SIP- 2 Formal Establishment of the Symmio DAO

Link to forum https://forum.symm.io/t/sip-2-formal-establishment-of-the-symmio-dao/47

Formatted for Snapshot ⬇️

Below is a majority of SIP-002 since it exceeds Snapshot’s maximum character count. Before voting, the proposal should be read in its entirety on the Symmio Fourm.

SIP-002: Formal Establishment of the Symmio DAO Authors: Lafa, Jack Knutson Date: 12/11/2024 Status: Proposed

Summary This SIP formally establishes the Symmio DAO as a decentralized governance body. It defines the DAO’s governance structure, operational framework, and procedures for submitting and voting on proposals, in line with the Symmio DAO Constitution. The DAO will be the primary decision-making entity responsible for managing the treasury, advancing Symmio’s mission, and overseeing all decentralized projects within the Symmio ecosystem.

Motivation To formalize the decentralized governance framework, empower token holders, and enable transparent, on-chain decision-making, this SIP is crucial for the legal and functional foundation of the Symmio DAO. This proposal aims to activate Symmio’s decentralized governance by enabling SYMM token holders to participate in decision-making processes.

Specifications

1. Symmio DAO Formation The Symmio DAO is hereby established as a decentralized, token-based governance entity. Its primary purpose is to manage the Symmio ecosystem by voting on and enacting binding DAO Resolutions in accordance with the Symmio DAO Constitution and Articles of Association.

2. Token Holder Governance Token holders of SYMM, who stake their tokens in the designated governance contract, are deemed “beneficiaries” and can participate in DAO activities, including:

• Proposing new governance changes. • Voting on active proposals. • Receiving benefits distributed from the DAO Treasury.

3. Proposal Submission Process The process for submitting, discussing, voting on, and executing proposals within the Symmio DAO will follow a clear lifecycle to ensure community participation and transparent decision-making. The stages of this lifecycle are outlined as follows:

3.1 Forum Discussion

A Symmio community member may post a potential proposal in the Symmio DAO governance forums. This phase encourages open dialogue and feedback from other community members. Active engagement in meta-governance discussions via forums and Discord is recommended to gain support and improve the proposal.

Moderation: No minimum token threshold is required to initiate a discussion. However, community moderators reserve the right to moderate and remove spam proposals during this stage.

3.2 Temperature Check

Once a proposal garners sufficient community discussion and support, it may move to an off-chain Temperature Check via a snapshot vote. The purpose of this phase is to gauge whether the proposal has enough backing to proceed. Proposals that pass the Temperature Check with majority support can advance to the next stage.

3.3 Proposal Creation

A community member with sufficient voting weight (holding at least 1,000,000 SYMM) submits the proposal on-chain. This triggers a 2-day delay period before voting officially begins, allowing the community to prepare for the vote.

3.4 Vote Period

The voting period lasts for 10 days. During this time, SYMM token holders may vote for or against the proposal. For a proposal to pass:

• It must meet the required quorum, which is defined as at least 33% of the current circulating SYMM token supply. • If the proposal fails to meet quorum or receives majority opposition, it will be canceled. • Proposers and supporters may revise and resubmit a sufficiently modified proposal in accordance with the guidelines from previous stages.

3.5 Timelock Period Once a proposal is approved, it will enter a Timelock Period of 2 days. During this time, the proposal is queued for execution, providing a final delay to ensure the community has an opportunity to raise any concerns.

3.6 Execution After the timelock delay has passed, the approved proposal can be executed. Any community member can interact with the governance contracts to execute the proposal on-chain.

Deviations in the Proposal Lifecycle

Council Vetos During the on-chain voting phase, the Security Council has the authority to veto any proposal if it is deemed harmful or dangerous. This measure provides an additional layer of protection against malicious proposals.

While the Security Council has the authority to veto any proposal during the on-chain voting phase if it is deemed harmful or dangerous, this authority does not extend to proposals aimed at abolishing or modifying the Security Council itself.

