This document is a suggested process for developing and advancing ShapeShift Community Proposals. It is a living document intended to be owned, modified and enforced by the overall community.
Governance process tl;dr:
- Post idea on the forum and get feedback from the community. Use this feedback to refine your proposal.
- Once your proposal following the template is drafted and ready to move forward, post it in the Proposal Discussion category for final feedback and include a For/Against poll gauge sentiment.
- After 5 days in the Proposal Discussion category, if the feedback is overall positive and confidence that the proposal will pass is high, make your proposal to the DAO
Before we get started, please note that if you have support questions, our Discord is the place to ask. Comments not related to the proposal in this thread will be removed:
Note: All meaningful governance discussion should take place on this forum to ensure the community has full transparency
The ShapeShift governance process is the act of proposing, discussing, and deciding initiatives for the ShapeShift DAO. As currently scoped, workstreams define topics, topics lead to proposals, and proposals are voted on by the community.
For making proposals to governance, users should submit an ideation post on Boardroom and provide at least 5 days for comment before moving to Snapshot as defined below.
We have the following workstreams proposed, and a few topics that have emerged around them:
Progressive Decentralization: Transitioning responsibilities and ownership of all ShapeShift operations to the DAO.
Partnerships: Developing mutually-beneficial partnerships and affiliate revenue opportunities with aligned DAOs and products.
Product: Planning the optimal feature roadmap for achieving ShapeShift’s vision as the open-source interface to the decentralized universe.
Development: Planning and executing the open-sourcing of all ShapeShift code and infrastructure. Developing new features, fixing bugs, and optimizing performance of ShapeShift’s web and mobile applications.
FOX Tokenomics: Evolving and enhancing FOX token utility and value accrual.
Marketing & Growth: Executing campaigns focused on growing the ShapeShift ecosystem.
Operations: Managing and optimizing ShapeShift’s operational processes.
Special Projects: Propose new workstreams to be added.
If you have an idea that doesn’t fit into any of the categories above, we encourage you to suggest a new workstream.
Once the community has decided a workstream discussion is ready to be formalized, they should draft a proposal and share it in the Proposal Discussion category for feedback. (previously we were using Ideation on Boardroom for this, but we used it so much we broke it so until it’s fixed we’re using the forum)
Any formal proposal must:
- be live in the Proposal Discussion category for at least 5 days
- have more upvotes than downvotes
- Follow the ShapeShift Proposal Template
Otherwise, it will not be considered a valid proposal and will be removed.
Once a valid proposal has been in Boardroom for at least 5 days and has more upvotes than downvotes, formal voting can take place.
Ratifying proposals - Voting is powered by Snapshot and accessible on Boardroom. SnapShot and Boardroom enable foxes to vote on proposals by signing messages (free) rather than sending transactions (costly).
ShapeShift DAO currently practices Liquid Democracy, which means voting power is based on FOX held in wallets (or certain liquidity pools) as well as FOX delegated to the address used to vote. 1 FOX = 1 vote.
- FOX held in wallet
- FOX delegated to the address voting (Snapshot)
- FOX deposited in the FOX/ETH Liquidity Pool on Uniswap v2, including LP tokens staked for farming
Minimum voting period - 72 hours
Quorum: A minimum of 4,000,000 FOX must participate in the vote for it to be considered ratified.
In some cases, especially early on in governance, it may be very difficult to reach quorum. To facilitate better governance and avoid burning out participants, the idea of soft quorum was adopted. Soft quorum means that if a proposal would almost certainly have passed had quorum been reached, the proposal will be considered ratified.
For votes that do not reach quorum, assume that 70% of the votes necessary to achieve quorum would be against the proposal. If this would still result in a majority of votes being in favor of the proposal, the proposal can be considered passed.
Suppose a proposal gets 2,999,500 votes in favor of Option A and 500 votes in favor of Option B. We add 700,000 votes to Option B and 300,000 votes to Option A to hit quorum and find that the vote is still strongly in favor of Option A. Soft quorum is hit and the proposal moves forward.
From time to time there may be conflicting proposals, to avoid issues, the 5 day window above can also serve as time for anyone to list their preferred alternative option on the forum. Each proposal on an associate topic will have a [TOPIC] block placed in its title.
After that time, a vote will be put forward including all options available to move forward with. This will ensure that everyone has the ability to surface their preferences while keeping decision timelines reasonably short.
Remember, this is a living document and is only meant to act as a starting point for governance. If there’s anything you want to add or anything that’s unclear please suggest it below or even as a separate proposal!