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Governance Process
The primary purpose of the Plasma DAO is to bring 1 billion users into Plasma Finance DeFi protocols.
Plasma Finance uses the best governance model of the Compound protocol called Governor Bravo (audit).
Plasma DAO (Governance of Plasma Finance) is a virtual organization that works autonomously following the rules set in smart contracts. Plasma DAO Smart Contracts gives power to the community of PPAY token holders to offer proposals and updates to the protocol, vote for them, and implement changes using administrative functions. In addition, proposals can use smart contract parameters and support new markets (chains) or parameters in protocols with completely new features.
PPAY token holders can delegate their right to vote to themselves or other wallets. After a proposal for corporate governance is created, there is a two-day period of consideration, after which weighs are recorded and voting begins. On-chain voting lasts 5 days. If a minimum voting threshold for the proposal is filed, it is queued into temporary locking and can be implemented for 2+ days. On average, any change to the protocols takes no less than a week, with the exception of force majeure or technical complexity.
Several governance venues are available to Plasma governance, each serving its own particular purpose.
Proposal Discussion on the Forum and Discord - have to hold at least 10.000 PPAY to participate in governance conversation.
Proposal for off-chain voting on Snapshot - have to hold at least 1.000.000 PPAY to create a proposal.
Proposal for on-chain voting on Governor Bravo - have to hold at least 10.000.000 PPAY to create a proposal.
The purpose of the Temperature Check is to determine if there is sufficient will to make changes to the status quo.
To create a Temperature Check:
- 1.Ask a general, non-biased question to the community on commonwealth.im/plasma-finance about a potential change (example: "Should Plasma governance supports Solana on Plasma Finance?"). Forum posts should be labeled as follows: "Temperature Check - [Your Title Here]". The forum post should include a link to the associated Snapshot poll.
- 2.Voters use Snapshot to indicate their interest in bringing it forward to the next stage. Snapshot poll lengths should be set to 2 days and announced on main social media.
That's it! You've just started the process of gaining support for a proposal. At the end of the 2 days, a majority vote with a 2,5M PPAY yes-vote threshold wins.
If the Temperature check does not suggest a change from the status quo, the topic will be closed on the governance site. If the Temperature Check does suggest a change, proceed to Stage 2: Consensus Check.
The purpose of the Consensus Check is to establish a formal discussion around a potential proposal.
To create a Consensus Check:
- 1.Use feedback from the Temperature Check post and create a new Snapshot poll that covers the options which have gained support. This poll can either be binary or multiple choice but you are required to include the option "Make no change" or its equivalent. Set the poll duration to 5 days.
- 2.Create a new topic in the Proposal Discussion category on commonwealth.im/plasma-finance titled "Consensus Check — [Your Title Here]". This will alert the community that this topic has already passed Temperature Check. Any topics beginning with Consensus Check that have not passed Temperature Check will immediately be removed by moderators. Make sure that the discussion thread links to the new Snapshot poll and the Temperature Check thread.
- 3.Reach out to your network to build support for the proposal. Discuss the proposal and actively solicit delegates to vote on it. Be willing to respond to questions on the Consensus Check topic. Share your view point, although try to remain as impartial as possible.
At the end of 5 days, whichever option has the majority of votes wins, and can be included in a governance proposal for Stage 3. A 10M PPAY yes-vote quorum is required for the Consensus Check to pass.
If the option "Make no change" wins, the Consensus Check topic will be closed by the moderators.
Phase 3 — Governance Proposal — is the final step of the governance process. The proposal should be based on the winning outcome from the Consensus Check and can consist of one or multiple actions, up to a maximum of 10 actions per proposal.
To create a Governance Proposal:
- 1.Write the code for your proposal, which will be voted on through the Governance Portal. More resources can be found here. All proposed code should be audited by a professional auditor. This auditing process may be paid or reimbursed by the community treasury.
- 2.Ensure that you have at least 10 million PPAY delegated to your address in order to submit a proposal, or find someone who has enough PPAY to meet the proposal threshold to propose on your behalf.
- 3.Create a topic in the Proposal Discussion category on commonwealth.im/plasma-finance titled "Governance Proposal — [Your Title Here]" and link to any relevant Snapshot polls/discussion threads as well as the code audit report. Topics that begin with "Governance Proposal" that have not successfully passed through the Temperature Check and Consensus Check stages will be removed by moderators.
- 4.Call the propose() function of Governor Bravo to deploy your proposal.
- 5.The Onchain Governance proposal quorum is 50M PPAY to approve the proposal.
Once the propose() function has been called, a five-day voting period will start. Ongoing discussion can take place in the commonwealth.im/plasma-finance forum. If the proposal passes successfully, a two-day timelock will follow before the proposed code is executed.
The process described above lays out a structure for those wishing to host a formal vote around a particular issue.
However, governing this system also requires a degree of "meta governance", discussions that inform the direction of and the implementation processes behind policy but which don't qualify as policy themselves.
The community may discuss new ideas and strategies for governance — including changes to the three-step process outlined above — in the "Governance-Meta" category. On-chain voting is not necessary to make updates to off-chain processes.
- PPAY: An ERC-20 token that designates the weight of a user's voting rights in the Temperature and Consensus check (Discord/Commonwealth/Snapshot). The more PPAY a user has in their wallet, the more weight their delegation or vote on a proposal holds.
- Delegation: PPAY or gPPAY holders cannot vote or create proposals until they delegate their voting rights to an address. Delegation can be given to one address at a time, including the holder's own address. Note that delegation does not lock tokens; it simply adds votes to the chosen delegation address.
- Proposal: A proposal is an executable code that modifies the governance contract or treasury and how they work. In order to create a proposal, a user must have at least 1% (10M gPPAY) of all gPPAY delegated to their address. Proposals are stored in the "proposals" mapping of the Governor smart contract. All proposals are subject to a 5-day voting period. If the proposer does not maintain their vote weight balance throughout the voting period, the proposal may be canceled by anyone.
- Quorum: In order for a vote to pass, it must achieve a quorum of 4% of all gPPAY (40M) voting in the affirmative. The purpose of the quorum is to ensure that the only measures that pass have adequate voter participation.
- Voting: Users can vote for or against single proposals once they have voting rights delegated to their address. Votes can be cast while a proposal is in the "Active" state. Votes can be submitted immediately using "castVote" or submitted later with "castVoteBySig" (For more info on castVoteBySig and offline signatures, see EIP-712). If the majority of votes (and a 4% quorum of gPPAY) vote for a proposal, the proposal may be queued in the Timelock.
- Voting Period: Once a proposal has been put forward, Plasma community members will have a five-day period (the Voting Period) to cast their votes.
- Timelock: All governance and other administrative actions are required to sit in the Timelock for a minimum of 2 days, after which they can be implemented.