1inch DAO Governance Process

1inch DAO is a collective of 1inch stakeholders - individuals interested in making the 1inch Network permissionless and decentralized and, therefore, efficient and secure for all users.

Governance on the 1inch Network has two layers. The first layer is Instant Governance, a feature that allows the community to vote for specific protocol settings in a transparent, fast and user-friendly way through staking 1INCH tokens. Discussions on Instant Governance are warmly welcomed in this category, but the voting process is beyond the scope of this forum. You can learn more about 1inch Instant Governance from this blog post and try it out here. The second layer is traditional governance. This consists of community consensus for larger protocol changes that are to be discussed here and eventually put into a formal proposal.

When proposing potential changes to the 1inch Network, it is important to keep ideas focused on a specific outcome that would benefit the community. The steps to reach this outcome should be documented in enough detail that the work required to fulfill the proposal is clear to both the community and 1inch team. During early conversations, these details may not be fleshed out, but clarity regarding implementation should be a top priority as proposals work toward later stages of the process.

Governance Process

The 1inch DAO governance process is done on the 1inch DAO category of the official forum. Please make sure to submit them to the appropriate subcategory. Proposals consist of three stages:

Stage 1: Discussion

This is where conversation should begin when proposing a change into 1inch DAO. Ideas for a change to the protocol should start in the 1inch DAO category with the stage-1 tag. This will be where the community should first share opinions on the idea before the proposal is formalized.

Duration: Open-ended

Passing Requirement: Nonehttps://gov.1inch.io/t/1inch-dao-governance-process/1973

Stage 2: Formalization

At stage 2, proposals should be formally submitted to the 1inch DAO category using the 1inch Improvement Proposal (1IP) template. For Stage 2 proposals, prefix “[1IP-#]” to the title (Replace # with the lowest available proposal number) and set the tag on the post to stage-2.

When filling out the 1IP template, the “Stage 1 Post” link should be updated to point to the initial forum discussion, all sections should be filled out completely, and the poll should be set to close in 5 days. The negative option for a proposal must be left as Against the change.

Duration: 5 days

Passing Requirement: For proposals to progress to Stage 3, a positive outcome on the poll should have a relative majority of votes.

Stage 3: Snapshot Proposal

This stage should contain the results of the successful stage 2 poll. It is at this point token holders can vote for or against the change. The stage-2 tag should be changed to the stage-3 tag. Additionally, a 7-day Snapshot poll must be opened. The text and voting options from the forum post should be copied to the Snapshot poll. The forum post should link to the Snapshot poll and the Snapshot poll should link to the forum post. Both staked and unstaked 1INCH tokens are eligible to vote across both the Ethereum and BSC chains.

Duration: 7 days

Passing Requirement: A relative majority of 1INCH used for voting on the 1inch DAO Snapshot poll must be in favor of the change. Along with this, a total of 4M 1INCH must participate in the vote.

Additional Resources

Thanks to Gnosis and Balancer for having a very thoughtful governance process to use as examples :heart: