FOX Governance Process

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. The FOX Governance process was last updated on March 14, 2022 in accordance with SCP-60.

Governance process tl;dr:

1. Incubation - 3 day minimum: Post your idea in the relevant Workstream on the forum to obtain feedback from the community, and drop a link in the #incubation channel in Discord to spread awareness. No specific template is needed.
2. Ideation - 5 day minimum: Once incubation post has been live in the forum for 3 days, post a draft proposal in Proposal Discussion. Proposals must follow this template and include a yes or no poll. Proposals may continue to be refined based on community feedback during this stage.
3. Voting - 3 day minimum, 60 day maximum: After at least 5 days in Ideation, if a draft proposal has more upvotes than downvotes, it can be posted to Boardroom for official vote.

Detailed process:

1. Incubation:

  • Post your idea in forum.shapeshift.com
  • Post under appropriate category (listed at the bottom of this proposal)
  • No specific format required
  • Consider posting a link to the forum discussion in the #incubation channel in Discord
  • Intent is to engage the community
  • Timeline: 3 days/72 hours
  • No other requirement to move to Ideation

2. Ideation:

  • Post a draft proposal in Boardroom Ideation (Note: this will take place on the forum until Ideation functionality on Boardroom has returned)
  • Post a draft poposal in Proposal discussion category
  • ShapeShift Community Proposal (SCP) format or Workstream Proposal format must be used
  • SCP number must be included in title (SCP # should be 1 greater than the most recent SCP posted in Proposal Discussion
  • Voting power is calculated using the strategies defined on SnapShot, explained here (while ideation is still in the forum, each Forum user has one vote)
  • Include link to the Incubation post
  • Must include poll - with three options:
    • For/Yes with no amendments/changes
    • For/Yes with amendments/changes
    • Against/No
  • Timeline: 5 days minimum
  • Proposal may move forward if the majority votes in favor after timeline specified above

3. Voting:

  • Post your finalized proposal to SnapShot following instructions found here. Alternatively, you can use Boardroom, which is another interface to SnapShot.
  • Address must hold 100 FOX to create a proposal.
  • Voting is available on both Snapshot and Boardroom
  • Voting power is calculated using the strategies defined on SnapShot, explained here
  • Correct SCP # is included in the title
  • ShapeShift Community Proposal (SCP) format or Workstream Proposal format must be used
  • Links to the Incubation and Ideation posts are included
  • For proposals over 6400 characters (the current SnapShot limit), use https://foxpin.xyz/ and include link to IPFS pin.
  • Timeline: 3 day minimum, 60 day maximum

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.

Quorum: A minimum of 4,000,000 FOX must participate in the vote for it to be considered ratified.

Soft Quorum: 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. See Soft Quorum Calculator

Other items of note

  • Any proposals not following governance process will be removed.
  • All meaningful governance discussion should take place on this forum to ensure the community has full transparency.
  • As FOX continues to expand across DeFi and across chains, the SnapShot voting strategy will be updated to grant 1 vote for 1 FOX wherever feasible.
  • Remember, this is a living document. If there’s anything you want to add or anything that’s unclear, please suggest it below or make an addendum proposal!

Conflicting Votes

From time to time there may be conflicting proposals. To avoid issues, the Ideation phase 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 formal proposal will be put forward including all options available to move forward with that received majority support in Ideation. This will ensure that everyone has the ability to surface their preferences while keeping decision timelines reasonably short.

Proposal Execution

If your proposal requires transaction(s) to be executed from the DAO’s treasury, there are currently two options available:

Manual Multisig Execution (fast and free) : To have your transactions executed by the DAO’s multisig, post a message in the #Treasury channel in Discord with the following details:

  1. Desired date of execution
  2. Type of transaction to be executed (transfer or contract interaction)
  3. If transfer: amount, asset, recipient (ie. 1000, FOX, vitalik.eth)
  4. If contract interaction: contract to interact with, call, and inputs (ie. eth:0xE2aE37B8077CD3BC7ef1C6580f6dc93673078A01 (Olympus Bond Treasury), withdraw, _token(address): eth:0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48, _destination(address): eth:0x90A48D5CF7343B08dA12E067680B4C6dbfE551Be, _amount(uint256): 830168207423)

If you need help figuring out the details of the transaction(s) necessary to execute in order to enact your proposal, feel free to post a question in the #Treasury channel.

Automatic SafeSnap Execution (slower and costs more gas) : To have your transaction executed via SafeSnap, you must first include the details of the transaction(s) when creating the proposal on SnapShot. Then, once your proposal has passed with Quorum (soft quorum will not qualify for automatic execution and must be executed manually), you will see a button on SnapShot to trigger a question on Reality.eth, an oracle that uses game theory and bonded FOX to bring the results of off-chain SnapShot votes on chain. The resulting Reality.eth question asks if (1) the linked Snapshot proposal passed, (2) did the proposal include the payload, and (3) does the payload do what the proposal describes. If a question on Reality.eth is successfully resolved, the Reality.eth Safe Module installed on the DAO’s Treasury enables the transactions included in the proposal to be executed via SnapShot’s UI, bypassing the DAO’s multisig. More information on SafeSnap

13 Likes

Excellent, thanks for laying this out Willy! Look forward to contributing to governance via this process with everyone else!

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@willy I don’t see an Operations workstream in the main forum, but I see it is listed here. Is this something that still needs to be officially proposed to be added as a workstream?

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Whoopsies, I think I just forgot to create the workstream for this :sweat_smile: I’ll add it now and please feel free to define it @Tyler

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Here you are ser Operations - ShapeShift DAO

1 Like

Nifty Soft Quorum calculator: Soft quorum calculator - Google Sheets

Plug in votes for and against to see if a proposal will pass under Soft Quorum.

1 Like