Concepts & Definitions

OptSwap DAO

OptSwap Decentralized Autonomous Organization (DAO) is an entity that is comprised of the Core Smart Contracts and its members who share a common mission and act in the best interest of the entity.

Membership is attained by holding free-floating Governance Tokens issued by the DAO. Voting rights are granted to members who Vote-Escrow (i. e. lock) their governance tokens for a set period of time.

Governance Contract

OptSwapDAOGovernance is the main contract which controls the Treasury (approve/transfer) and has the ability to deploy new OptSwaps (DEXes & AMMs) and modify the parameters thereof; manage the MetaOracle; create Fundraising Rounds & Airdrops and issue new Commercial Papers.

The governance contract does not and cannot control the funds in the OptSwap DEXes & AMMs which are standalone and entirely non-custodial. The only permissible parameter changes are the various fees, rewards, allowed settlement types and settlement periods.

Governance Proposals

Any actions proposed to be performed by the DAO are recorded on-chain as Governance Proposals. DAO members with voting rights may vote for or against the execution of the proposals. There exist several Proposal Types which cover every aspect of the functioning of the DAO. Only proposals which pass the quorum and voting requirements are allowed to be executed.

Governance Tokens (OS*)

OptSwap DAO issues Governance Tokens (OS*) on various blockchain networks which grants membership to the DAO on that particular network. The asterisk (*) suffix acts as a placeholder for the abbreviated network name, e. g. "OptSwap Ethereum" (OSE). OS* tokens are free-floating and can be bought or sold at any time.

Vote-Escrowed Governance Tokens (veOS*)

OS* tokens can be vote-escrowed (i. e. locked) by members to attain voting rights and to participate in governance proposals and staking programs. Escrowing tokens for longer durations, up to a maximum of four (4) years, increases the voting power attained by members. Vote-Escrowed tokens are non-transferrable and cannot be unlocked or sold before the escrow period is complete.

Voting

All governance proposals can be voted upon by DAO members with voting rights until the voting period completes. Votes are registered on-chain as a simple "Yes" or "No" entry with the number of Vote-Escrowed tokens in favor of or against the proposal. Members may also choose to abstain by not voting. All votes are registered immediately and are open to public view. Votes can be modified or withdrawn as long as the voting period is still open.

Quorum

The Quorum is the minimum voter turnout, measured as a percentage of the total supply of vote-escrowed tokens, required to make the proceedings of the proposal and vote be deemed valid and executable. For OptSwap DAO, it must be a minimum of 67% (i. e. more than 2/3rds voter turnout) although it can be set even higher for specific one-off proposals by the proposer.

Execution Timelock Period

A proposal that has passed the quorum and vote requirements enters into a timelock period after the end of voting. Proposals can be executed only after the timelock period has passed. For OptSwap DAO, it must be a minimum of 30 minutes although it can be set higher for specific one-off proposals by the proposer.

Proposal Execution

Proposals that have passed and have had their timelock periods expire can finally be executed on-chain. The effects of executing the proposal are immediate and irreversible.

Execution Grace Period

All proposals must be executed within the Execution Grace Period of one (1) day or 24 hours. If the proposal was not executed with the grace period for any reason, it goes into the "Execution Failed" status and can no longer be processed. A new proposal will need to be created with the same parameters and voted upon again to achieve the desired outcomes.