SHNIP-03: Governance Enhancement

Summary

The aim of this proposal is to improve the ShineDAO governance by redefining Committee’s role (requirements, election process, responsibilities, and veto) along with an improved governance proposal creation and voting process.

Motivation

DAO governance often suffers from a lack of participation and community context. Many trivial governance actions go through a lengthy process of proposing a draft, feedback window, snapshot vote, and implementation. This means over 8 days of governance to implement insignificant change.

The existing governance proposals vary widely in terms of complexity and importance. An ideal governance structure should keep some trivial decisions closest to the elected members of the DAO (Committee) that have the most context while enforcing transparency.

ShineDAO community should through veSHN token keep key governance functions with the established process that gives the community a clear way to create, vote, and implement proposals while having the power to challenge Committee’s decisions of unclear value or risk, relying on negative consent through veto proposal.

Details

Committee

The Committee is 3 elected members of the ShineDAO community controlling 2/3 multisig, own additional responsibility, and obtain flexibility over certain decisions (described below) while acting in the best interest of the DAO.

Since the existing current committee role did not have any significant additional reposnisbnility, besides the benefit of higher allocation per person, we suggest renaming it to Tier 4.

Requirements:

  • Must have >400k veSHN with lock longer than 6 months from the last date of elections
  • Must nominate themselves under the Committee Candidates forum post (5-day nomination and discussion period)
  • Must be willing to take on responsibility for the whole epoch (6 months)

Responsibility:

  • Control over speed budged pool payout (keeping same max. available budget as discussed in [Proposal] Lead Contributor Requirements, Responsibilities & Compensation @ShineDAO) with a focus on sustainability and transparancy
  • Posting approved spendings in the #:money_with_wings: payout Discord channel 24h before they are being distributed
  • Treasury rebalancing with proper risk management and ensuring longevity in any market condition
  • Posting rebalancing plans in #:bank: treasury Discord channel 24h before rebalance (Committee reserves the right to move/unstake assets immediately in circumstances of extreme risk)
  • Accepting people in the talent pool (Frens Network)
  • Accepting partnerships that don’t require funding (other than Speed Budget Pool) in the best interest of ShineDAO

ShineDAO Community

Community members that buy SHN tokens and stake them with a time lock in veSHN contract will besides SEED access and reward distribution through (SHN buybacks + project tokens) obtain governance power over key governance functions.

Requirements:

  • Must stake and lock their SHN in veSHN contract, to be eligible to participate in governance
  • Must hold >15k veSHN to complete collab.land verification and access to closed servers in the #join channel in ShineDAO Discord server
  • Must hold >15k veSHN to submit a proposal (or veto on Committee actions) in ShineDAO Snapshot governance

Responsibility:

  • Evaluating and accepting projects for SEED
  • Evaluating and accepting projects for SWAP
  • Controlling distribution parameters
  • Approval of Speed Budget Pool monthly allocation
  • Approval and grants for other initiatives
  • Election of Committee members
  • Following Committee’s posts in dedicated channels
  • Creating general proposals
  • Creating negative consent (veto) proposals

Proposal Creation Process

  • All proposals must be posted to the governance forum in the #proposals section and have a 5 day discussion period prior to voting
  • All proposals must start with:
    • SHNIP-## for governance and protocol proposals
    • SEED-## for proposals and key terms for a project raising funds through ShineDAO
    • SWAP-## for strategic partnerships, execution support, and key terms that involve swapping SHN
    • GRANT-## for funding initiatives that have a positive impact on SHN and ShineDAO
    • VETO-## for removing committee members or challenging their actions
  • Forum posts of proposals should include a forum vote for feedback and signaling
  • Final proposals must be posted on this forum under the SHNIP category
  • Links to the Snapshot vote need to be included on the same thread
  • Include all relevant information for the community to be able to make an informed decision

Proposal Voting Process

  • Minimum period of 3 days
  • Simple majority (50%+1) wins the vote
  • Quorum (min. participation) 5M veSHN

Signal:

  • Approve
  • Reject

0 voters

4 Likes

Looks good.

Formalizing this makes sense at this point.

2 Likes

Great proposal! :+1:

Formal elections would do the DAO a ton of good by motivating elected individuals to strive harder for the success of the DAO.

The forum will also see more activity.

This proposal has my approval! :trophy:

2 Likes

I think this is a very good start, only thing I can think that would make this better in the future™ would be for the any components of this that can happen on chain, should be done on chain (and snapshot could be used to gauge interest for an onchain proposal).

1 Like

That makes sense. The plan is to definitely move everything on-chain. We have already CMS built for SEED, so that could happen relatively soon.

1 Like

Link to Snapshot proposal: Snapshot