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Governance Phase 1

Key Design Choices

Component of feature
Design of Phase 1
NEPRIDAO Treasury
Gnosis Safe
Governance
Gnosis Snapshot
Governance Token
NEP, instance of COMP token
Gnosis Safe Owner
Multi-sig
Gnosis Snapshot Space Owner
Multi-sig
Delegated Voting
Delegate All only
NEP holders must delegate before voting (can delegate to themselves)

NEPRIDAO Treasury (Gnosis Safe)

NEPRIDAO will use Gnosis Safe to store treasury assets. Gnosis Safe is commonly used by crypto projects for multi-sig control over an Ethereum address.

Governance Module (Gnosis Snapshot)

Gnosis Snapshot is an off-chain vote aggregation platform. Snapshot supports off-chain governance for many industry-leading blockchain and DeFi projects such as Balancer, Yearn Finance, SushiSwap, Uniswap, Bancor, The Graph, and Aave. We chose Snapshot as an off-chain vote aggregation platform to make governance simple and transparent for our users. It is a tried and true solution with a great user interface and user experience.
Snapshot-based governance, is commonly referred to as "soft" governance as the result of the vote is not automatically implemented -- it requires a development and operations team to perform subsequent actions and implementation of changes via a multi-sig.

Governance Token (NEP)

NEPRIDAO’s governance token, NEP, will be an instance of Compound Finance’s governance token COMP. This has been selected instead of a standard ERC-20 token, as it supports 1) delegated voting, and 2) off-chain vote aggregation with the potential of moving to on-chain governance at a later phase.

Other Governance Discussions

In the community Discord and Forum, there will be a separate channel to discuss ideas around grants, token swaps, protocol roadmap, and governance.
Ideas that garner enough community support can be submitted for voting. A community member may draft a soft proposal for Snapshot that leads to an official community vote. Such proposals act as a “temperature test” or a poll, but do not guarantee implementation. The idea needs to be adopted by a development team, with finalized code audited and submitted, then deployed by the multi-sig administrators.

Delegated Voting

NEP holders cannot vote or create proposals until they delegate their voting rights to an address. Delegation will be given to one address at a time, including the holder’s own address.
Note that delegation does not lock or transfer tokens. If an isolated delegatee wallet is stolen, compromised, or interacts with the incorrect smart contract, this will not directly result in the loss of NEP tokens, and the NEP holder can delegate to another address.

Multi-Sig Administrators

In Phase 1, NEPRIDAO treasury (Gnosis Safe) and Snapshot Space will be administered by a multi-sig wallet.
We will look to community suggestions to distribute the signing keys more widely (for example 6 of 12 signers). Proposed changes to multi-sig signers or rules will be submitted via Snapshot proposal and voting process.

Proposal and Voting Parameters

Initial Key Settings

Item
Phase 1 Parameter
Snapshot Strategy
1 NEP = 1 Vote Weight
Proposal Threshold
100,000 NEP
Vote Duration
Minimum 7 days
Vote Threshold
10,000,000 NEP (1.0% of token supply)
Note:
  • The above settings will be managed by the NEPRIDAO Snapshot Space administrators, who will be nominated by the nepridao.eth dns multi-sig owners.
  • In Phase 1 Snapshot, the above parameters will be policies and not enforced by code. The NEPRIDAO affiliated R&D centers, and multi-sig administrators will not recognize any proposals that do not comply with the above settings.
  • The above settings can be changed. We will discuss with the community on our forum, and submit a proposal vote prior to making any changes.

Definitions

Snapshot Strategy Defines the vote weight of each token. Our initial setting is 1 NEP = 1 vote weight, so each NEP has equal voting power. Future strategies may include: allocating vote weight to xNEP or NEP-ETH LP tokens to enable NEP holders who have staked, wrapped, or provided liquidity to retain voting power.
Proposal Threshold "Proposal Threshold" is typically defined as the number of votes required to create a proposal. In NEPRIDAO Snapshot Space this will be done through a visual filter, to only display proposals from users who have at least the threshold number of NEP tokens delegated to their address.
Vote Duration The length of time between voting start and voting end.
Vote Threshold The minimum number vote weight (NEP tokens) will require to vote on a proposal. If this minimum is not met, the vote will be unsuccessful even if the majority of voters voted yes.