Governance framework for a DAO

About DAO in general

A Decentralized Autonomous Organizations i.e DAO is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain. Unlike traditional organizations where we have Top-Down heirarchy for decision making, in a DAO decision making process is carried out Bottom-Up. You can imagine every shareholder, every employee, no matter how small in the board meeting and everyone gets a say in the decision. But the voting power is directly proportional to the shares (tokens) owned by them.

GovDAO

GovDAO is similar to the DAOs used by the likes of AAVE, Compound Finance and many existing crypto projects. The User Interface is actually a clone of Compound Finance's Governance forum since it is really intuitive to use. It has its own GOV token and an integrated governance framework.

Prominent features of GovDAO

• GOV, an ERC20 token used for voting by community.
• The DAO has a treasury, which can be spent via passed proposals.
• Any GOV holder can create proposals for DAO with intital stake.
• All GOV holders can vote on a proposal using their tokens.
• Tokens used for voting are locked in user's accounts for the voting period to prevent double voting.
• Time limited voting on proposals.
• Only one proposal at a time.
• The proposal not only needs to have more votes in favour than against, but also has to pass Quorum.
• Quorum is the minimum number of tokens that are required in favour of the proposal to get it passed.
• If the proposal is rejected, the inital stake of the proposer is slashed and goes to treasury.
• Associated fixed rate exchange, where you can buy/sell GOV

Technology Stack

• ReactJS
• Web3.js
• Solidity
• Truffle Suite
• Polygon Mumbai Testnet

Key Benefits

• Unlike traditional organizations where only top board members get a vote in the decision making, a DAO includes all the members in the decision making process.
• It provides a way to reach consensus in a large decentralised organization of anonymous individuals.
• Lets the community members decide on how to use funds from organization's treasury.
• The smart contracts are open source and publicly verifiable via block explorers which makes the DAO transparent, secure and fair to everyone.