1inch DAO Governance Process

1inch Network 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.

Proposal Lifecycle

The 1inch Network DAO governance process takes place in the governance forum at gov.1inch.io. Proposals are formally ratified through the 1inch Improvement Proposal (1IPs). There are no requirements for participating in the 1inch Network DAO discussion. Anyone can sign up for the 1inch Governance forum, or Discord, and engage in the conversation.

Phase 1: Discussion

The purpose of this phase is to vet ideas with the broader 1inch community. Each unique idea should have its own thread so that the conversation can stay on topic, it should be as narrowly focused as possible. Anyone can participate in this phase of governance, and it occurs entirely off-chain. The goal of Phase 1 discussion is to gain a rough community consensus, and refine the idea so that it can be formalized. The thread author should make an effort to address all comments and take them into consideration.

Duration: Open-Ended

Phase 2: 1IP Formalization

Phase 2 is where the idea is formalized into an 1IP that includes all of the criteria specified in the 1inch Improvement Proposal (1IP) Template. It must be a clear and complete description of the proposed enhancement. It is a requirement that a single 1IP contains a single proposal. All 1IPs must have the following components (refer to the template for a detailed breakdown):

  • Simple Summary
  • Abstract
  • Motivation
  • Specification
  • Rationale
  • Considerations

The forum is the formal arena to debate the merits of each 1IP. Once the 1IP has been drafted, the author must post it on the 1inch governance forum and use the tag: Phase-2.

While the 1IP is in a draft state, the 1IP author is free to make modifications to the proposal based on feedback from the community’s review.

Duration: Open-Ended

Phase 3: 1IP Temperature Check

At any point during Phase-2, the author may finalize the 1IP by initiating a community temperature check. To do this, the author must change the tag of the forum post to Phase-3, and add a forum poll to gauge the community’s sentiment.

1IPs should only be progressed to Phase 3 once the author has considered all community comments and believes the 1IP is prepared for incorporation.
Phase-3 represents the final proposal. Other than correcting errata, 1IPs in Phase 3 may not be edited.

The poll must be open for 5 days and only have the following options:

  • (Yes) In favor of this proposal.
  • (No) Against this proposal.

Note: This process is irreversible, i.e., an author may not revert an 1IP back to Stage-2 if it fails the temperature check vote.

Duration: Exactly 5 days

Phase 4: Snapshot Vote

All 1IPs are confirmed, or rejected, by the 1inch Network DAO via an off-chain Snapshot vote. The Snapshot vote must link to the results of the successful Phase-2 forum poll and include the full text of the finalized 1IP. Anyone can initiate the Snapshot vote as long as all requirements of Phase-2 were met (it does not have to be the 1IP author).

The Snapshot voting period must last exactly seven days. During this period, addresses with voting power may vote for or against the proposal using the same two voting options as the Phase-2 poll:

  • (Yes) In favor of this proposal.
  • (No) Against this proposal.

Voting Weight is proportional to the amount of governance tokens held by, or delegated to, an address. To prevent griefing of the 1inch governance process, a minimum of 25,000 Voting Weight is required to create a Snapshot vote (e.g., 25,000 st1INCH or 125,000 v1INCH).

In order for a vote to be considered successful, both of the following must be met:

  • A minimum quorum of 10 million weighted votes must be cast.
  • A majority of the votes must be (Yes) I am in favor of this proposal.

Duration: Exactly 7 days

Phase 5: Implementation

After the Snapshot voting period has concluded, the results will be posted on 1IPs section of the governance documentation site. If the proposal has passed, it will move from the Active to Passed category. Unsuccessful proposals will move to Not-Passed.

SafeSnap allows for on-chain execution of the off-chain Snapshot vote by using the reality.eth oracle. Reality.eth’s bonded escalation period lasts at least 72 hours (this period is reset if the resolution is challenged). The SafeSnap process officially concludes once a full 72 hour escalation period has elapsed without challenge.

There is an additional 72 hour period of time between the SafeSnap resolution and the incorporation of said 1IP into the protocol – this is known as the Timelock. During the Timelock period, the 1inch Network DAO Treasury multisig owners will have the ability to veto malicious transactions in a 7-of-12 fashion.

For more involved 1IPs, the implementation will vary on a case-by-case basis.

Duration: 6 days, minimum

Passing Requirement: A relative majority of votes on the 1inch Network DAO Snapshot poll must be in favor of the proposal. Along with this, a total of 10M voting weight must participate in the vote.

Additional Resources

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


Update December 2021 – The full governance documentation site is live – Overview | 1inch Network

11 Likes

very good project airdrop

4 Likes

Appreciate the great work!

i love what the team is doing.

2 Likes