Late Quorum Prevention The voting period may be extended if quorum is reached late. If a proposal achieves quorum less than 2 days before the deadline, the voting period will be automatically extended by an additional 2 days to prevent governance attacks that attempt to meet quorum at the last minute.

Off-chain Proposals Certain proposals, such as elections or other administrative matters, may not involve any on-chain actions. These proposals will be voted on off-chain via a Snapshot vote. Regular off-chain proposals will have a 5-day voting period, while elections will have a 7-day voting period.

4. Voting Mechanism • SYMM token holders will vote on proposals. • A simple majority (50% +1) of participating votes will be required for a proposal to • pass, provided that a quorum of at least 33% of the current circulating SYMM token supply. • Votes can be cast through the designated governance interface on Symmio’s on-chain platform.

5. DAO Treasury Management • The Symmio DAO Treasury will hold SYMM tokens and other cryptocurrencies, which may be allocated by DAO Resolutions. • The DAO will have the authority to manage and disburse funds for the purposes of grants, bounties, research, and business development in support of the Symmio project. • Treasury disbursements will be made in accordance with Article 2, Section 3 of the Constitution, ensuring transparency and accountability through periodic reporting.

6. Board of Directors • The Symmio Foundation will appoint an initial Board of Directors as the Constitution outlines. • Directors will implement DAO Resolutions in compliance with the legal framework of the Cayman Islands and the DAO’s operational governance. • Future Directors can be elected, and current Directors removed, through a DAO Resolution.

7. Amendments to the Constitution Any proposed amendments to the Symmio DAO Constitution must be submitted as a SIP and require a two-thirds majority vote of all participating beneficiaries.

8. Security Council The Security Council is hereby established as a committee of 8 members who will serve as signers of a multi-signature wallet, responsible for executing both Emergency Actions and Non-Emergency Actions as delegated by the Symmio DAO. The Security Council will uphold the integrity of the Symmio DAO Constitution and will ensure the continued secure and stable operation of the DAO and associated blockchain networks. The powers and existence of the Security Council can be modified or eliminated through a Symmio Improvement Proposal (SIP) approved by the Symmio DAO.

Equivalent multi-signature contracts will be deployed across relevant chains governed by the Symmio DAO.

8.1. Emergency Actions

• The Security Council is authorized to take immediate action in response to any security emergency that could significantly compromise the integrity, confidentiality, or availability of the Symmio blockchain or any system governed by the Symmio DAO. • These actions (“Emergency Actions”) may include software upgrades, transaction rollbacks, or other necessary interventions to mitigate the emergency. • Emergency Actions will require a 6-of-8 approval from the Security Council members. • Emergency Actions should only be employed in true security emergencies, such as critical vulnerabilities or exploits. • Following the resolution of an emergency, the Security Council must release a full transparency report explaining the emergency and the actions taken to mitigate it, once it is deemed safe to do so. • The Symmio DAO retains the authority to modify or eliminate the Security Council’s power to perform Emergency Actions through a valid DAO Resolution (SIP).

8.2. Non-Emergency Actions

• The Security Council is also authorized to implement routine software upgrades, conduct system maintenance, and make other non-urgent adjustments (“Non-Emergency Actions”). • Non-Emergency Actions will also require 6-of-8 approval from the Security Council. • Approved Non-Emergency Actions will bypass the early stages of the proposal process and will proceed directly to the final stages (Phases 4 to 7) of the proposal review process, incorporating a delay before deployment to ensure sufficient time for review. • The Security Council may impose additional delays before deploying a Non-Emergency Action as deemed necessary. • The Symmio DAO reserves the right to alter or revoke the Security Council’s authority over Non-Emergency Actions via an approved SIP.

Founding Cohort

Lafa - Founder of Symmio Levy - Founder of IntentX Huf - Founder of Pear Protocol Matt - Magnus Capital Mazzett - Backed Protocol Ross - Muon Network Hedzed - CTO of Symmio Jack - BD + Ops at Symmio