MELD is integrating a Decentralized Autonomous Organization (DAO) into its protocol functionality.

The governance system for the MELD DAO v1 is based on the following key aspects:

  • Proposals will be created only by MELD-approved users (governance committee)
  • Proposals are debated on an external forum
  • Proposals are sent to the DAO and can’t be modified after voting has started
  • Proposals need to be ratified by the MELD committee after voting approval and before execution

Governance behavior for users:

  • Users stake 20k MELD tokens to participate in governance. They receive a Governance NFT as a receipt.
  • You can redeem the Governance NFT for the original amount of stake after all the proposals you have voted on have been concluded
  • This NFT is used for voting. One NFT is one vote and can only vote once in a proposal
  • One user (account) can only own 1 NFT at the same time. New minting and transfers to an account that already has a governance NFT will be blocked by the Smart Contract.
  • The NFT can vote on all proposals active at the current point in time.
  • The NFT vote can be delegated to another NFT, and your vote will be automatically cast by the NFT you delegate to.
  • Users can change delegates at all times, but casted votes will not be modified

Information and options for users for the MELD DAO V1:

  • [Committee] Create new proposals
    • Title
    • Description
    • Voting period (voting start date, the period is specified by the DAO)
  • Stake MELD to get Governance NFT
  • Redeem Governance NFT and get back staked MELD
    • only possible if no active proposals that you have voted on at this moment (info on when this will be possible is available)
  • See Proposal history
    • Title
    • Summary of results and voting period
  • See Proposal detail
    • Title
    • Description
    • Voting period
    • Voting results
      • Votes for
      • Votes against
      • Participation %
  • Vote on a proposal
    • Vote for
    • Vote against
  • Delegate your vote
    • Need governance NFT id to delegate to (easy lookup to address)
  • Remove delegate
    • Option to change delegate to another one
    • Option to not delegate to anyone

Deeper tech info

These are the features of the Governance NFT:
  • NFTs are minted by locking an amount of MELD tokens
  • The votes are submitted per NFT, not per address.
  • NFTs are transferable.
  • Both the amount of MELD tokens needed to mint, and the fee can be configurable by the admin
  • An NFT cannot be redeemed if it is voted in an ongoing proposal. The proposal must end before the user can redeem the NFT

There is a delegate system to allow the users to delegate their votes to other users. These are the features of the approach:

  • NFTs cannot be delegated to by default. Their owners must enable the delegation to their NFTs first.
  • A user can disable the delegation to their NFT.
  • It is a one-level delegation approach. A can delegate to B, but then B cannot delegate to C.
  • A number N of NFTs can delegate to another one. This number can be configured by the admin (if the number is too high, the vote transaction will fail due to gas cost). By default there is no limitation, it must be set.
  • When an NFT submits a vote, it will submit its own vote as well as the votes of every NFT that has delegated to it.
  • There's a special case in which user A votes, then user B delegates to A, so A may vote again to cast the vote of B but skip A's vote since it was voted before.