How Decentraland DAO governance works
Examining the three-stage system for proposal submissions
How does a proposal submitted to the Decentraland DAO pass?
The Decentraland DAO is precisely that, a decentralized autonomous organization where any member can submit a proposal. However, this comes with one drawback. Spam and poor-quality proposals inundated Decentraland DAO until Matimio put forward a proposal in late 2021.
Matimio suggested a three-tiered system that the DAO subsequently adopted. His proposal outlined the basis for what has become the accepted procedure for all proposals. First comes the Pre-Proposal Poll, next the Draft Proposal, and finally, the Binding Governance Proposal.
This system has increased the quality of proposals, allowed better thought regarding the long-term implication of submissions, and represented a significant shift in the methodology of the DAO, which before this system passed decisions weekly. Now each proposal must advance through these three stages, with each tier requiring progressively more participation.
Pre-Proposal Poll. This stage effectively tests the sentiment of the DAO towards the proposal in question. At this stage, a formal draft is optional, and the proposal can come in the form of a simple question. To pass to the Draft Proposal stage the proposal must receive a simple majority, a 500,000 voting power threshold must be met, and it has a five-day voting period.
Draft Proposal. At this stage, a formalized proposal must be presented, and the community examines it and considers its future implications. At this stage, a proposal can be amended and submitted if it fails to pass, but only once. For a Draft Proposal to pass, it must receive a simple majority, cross a 1 million voting power threshold, and it has a one-week voting period.
Binding Governance Proposal. The final stage will see the proposal become binding. During this period only recognized members of the community can submit governance proposals, which reduces mercenary proposals, and means only ‘true’ Decentraland DAO members- those who believe in the mission and have skin in the game- can submit these proposals. The criteria for Binding Governance Proposals are a simple majority, a 6 million voting power threshold, and a two-week voting period.
This proposal voting and adoption method massively increased the long-term efficacy of the DAO.
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