A Shutter DAO Governance Process Document

A Shutter DAO Governance Process Document

Version 1.0.1

This document outlines the guidelines for a Shutter DAO Governance Process. This process can be implemented by any Shutter DAO deployed in good faith. A Shutter DAO should ensure that they implement a governance process specific to their needs and requirements.

This process has been streamlined for a lean, agile, more efficient, and flexible process that should be a better fit for an early-stage (Shutter) DAO.

What is a Shutter DAO?

A DAO has always been at the core of the vision of Shutter’s value proposition. It is an integral part of how the system is designed to function, especially concerning a transparent and trustworthy Keyper Set Selection Process and Keyper Set Management.

Beyond its core functions, a DAO represents a major general step toward autonomy and decentralization.

A comprehensive blueprint and guide for initiating a DAO for the Shutter Network was provided to the community. It provides detailed instructions and code, which can either be customized or used as is to launch a Shutter DAO.

Each DAO created in this manner will be a genuine, on-chain entity, relying heavily on the active governance participation of its community.

What is Shutter DAO 0x36?

A deployment of a Shutter DAO, which adheres to the specifications proposed in the blueprint, has now become known as Shutter DAO 0x36. Shutter DAO 0x36 may be considered by the community as a canonical Shutter DAO deployment.

The blueprint proposed that a Shutter DAO would adopt the Fractal on-chain tool for its overall governance structure. You can now find Shutter DAO 0x36 on Fractal.

A new section called Shutter DAO has been added to the Shutter Forum. This section will host discussions, proposals, votes, and templates associated with canonical Shutter DAOs, including Shutter DAO 0x36.

Purpose of a Shutter DAO Governance Process

New Shutter DAOs will likely require more efficient, streamlined, and flexible processes than more mature Shutter DAOs. This Shutter DAO Governance Process is designed to guide and streamline decision-making within an early-stage Shutter DAO. This process ensures a lean and systematic approach to evaluating and implementing proposals, empowering SHU token holders to impact a DAO’s direction. The aim is to foster a governance environment that is fair, efficient, and transparent, increasing the likelihood of success for Shutter DAO initiatives.

Proposal workflow

A democratic voting system drives proposals within a Shutter DAO. Any member of the Shutter Network community can bring forth a proposal that must align with one of the two predefined proposal categories and adhere to this established voting process.

Key participants in this process include the proposal author(s), the broader Shutter Network community, and SHU token holders and delegates with voting rights in a Shutter DAO.

Proposals encompass the following phases:

Phase I: Proposal

Phase II: DAO Proposal & Vote

In Phase I, community members critically assess each proposal for clarity, coherence, and compliance with these governance guidelines. This phase is crucial for refining proposals based on collective insights and feedback.

After community engagement and feedback on the proposal, it can progress to Phase II, where it takes the form of a formal DAO proposal for a vote by a Shutter DAO on Snapshot or Fractal. A minimum of 24 hours for community feedback is recommended.

Phase I: Proposal

Community Engagement and Proposal Refinement

At this stage, utilizing the template for a proposal structure is both required and crucial for clarity and coherence. Moreover, all proposals should adhere to the CC-0 license, reflecting our commitment to open and collaborative development.

[Required - On-chain] A Shutter DAO Proposal Structure Template

[Required - Off-chain] A Shutter DAO Proposal Structure Template

During this phase, proposal authors should actively engage with the community, attentively responding to and incorporating feedback. This interaction is vital to refining and preparing your proposal for the subsequent phase.

The community should approach this phase with openness, moving proposals to Phase II unless there are significant reasons for holding back a proposal while still being mindful of not causing voter fatigue.

Possible grounds for not advancing a proposal to Phase III include:

  • Lack of focus or overly broad scope
  • Redundancy with existing efforts
  • Inadequate justification or failure to address critical feedback
  • Non-compliance with the Shutter DAO Governance Process

On-chain Proposal [Fractal]

Proposals requiring on-chain transactions by a Shutter DAO fall under this category. On-chain proposals should explicitly include necessary blockchain actions in all stages, as outlined in the proposal templates.

Examples of on-chain requirements include:

  • Requests for immediate transfer of funds or assets from a Shutter DAO treasury
  • Modifications to on-chain voting parameters of a Shutter DAO, like the quorum requirement
  • Adjustments to the Keyper threshold
  • Defining prerequisites for Keyper entitlements, including token allocations and stakes
  • Formulation of Keyper fee mechanisms and their distribution strategy
  • Management of the Keyper set

Off-chain Proposal [Snapshot]

This category encompasses proposals that do NOT require direct blockchain action by a Shutter DAO.

Examples of off-chain requirements include:

  • Non-binding resolutions
  • Temperature checks prior to an important/controversial on-chain vote
  • Requests for later transfer of funds or assets from a Shutter DAO treasury (For example, upon completion of product/service delivery or completion of milestones)
  • Requests For Proposals (RFPs)
  • Proposals for changes in a Shutter DAO’s processes and policies
  • Suggestions for integrating Shutter into other systems/platforms/chains
  • Proposals asking for integration support

By carefully selecting the appropriate proposal type and adhering to the Shutter DAO Governance Process, you increase the likelihood of your proposal being embraced by the community and ultimately ratified by Shutter DAO voters.

Templates

You can find a variety of proposal templates tailored to different proposal types in the ‘DAO Proposal Templates’ category.

Phase II: DAO Proposal & Vote

Advancing to a DAO proposal and vote

After a proposal has been open for community discussion and review, it’s time to move it into the DAO proposal and voting phase, marking the transition to Phase II.

For a vote to be considered valid, it must contain a link to the related discussion on the Shutter Forum.

Remember, no further changes can be made once a proposal enters Phase II.

Every proposal in Phase II will be available on the designated voting platforms, allowing Shutter Token holders and/or delegates to make their voices heard.

If a proposal is rejected in the voting process, it should either be revised and sent back to Phase I or completely withdrawn by its author. If a proposal gains approval, the following steps depend on its nature. For on-chain proposals, execution can be carried out by any community member through the Fractal interface. Off-chain proposals are to be implemented by the entity specified in the proposal if such an entity can be designated.

Finally, the outcome of every Shutter DAO vote will be documented and shared in the relevant thread within the Shutter Forum by a member of our community.

License

CC0: This work is marked with CC0 1.0 as dedicated to the public domain.

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Amendment version 1.0.1.

After a proposal has been open for community discussion and review, it’s time to move it into the DAO proposal and voting phase, marking the transition to Phase II.

For a vote to be considered valid, it must contain a link to the related discussion on the Shutter Forum.

Remember, no further changes can be made once a proposal enters Phase II.

I have added the changes mentioned above to the document.

The reason for the addition is that an author or proposal/vote creator could potentially try to circumvent negative discussions around a particular proposal by way of omission. Thus, it should be mandatory that for a vote to be considered valid, it must contain the link to the Forum discussion.

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