Open DeFi Improvement Proposals (ODIPs)

Open DeFi DAO is a dynamic entity that will evolve over time. This post provides an overview of the current Open DeFi DAO governance process.

To learn more about the vision of Open DeFi DAO, you can read the blog post announcing our DAO. Continue reading below for the governance process summary.

Governance Process

The Open DeFi DAO governance process will initially be conducted using the Open DeFi DAO section of the Open DeFi Forum. For a proposal to be accepted, it must successfully pass through three phases:

Phase

Content

Duration

Passing Requirements

Phase 1 Ideation

Post created on the Open DeFi Forum in the Open DeFi DAO category, and ensuing discussion on the forum

Open-ended

For proposals to successfully pass from Phase 1 to Phase 2, there is no formal requirement. However, if a Phase 1 proposal discussion fails to garner momentum from the community, it is unlikely to become a successful proposal.

Phase 2 Specification

Open DeFi Improvement Proposal (ODIP) post created

5 days

For proposals to successfully pass from Phase 2 to Phase 3, there must be one outcome with a relative majority of votes on the forum poll. If the relative majority of votes on the forum poll indicates the result Make no changes, the proposal will not pass to Phase 3.

Phase 3 Consensus

Open DeFi Improvement Proposal (ODIP) post refined - Open DeFi DAO Snapshot poll

7 days

For proposals to be accepted in this final phase, there must be one outcome with a relative majority of tokens used for signalling on the Open DeFi DAO Snapshot poll accompanied by a yes-voting quorum of a minimum of 4%[1] of the circulating supply of Open DeFi governance tokens. If the relative majority of tokens used in signalling on the Snapshot poll indicates the result Make no changes, the proposal will not be accepted and considered closed.

Now let’s dive deeper into each phase.

Phase 1: Ideation

This phase facilitates an initial, informal discussion on Open DeFi Forum regarding potential proposals to Open DeFi DAO. You can initiate a proposal in Phase 1 by posting your idea in the Open DeFi DAO category with the phase-1 tag. This phase allows proposals to gather community insight for refinement before opening a formal poll. In this phase supporting data/evidence is gathered/generated and posted along with the idea itself. This evidence will be used in decision making in the following phases.

Duration: Open-ended

Passing Requirement: For proposals to successfully pass from Phase 1 to Phase 2, there is no formal requirement. However, if a Phase 1 proposal discussion fails to garner momentum from the community, it is unlikely to become a successful proposal.

Phase 2: Specification

This phase requires proposals to be posted in the Open DeFi DAO category using the Open DeFi Improvement Proposal (ODIP) template. You can create an Open DeFi Improvement Proposal (ODIP) easily by adding the ODIP subcategory, after which your draft post will automatically be populated by an ODIP template for you to fill in. You can move a proposal to Phase 2 by posting the ODIP with the phase-2 tag.

The ODIP template requires all proposals to speak to applicable fields, such as a Simple Summary, Abstract, Motivation, Specification,Supporting Evidence, and Implementation. In addition to these fields, Phase 2 proposals must also include a 5-day forum poll on the proposal outcome, and it must include the option Make no changes.

Duration: 5 days

Passing Requirement: For proposals to successfully pass from Phase 2 to Phase 3, there must be one outcome with a relative majority of votes on the forum poll. If the relative majority of votes on the forum poll indicates the result Make no changes, the proposal will not pass to Phase 3.

Phase 3: Consensus

This phase opens proposals to two signalling methods for token holders. You can move a proposal to Phase 3 by editing the ODIP post from the previous phase to reflect the forum poll result that received a relative majority of votes and by updating the proposal’s tag to phase-3. This serves to refine the proposal for the final phase.

Open DeFi DAO Snapshot poll: A Open DeFi DAO Snapshot poll must be created that contains the proposal text as well as a link to the ODIP post on the Open DeFi Forum, and it must include the option Make no changes. In order to be eligible to signal in the poll, community members must hold a minimum of 1 Open DeFi governance tokens.

Both a link to the corresponding Open DeFi DAO Snapshot poll and the Open DeFi Impact app must be edited into the ODIP post.

Duration: 7 days

Passing Requirement: For proposals to be accepted in this final phase, there must be one outcome with a relative majority of Open DeFi governance tokens used for signaling on the Open DeFi DAO Snapshot poll accompanied by a yes-voting quorum of a minimum of 4%[1] of the circulating supply of Open DeFi governance tokens. If the relative majority of token holders used in signaling on the Snapshot poll indicates the result Make no changes, the proposal will not be accepted and considered closed.Upon initial publication, for proposals to be accepted in the final phase, there had to be one outcome with a relative majority of votes used for signaling on the Open DeFi DAO Snapshot poll accompanied by a quorum of a minimum of 10% of the circulating supply of Open DeFi governance tokens.