Decentralized Autonomous Organizations (DAO) is an entity structure in which token holders participate in the governance and decision-making of a project. Instead of relying on a single individual or small collection of individuals to guide the direction of the project, a DAO gives every member a voice, vote, and opportunity to propose initiatives.
Who can create proposals?
Any user with 50,000 YDF in holdings, staked principal, or annual earnings will be able to create a DAO proposal for other holders to vote on.
How is voting power determined?
Rather than have voting power based on simply holding YDF tokens, the YDF DAO's voting power takes into account the staked YDF as well by using the following calculation:
This includes all staked NFTs between both the Ethereum and Arbitrum chains combined.
Wait, there's no DAO contract? How is DAO data handled?
In order to allow voting power for any DAO proposal to support YDF from both chains in a seamless and user-friendly manner, all DAO data interactions are signed and stored off-chain in a database with a timestamp similar to storing in an on-chain transaction. We will potentially adjust this in the future, but for now all validation and verification of interactions with the DAO are stored alongside said interactions and can be authenticated and verified at any moment in time.
We wanted it to be easy and seamless to calculate the voting power of ALL YDF across both blockchains we're live on. As YDF constantly flows through the ecosystem, syncing this data across both chains would be unfeasible due to the gas fees required to execute the syncing. This would also force the cost of voting and interacting with the DAO to be paid by user, which has proven for other projects to be extremely unreasonable, especially on Ethereum.
To make the DAO feasible and cost efficient for holders, all DAO data is stored off-chain in the YDF database.
When creating a proposal or casting a vote on a proposal, the user is prompted to execute an authenticated signature to validate that the action was indeed taken by the connected wallet.