SUMMARY

The Degen DAO (the “DAO”) Constitution (the “Constitution”) authorizes a process to bring forth proposals (”Proposals” or “Proposal”) to the DAO. This proposal sets forth the processes that will govern the DAO’s Proposal Process.

DESCRIPTION

The process described below governs how proposals will be presented to the DAO. Proposals will first be submitted to the Community Council for consideration before being submitted to the DAO for discussion and a vote. Proposals, in the Community Council’s discretion, can follow either the normal or expedited approval process. Voting on the proposal will be subject to the voting requirements in the Constitution and the quorum requirements below.

MOTIVATION

The purpose of this proposal is to create a framework for the DAO to thoughtfully and carefully consider proposals while ensuring proposals follow an efficient and consistent process.

TECHNICAL DETAILS

Section I.01. Submitting a Proposal to the Community Council

Holders of DGEN are encouraged to discuss any potential Proposal in the Knights of Degen official discussion forum (“KoD Forum”) to gain support or refine the potential Proposal before submission to the Community Council.

Once a holder of DGEN (”Holder”) is ready to submit a Proposal to the DAO for consideration, the Proposal must first be submitted to the Community Council for approval before being considered for adoption by the DAO.

In the event the Community Council determines not to approve a Proposal, the Proposal will not be submitted to the DAO for consideration unless the Holder submitting the Proposal elects to the Community Council override process. Under this process, the full DAO may override the Community Council’s denial of a Proposal and thereby pass the Proposal. To do so, however, the voting will follow the Normal Proposal Process below except the DAO must pass the override Proposal by a voting margin of three-quarters of the votes cast.

If a Proposal is rejected by the Community Council, the Holder is encouraged to discuss the Proposal in the KoD Forum to gain support or refine the Proposal before resubmission.

Section I.02. Normal Proposal Process

Except for an Expedited Proposal discussed below, once a Proposal is approved by the Community Council for submission to the DAO, the Proposal will follow the steps set forth in this Section (“Normal Proposal”).

1. Governance Cycle The governance cycle for the DAO is seven days and begins on Sunday and runs through Saturday of each week (“Governance Cycle”).

2. Submission to the DAO Any Proposal that is approved by the Community Council during a given Governance Cycle will be offered to the DAO for consideration at the beginning of the next Governance Cycle.

   During the intervening time period, the Holder proposing the Proposal must work with the Community Council to ensure the Proposal is set forth in an appropriate written format for consideration by the DAO.

3. Discussion by the DAO At the beginning of each Governance Cycle, any Proposal that was approved by the Community Council in the previous Governance Cycle will be offered for discussion by the DAO. The written Proposal (“Written Proposal”) will be posted in the KoD Forum to discuss the submitted Proposal. Discussion will be open on each Proposal for one full Governance Cycle (“Discussion Period”).

4. Submission for Vote Following the Discussion Period, the Holder submitting the Proposal must decide whether to move forward with a vote by the DAO on the Proposal.

   The Written Proposal offered to the DAO at the beginning of the Discussion Period may not be revised before a vote by the DAO. In the event the Discussion Period necessitates changes to the Proposal, the Proposal should be withdrawn and resubmitted to the Community Council for consideration.

5. Timing of Vote Voting on a Normal Proposal will begin on Tuesday of the Governance Cycle following the Discussion Period.

   The vote will be open for at least 48 hours.

Section I.03. Expedited Proposal Process

If the Community Council, in its sole discretion, deems that a Proposal should be considered on an expedited basis (an “Expedited Proposal”), the Proposal will follow the steps set forth in this Section.

1. Submission to the DAO Any Expedited Proposal that is approved by the Community Council will be offered to the DAO for consideration as soon as practicable.

   During the intervening time period, the Holder proposing the Expedited Proposal must work with the Community Council to ensure the Expedited Proposal is set forth in an appropriate written format for consideration by the DAO.

2. Discussion by the DAO Once the written Expedited Proposal (“Written Expedited Proposal”) is posted in the KoD Forum and a new forum opened to discuss the Expedited Proposal, the discussion will be open on the Expedited Proposal and last for at least twelve hours (“Expedited Discussion Period”).

3. Submission for Vote Following the Expedited Discussion Period, the Holder submitting the Expedited Proposal must decide whether to move forward with a vote by the DAO on the Expedited Proposal.

   The Written Expedited Proposal offered to the DAO at the beginning of the Expedited Discussion Period may not be revised before a vote by the DAO. In the event the Expedited Discussion Period necessitates changes to the Expedited Proposal, the Expedited Proposal should be withdrawn and resubmitted to the Community Council for consideration.

4. Timing of Vote Voting on an Expedited Proposal will begin as soon as practicable after the Expedited Discussion Period.

   The vote on an Expedited Discussion Period will be open for at least 24 hours.

Section I.04. Quorum

Initially, the DAO will not have a quorum requirement on votes to enable the DAO sufficient time to analyze voting participation and determine appropriate quorum requirements. Once a sufficient number of proposals have been considered, the DAO will adopt a proposal addressing quorum requirements for proposals, including with respect to the Dissolution process in Article VIII and the Amendment process in Article IX of the Constitution.

Section I.05. Committees

The DAO may from time to time form committees and sub-DAOs to act on the DAO’s behalf, including the Community Council. To be qualified to serve on a committee, an individual must be a holder of a Knights of Degent NFT (”Knight Holder”).

Section I.06. Amendments of Proposal

Once a Proposal is approved by the DAO, the Proposal may only be amended or withdrawn by following the Normal Proposal or Expedited Proposal process.

Section I.07. Implementing Approved Proposals

Once a Proposal is approved by the DAO, the Knight Holder that made the Proposal will work with the Community Council and the head of DAO Operations to implement the Proposal.

BUDGETARY ANALYSIS

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ARGUMENTATION

FOR

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AGAINST

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DAO VOTE

• Voting Details:
  • Because this is a DAY 0 Proposal, the vote will be open for 12 hours and be approved by a majority of votes cast during the 12 hour period.
  • Any holder of a Knights of Degen NFT through out the voting period on the Day 0 Proposals is eligible to vote.
  • Each holder of a Knights of Degen NFT is entitled to one vote per Knights of Degen NFT held.