VIP-2: ValleyDAO Governance Framework

Through voting on proposals submitted by the community, ValleyDAO members can exercise full control over all governance decisions. The proposals can be of different types and will adhere to a specific process. The number of GROW tokens that a member holds determines their voting power.

Proposal Categories

Important decisions that require collaboration usually need on-chain voting. Some examples of such decisions are significant monetary allocation for specific projects, choosing projects for financial support, and handling assigned working group members and leaders. Proposals are classified into categories for efficient management.

Category A:

• Proposals that will undergo all three phases of voting.

• Examples include project funding, spinouts, and creation of legal entities.

Category B:

• Proposals that will undergo voting on Discord by core members, working group leads, and relevant working group members.

• Examples include working group restructuring.

Category C:

• Proposals that will undergo voting on Discord by core members and working group leads.

• Examples include software subscriptions and minor strategic decisions.

Proposal Phases

Phase 1: Discord-based discussion and voting

Phase 2: Discourse-based discussion and voting

Phase 3: Snapshot vote

Phase 1:

• Description: This is an informal discussion phase that happens on Discord, where ValleyDAO members can discuss potential proposals and gather feedback from the community. To initiate a proposal in Phase 1, a member can post their idea on Discord after discussing it with other DAO members on calls and other platforms.

• Duration: determined on a case-by-case basis by relevant DAO members, both core and non-core.

• Passing requirement: at least 10 members must signal positive support for a Phase 1 proposal to successfully pass to Phase 2.

Phase 2:

• Description: Phase 2 is a Discourse-based formal proposal phase in the ValleyDAO governance process. In this phase, proposals must include a single-choice poll with options for "Agree", "Needs revision" (comment required), and "Disagree" (comment encouraged). The proposal author is responsible for incorporating comments from "Needs revision" votes where valid. If a commenting author's comment is fully resolved, they are supposed to change their vote from "Needs revision" to "Agree". Additionally, a mandatory 7-day waiting period for Phase 2 proposals must be observed after the last significant change to the proposal. The core majority will decide whether a change qualifies as significant or not. Examples of significant changes include those that affect ValleyDAO's public image, and those that revise the decision-making power and spending.

• Duration: 7 days, barring any significant revisions to the document.

• Passing requirement: For proposals to successfully pass from Phase 2 to Phase 3, they must gather support from two working group leads and at least 10 DAO members. If a Phase 2 proposal does not reach quorum and/or does not receive enough confirmatory votes 3 months after it is first posted, it is voided.

Phase 3:

• Description: Proposals that pass the Phase 2 forum poll are locked on Discourse and moved to Snapshot, which is a popular gasless and off-chain voting platform.

• Duration: 7 days.

• Passing requirement: proposals must receive a majority token-based affirmative vote with 10% quorum of circulating token supply.