Purpose

This proposal transitions Defi App DAO governance from account-based voting to $HOME token-based governance, implementing vote power calculations based on combined ERC-20 holdings across Base and BNB Smart Chain networks plus staked HOME balances to establish $HOME as the primary DAO utility token.

Emergency Vote Schedule: This proposal operates under a 24-hour voting period to coordinate governance activation with TGE infrastructure deployment that aligns with listing exchange requirements.

Motivation

DIP-001 established account-based governance as an interim mechanism with explicit provisions for transitioning to $HOME token-based governance upon token launch. With HOME token deployment scheduled for June 10, 2025, the DAO must implement the planned governance transition to align voting power with protocol participation and long-term contributor commitment.

Token-based governance enables more nuanced participation where contributors with greater protocol investment have proportional influence while maintaining accessibility for all HOME holders to participate in DAO decision-making.

Operational Coordination: Implementation timing coordinates with TGE infrastructure deployment to ensure governance functionality is available immediately upon HOME token launch, providing seamless transition for community contributors receiving TGE allocations.

Rationale

The proposed HOME governance implementation fulfills the roadmap established in DIP-001 while incorporating weighted voting that prioritizes staked HOME participation. The 80/20 weighting structure (staked vs. liquid HOME) incentivizes long-term protocol commitment and governance participation while maintaining accessibility for all token holders.

By aggregating balances across Base and BNB Smart Chain networks, the system accommodates multi-chain HOME distribution. The weighted approach ensures that contributors who demonstrate commitment through staking receive proportionally higher governance influence, aligning voting power with protocol security participation.

The accelerated timeline ensures governance infrastructure is operationally ready concurrent with TGE, allowing immediate community participation in HOME-based governance upon token availability. Coordinating governance activation with token deployment prevents governance gaps and ensures seamless transition for DAO contributors who receive HOME allocations at TGE.

Key Terms

Vote Power: Total governance influence calculated using weighted formula (stakedHOMETotal × 0.8) + (liquidHOMETotal × 0.2).

Staked HOME: HOME tokens deposited in official Defi App staking contracts that contribute to protocol security and participate in protocol incentive mechanisms.

Snapshot Block: The specific block height across relevant networks used to calculate HOME balances for governance proposals.

Governance Transition: The switch from account-based voting to HOME token-based voting power.

Specifications

Technical Requirements

Snapshot Strategy Implementation

Replace existing api-v2 account verification strategy with custom defi-app-voting strategy implementing weighted multi-network token balance aggregation:

Strategy Configuration:

• Strategy Name: defi-app-voting
• MFD Network Queries: Base Network (Chain ID: 8453)
• Weighting Formula: (sHOME × 0.8) + (HOME × 0.2)

Data Sources:

• Liquid HOME: ERC-20 token balances across Base and BNB Smart Chain
• Staked HOME: MultiFeeDistributor contract lock balances
• Snapshot Block: Coordinated across all networks for proposal consistency

Vote Power Calculation

HOME governance implements weighted voting that prioritizes long-term protocol commitment through staking participation:

Vote Power = (stakedHOMETotal × 0.8) + (liquidHOMETotal × 0.2)

Weighting Methodology:

• Staked HOME (sHOME): 80% vote weight per token
• Liquid HOME: 20% vote weight per token

This weighting structure incentivizes protocol security participation and governance commitment while maintaining accessibility for all HOME holders. Contributors who stake HOME tokens demonstrate long-term alignment and receive proportionally higher governance influence.

Network Specifications

Query Type	Network	Contract Type	Contract Address
Wallet Balances	Base, BNB Chain	ERC-20	0x4BfAa776991E85e5f8b1255461cbbd216cFc714f
Staked Balances	Base	MultiFeeDistributor	0xC9714F8f036087d801f38C4105194e150d3a1864

Implementation Details

Governance Infrastructure Updates

• Configure Snapshot space with new HOME balance strategy
• Maintain existing proposal submission through DAO Council (DIP-002)
• Update governance interface at app.defi.app/governance to display HOME vote power

Voting Thresholds

Constitutional DIPs: 1,000,000 HOME total vote power required for proposal validity

Non-Constitutional DIPs: 500,000 HOME total vote power required for proposal validity

Threshold Methodology: These initial thresholds are intentionally set at conservative levels to ensure governance accessibility while establishing baseline participation requirements.

As the DAO develops empirical data on community engagement patterns and token distribution dynamics post-TGE, these thresholds are subject to revision through subsequent governance proposals to optimize for meaningful participation without creating prohibitive barriers to proposal validity.

Affected Systems

• Snapshot governance infrastructure and voting strategy
• DAO proposal validation and execution mechanisms
• Community governance documentation and user education materials

Steps to Implement

Emergency Implementation Schedule

Due to TGE operational requirements and infrastructure deployment coordination, this DIP follows an accelerated implementation timeline to ensure governance infrastructure readiness for HOME token launch.

1. Snapshot Strategy Activation

• Custom defi-app-voting strategy submitted to Snapshot Labs for integration
• Awaiting merge approval into /snapshot-strategies repository
• Activate production configuration upon strategy availability
• Timeline: Concurrent with Snapshot Labs approval process

2. TGE Infrastructure Coordination

• Synchronize governance activation with HOME token deployment schedule
• Validate governance functionality for immediate post-TGE usage
• Timeline: Coordinated with TGE schedule (June 10, 2025)

3. Community Transition Communication

• Publish governance transition announcement with implementation details
• Update governance documentation for HOME-based weighted voting
• Timeline: Upon DIP approval

Timeline

Emergency Implementation: 24 hours total governance transition

Strategy Dependency: Snapshot Labs merge approval

TGE Coordination: June 10, 2025

Operational Validation: Immediate post-implementation

Total Implementation Time: 24 hours (Emergency Schedule)

Legal and Compliance Considerations

HOME token implementation as a DAO utility token maintains compliance with the existing Cayman Islands foundation structure established in DIP-001. The token serves exclusively as a governance utility for protocol participation and does not constitute ownership interests or profit-sharing mechanisms.

All governance activities conducted through HOME token voting remain within the purview of the Foundation's delegated authority and existing regulatory compliance framework. The transition from account-based to token-based governance represents an operational enhancement rather than a fundamental change to the DAO's legal structure or compliance obligations.