Purpose

This proposal establishes the DAO Council structure for Defi App, defining core contributor governance authority, working group organization, and community proposal pathways to ensure efficient decision-making while maintaining decentralized community participation in DAO governance.

Motivation

DIP-001 establishes the foundational DAO structure with account-based voting and community governance infrastructure. Building upon this foundation, DIP-002 aims to outline operational structures to efficiently evaluate proposals, execute approved initiatives, and maintain decision-making continuity.

A structured Council of core contributors will provide the necessary operational framework to complement the community governance established in DIP-001, ensuring efficient proposal processing while preserving community access to the governance process through established channels.

Rationale

The proposed Council structure balances operational efficiency with decentralized governance by establishing clear authority for proposal submission and execution while maintaining community proposal rights through Discord governance channels. This framework ensures sustainable DAO operations without creating governance bottlenecks or excluding community participation.

Working group organization aligned with DIP categories (Process, Funding, Informational, Technical) provides domain expertise for proposal evaluation and ensures efficient decision-making through clear authority delegation.

Key Terms

Core Contributors: DAO contributors with operational authority and ongoing responsibility for Defi App infrastructure, development, and business operations.

DAO Council: Core contributors with authority to submit, evaluate, and execute DIPs across designated working groups.

Working Groups: Functional divisions within the Council organized by governance domain and operational responsibility.

Governance Authority: The power to formally submit DIPs to Snapshot voting and execute approved proposals.

Community Steward: A designated role responsible for reviewing and advancing community-submitted proposals through governance channels.

DIS: Defi App Improvement Suggestion. An informal suggestion submitted by community members to propose ideas, improvements, or feedback related to the protocol or ecosystem. DIS submissions use a simplified format and are non-binding. They are reviewed by the Community Steward and relevant Working Group(s) to assess relevance and potential next steps, including possible escalation to a formal DIP.

Specifications

Council Structure

The DAO Council operates through three Working Groups with defined governance authority over specific DIP categories:

Executive Operations

• Authority: Process DIPs, Funding DIPs
• Responsibilities: Constitutional changes, treasury allocation, budget approvals, governance framework modifications

Technical Infrastructure

• Authority: Technical DIPs
• Responsibilities: Protocol upgrades, smart contract modifications, infrastructure changes, security implementations

Community Development

• Authority: Informational DIPs, Business Development Funding DIPs
• Responsibilities: Strategic partnerships, marketing initiatives, community programs, ecosystem development funding

Implementation Details

Council Authority

The Council maintains exclusive authority to:

• Submit formal DIPs to Snapshot voting
• Execute approved DIP implementations
• Authorize treasury transactions
• Modify operational infrastructure
• Enter binding agreements on behalf of the DAO

Community Proposal Pathway

Community contributors may submit proposal ideas through the established Discord governance forum with the following process:

1. Community Submission: Informal proposal ideas submitted via forum-based governance channels.
2. Initial Review: Community Steward conducts initial review and serves as content approval checkpoint, evaluating proposal feasibility and alignment.
3. Initial Evaluation: Informal proposal is marked as either Escalated, Rejected or Flagged (for errata or quick resubmission).
4. Working Group Evaluation: If Escalated, relevant working group reviews community proposal feasibility for formal DIP submission. If working group is not in favor, informal proposal is then marked as Rejected or Flagged.
5. Formal Submission: If approved by working groups, Community Steward changes tag to Approved and submits refined proposal as an official, numbered DIP.

Council Operations

The Council operates through regular coordination meetings and working group sessions as required for daily operations.

Affected Systems

• Snapshot proposal submission authority
• Discord governance forum administration
• Multisig operations
• Community proposal review infrastructure
• DAO operational decision-making processes

Council Composition

Functional Role Designation

Executive Operations Working Group

• Core Operational Contributors
• Security Cosigner

Technical Infrastructure Working Group

• Developers
• Security Cosigner

Community Development Working Group

• Community Management
• Marketing
• Business Development

Steps to Implement

1. Working Group Formation
   Establish working groups with defined authority and communication channels.

2. Council Operations Framework
   Establish meeting schedules, record-keeping systems, and decision documentation processes.

3. Governance Infrastructure Setup
   Configure Discord governance forum and workflows.

4. Community Steward Role Definition
   Define Community Steward responsibilities and selection process for community proposal review.

Timeline

Implementation begins following vote completion, (1 hour warmup + 5 day voting period), though preparatory work may begin earlier if operational overhead is minimal.

Total Implementation Time: Est. 10 days from vote completion

Risk Assessment

Operational Risks

Standard operational dependencies apply to Discord-based community infrastructure.

Dependencies

• DIP-001 implementation completion
• Discord governance forum infrastructure
• Established multisig operations across supported chains
• Community Steward operational capacity for proposal review

Legal and Compliance Considerations

The existing Cayman Islands foundation structure provides the necessary legal and administrative framework to support DAO Council operations, including the establishment and maintenance of Working Groups and related governance processes.

All Council activities, including DIP submission, treasury operations, working group decisions, and off-chain agreements, are executed within the purview of the Foundation and subject to applicable local regulatory and compliance obligations. The Foundation retains the authority to delegate or execute actions in alignment with resolutions approved by the Council or defined within this proposal.

User privacy and data governance are maintained in accordance with the platform's published privacy policy and jurisdictional requirements.

The proposed Council structure—specifically the delegation of operational authority to Working Groups and core contributors—is legally enabled under the Foundation's constitutional documents and binding agreements. Public disclosures will be made in accordance with applicable Cayman Islands law and regulatory requirements.

Community proposal pathways maintain compliance with decentralized governance principles while ensuring operational efficiency through structured review processes. The Foundation reserves all rights to interpret, delay, or revise such operations and procedures based on ongoing legal review and regulatory developments.