.
Benefits of Quadratic Voting:
Proportional Representation: Quadratic voting ensures that each voter's influence on the outcome is proportional to the intensity of their preferences. This means that everyone has a voice, even if they have different levels of resources or experience.
Fairness: Quadratic voting eliminates the need for voters to choose between competing proposals, as they can express their preferences for each proposal independently. This helps to ensure that the final outcome is fair and representative of the entire community.
Encourages Thoughtful Decisions: Quadratic voting forces voters to consider the cost of each vote, which encourages them to make thoughtful decisions about how they want to allocate their tokens. This can help to reduce the impact of "spam voting" and other forms of vote manipulation.
For more information on quadratic voting refer to this article.