DAO Governance
The PropChain DAO (Decentralized Autonomous Organization) forms the backbone of the ecosystem's governance structure, empowering token holders and community participants to actively shape the future of PropChain. Leveraging blockchain-enabled transparency and decentralized decision-making processes, the DAO ensures that ecosystem governance is truly representative, efficient, and resilient.
The Propchain Ecosystem consists of 2 Modules.
Both Modules work hand in hand to combine what is proposed in the best interest of the ecosystem to what is feasible for the ecosystem to develop.
The Propchain Governance Module
Responsible for decentralized decisions and controlling of the ecosystem.
The Governance Module consists of:
Propchain Foundation: Responsible for overarching strategic governance, regulatory adherence, and financial oversight.
PropchainDAO: Community-led decision-making body, utilizing decentralized governance mechanisms to enable direct participation from token holders.
The Propchain Utility Module
Responsible for creating operational utility and ecosystem functionality.
The Utility Module consists of:
Governance Process
Governance is the core of decentralization's driving force. Propchain’s governance model utilizes a token-based voting system to involve its community in key operational decision-making processes, ensuring decisions reflect the collective will of the PropchainDAO community, promoting transparency and inclusivity.
Voting Process
PropchainDAO utilizes a straightforward voting system based on the staking mechanism, enhancing community participation and governance involvement.
Step 1: Stake $PROPC
Before engaging in governance activities, users must stake their $PROPC tokens through the official Propchain dApp (minimum 1,000 tokens).
Detailed instructions will be available soon.
Step 2: Discussion Forum
Proposals begin within community forums, like the exclusive 'PropchainDAO Telegram group', ensuring robust discussions before progressing to formal voting.
Detailed instructions on how to use the Discussion Forum will be available soon.
Step 3: Voting on Snapshot
After community consensus, proposals are created on Snapshot, allowing staked users to connect their wallets and cast votes based on calculated Voting Power.
Voting Power
An important factor to consider decentralization and transparency within decision making is to understand your Voting Power. In PropchainDAO, the Voting Power is decided purely based on the Amount Staked and the Staking Pool (or Duration) chosen.
What is Voting Power?
Voting Power determines each user's weight in governance proposals, calculated solely based on amount staked and chosen staking duration, reflecting their commitment to ecosystem governance.
PropchainDAO has a special formula to calculate the Voting Power:
According to this formula,
Users staking in longer-term pools receive proportionally greater Voting Power.
Users preferring shorter staking durations may increase their Voting Power proportionally by staking larger amounts.
An example:
User A who stakes 1000 PROPC in the short term pool will receive 250 Voting Power. (1000 * 0.5/2). Where 0.5 is Short Term pool duration of 6 months or half a year, and 2 is the maximum number of years anyone can stake for.
On the other hand, User B who stakes 1000 PROPC in the long term pool will receive 1000 Voting Power. (1000 * 2/2). Where 2 is Long Term pool duration of 2 years, and 2 is the maximum number of years anyone can stake for.
We can conclude that User B has a higher Voting Power and can contribute significantly higher towards their favored choices within Proposal.
Special Scenarios:
If user who have staked in multiple pools through different Staking events, Voting Powers for each one will calculated and added together.
Also, it does not matter how far the Staked duration has been completed, as long as the Staking event is valid on the Staking Wallet, the voting powers will be emitted accordingly.
With this enhanced Staking mechanism, user commitment is priority and we recommend every user to stake responsibly.
Governance Roadmap:
The governance roadmap clearly outlines strategic milestones aimed at progressively decentralizing governance:
Initial Establishment: Formation of foundational governance protocols and structures.
Community Empowerment: Enhanced tools and resources for proposal submissions and voting.
Decentralization Advancement: Gradual transition to fully decentralized governance and increased autonomy of the DAO.
Continuous Optimization: Regular revisions and improvements to governance frameworks based on community feedback.
Community Involvement:
Regular governance meetings, proposal workshops, and community forums actively encourage stakeholder engagement.
Open dialogue ensures governance decisions reflect comprehensive community consensus.
Transparency and Accountability:
Governance actions from proposal submission to execution are transparently documented on-chain, providing verifiable, immutable records accessible to all stakeholders.
Routine communication from the Foundation provides comprehensive updates on governance outcomes and ecosystem developments.
Continuous Improvement:
Governance processes and frameworks are continually assessed and refined, responsive to stakeholder feedback and evolving regulatory landscapes.
Community feedback mechanisms ensure governance remains adaptive, efficient, and aligned with stakeholder needs.
The DAO governance structure within PropChain represents a comprehensive, robust, and operationally compliant approach to decentralized ecosystem management, significantly enhancing community participation, operational transparency, and strategic alignment with ecosystem growth and innovation objectives.
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