Umami DAO Proposal #2: Initial DAO Framework and Structure

This proposal seeks to establish the general voting and proposal procedure for Umami DAO Governance.

The goal of this system to enable both fairness, relative speed of execution, and the opportunity for discussion.

High Level: Voting and Proposals via Snapshot, with Commonwealth as a discussion forum. We will adopt the hybrid model of operations as put forward by Aragon: aside from the proposals put forth by the community, the multisig will be empowered to act on day-to-day issues without the need to create a proposal every time a decision is necessary.

Proposals should be utilized for: - Large treasury activity or investments - Changes to governance procedure - Contributor or core team compensation - Substantial alternations to tokenomics, distributions, or rewards - Significant partnerships, acquisitions, or collaborations *- Changes to the multsig, any advisory council, or working group creation *- Alternations to these rules or creation of a new DAO voting system *- The dissolution of the protocol and DAO and the winding down of the treasury

The multisig and core team would have authority to execute the day-to-day or operational functions of their work without the requirement to create a proposal. These include but are not limited to: - Operational expenses - Testing and deployment of contracts and features - Marketing and social media for the Umami platform - Regular treasury management - Day to day operations of the protocol

In the event that the DAO believes that the multisig has overstepped their authority in an action or decision, a proposal can be made to a). codify this action or decision as one that falls within DAO control and b). discuss any renumeration, resolution, or consequences as needed.

Proposal Procedure:

1. Create a Initial Request For Comments (IRFC) on Commonwealth. Post your IRFC in Commonwealth with the following heading "IRFC - [Proposal Name] with the following format:

Draft Proposal Title

Author/s

Summary Brief overview of the intended proposal.

Abstract Brief background of the proposal.

Motivation Why is it being put forward to the community?

Specification Key metrics of what changes the proposal is intending to implement.

Supporting Evidence (If any/or required for additional context) Any supporting links, documents, graphs, tables, resources to help provide additional context to the proposal.

Implementation If successful, describe the timeline of when this proposal will be implemented.

Create a simple Poll within this Commonwealth post. Poll type should be Single Choice, i.e. users can select a single choice from the poll -- with an Automatic Close date of 72 hours after the proposal is made.

2. Post a link to the IRFC in Discord channel #gov-irfc to request community feedback.
3. If the IRFC has passed after 72 hours with a simple majority, it can move on to the next stage. If the IRFC is not passed, it can be resubmitted in 1 week's time to avoid spam and abuse.

Once the IRFC has passed a simple majority poll, the Proposal can move to a Snapshot Vote.

1. Prepare the most updated version of the Proposal, incorporating all the feedback gained during the IRFC process.
2. Tag the @governance_support role on Discord in the #gov-snapshot channel. The Governance Support team will prepare the Snapshot post, review the proposal for clarity and accuracy, and initiate the vote. The voting term will be 72 hours and the choices will be identical to the IRFC.
3. Should the Governance Support team have serious concerns about the proposal, or find credible examples of fraud or dishonest behavior, or simply require further clarification and information, they will create a new thread on Commonwealth, using the format "IRFC REVIEW - [Proposal Name]".
4. Once approved and posted, the community will be notified as a whole via the #gov-new-proposal channel for maximum visibility.

Voting Measures:

1. The voting system is simple token-based, weighted by number of tokens held by a DAO member. Voting occurs with two weights of voting: UMAMI tokens = 1 Vote, while mUMAMI and cmUMAMI tokens = 5 votes. This is to prevent abuse and incentivize those who have locked their tokens. 2. After a proposal is made, there will be a 72 hour window for discussion and voting from the time of proposal. 3. Discussion are to be held publicly on a Discourse board maintained by the DAO. 4. Voting takes place on Snapshot. 5. 10% quorum is required for a proposal to pass. Note : Members may delegate their votes to an address of their choosing. They are under no obligation to do so and this is completely voluntary. Members may do so using https://snapshot.org/#/delegate and limiting the delegation to the Umami space.*

In general, a proposal that passes should be operationalized within 72 hours -- unless tied to a specific date or event, a future goal, or a longer technical process. As needed, working groups can be formed of contributors to accelerate the implementation of a change or to effectuate a proposal.

Governance Support Team This proposes the creation of a five (5) member non-compensated, community-sourced support team to manage and improve the functionality and operations of the Umami Finance DAO's Governance Operations. Upon approval of this proposal, members of the Umami DAO will have 168 hours to nominate themselves or others in the Discourse thread. At the end of this period, the nominees will be tabulated and input into a new voting proposal. Voting will occur on a simple wallet-based voting system (i.e. one vote per wallet) with ranked-choice voting for preferred candidates on the standard 72 hour timeline of discussion and voting. The Governance Support team would engage in similar elections once per financial quarter (three months) to affirm existing members or add new ones as the community desires. Outside of a regular term, members of the community can enact a vote of No Confidence against any individual member of the team. This will trigger a new proposal with the standard 72 hour window for discussion and voting. The Governance Support team would be responsible for the maintenance and operations of Snapshot, Discourse, any future DAO tooling platform or application stack, for preparing and formatting new Snapshot vote proposals on behalf of the community, and for moderating and guiding discussions. While members of the Governance Support team may create individual proposals, unless specifically noted (i.e. with a formal heading asserting the team's support), these individual proposals are not sponsored or endorsed by the Governance Support team.