Governance Guide

Learn how to participate in DI Network governance, vote on proposals, create proposals, and delegate your voting power effectively.

Governance Overview

DI Network operates as a decentralized autonomous organization (DAO) where DI token holders collectively govern the protocol through on-chain voting.

Governance Scope

• Protocol Parameters: Fee rates, collateral ratios, leverage limits

• Smart Contract Upgrades: New features and improvements

• Treasury Management: Fund allocation and spending

• Asset Listings: New synthetic assets and collateral types

• Emergency Actions: Crisis response and security measures

Governance Benefits

• Revenue Sharing: Governance participants earn protocol fees

• Voting Rewards: Additional DI tokens for active participation

• Influence: Shape the future of DI Network

• Community: Connect with other protocol stakeholders

Getting Started

Prerequisites

• DI tokens for voting power

• Basic understanding of governance concepts

• Wallet connected to DI Network

• Time to research proposals

Voting Power Calculation

Voting Power = DI Balance × Staking Multiplier × Delegation Factor

Example:
DI Balance: 10,000 DI
Staking Multiplier: 2.0x (24-month lock)
Delegation: Self-delegated (1.0x)
Voting Power: 20,000 votes

Participation Rewards

Voting Bonuses:

• 80%+ participation: +10% staking APY

• 50-80% participation: +5% staking APY

• <50% participation: No bonus

Proposal Rewards:

• Successful proposals: 1,000 DI bonus

• Proposals reaching quorum: 500 DI bonus

Governance Process

Proposal Lifecycle

1. Discussion (7 days)
   ↓
2. Formal Proposal (3 days review)
   ↓
3. Voting Period (7 days)
   ↓
4. Execution (2 days timelock)

Proposal Requirements

• Minimum Tokens: 100,000 DI voting power to create

• Quorum: 10% of circulating supply must vote

• Approval: >50% of votes must be "Yes"

• Timelock: 48-hour delay before execution

Proposal Types

Parameter Changes:

• Adjust trading fees, collateral ratios

• Modify staking rewards, lock periods

• Update liquidation thresholds

Contract Upgrades:

• Deploy new contract versions

• Add new features and functionality

• Fix bugs and security issues

Treasury Spending:

• Development grants and funding

• Marketing and partnership expenses

• Security audits and insurance

Voting Guide

How to Vote

1. Browse Proposals: Review active proposals in governance dashboard

2. Research Details: Read proposal description and discussion

3. Cast Vote: Choose For, Against, or Abstain

4. Confirm Transaction: Sign voting transaction

5. Track Results: Monitor voting progress and outcomes

Voting Interface

Proposal #42: Reduce DSwap Trading Fees
┌─────────────────────────────────────┐
│ Status: Active Voting               │
│ Time Remaining: 3 days, 14 hours   │
│ Quorum: 12.5% (✓ Met)             │
│ Current Results:                    │
│   For: 67.3% (2,156,789 votes)    │
│   Against: 28.1% (901,234 votes)   │
│   Abstain: 4.6% (147,891 votes)    │
│ Your Voting Power: 20,000 votes    │
│ Your Vote: Not Cast                 │
└─────────────────────────────────────┘

Voting Strategies

Research-Based Voting:

• Read full proposal details

• Review community discussion

• Understand technical implications

• Consider long-term protocol health

Aligned Voting:

• Follow trusted community members

• Delegate to active participants

• Join governance discussion groups

• Participate in community calls

Delegation System

What is Delegation?

Delegation allows you to transfer your voting power to another address while retaining token ownership.

When to Delegate

• Limited Time: Can't research all proposals

• Technical Complexity: Proposals require expertise

• Trust Network: Know active, aligned participants

• Passive Participation: Want governance exposure without effort

Delegation Process

// Delegate voting power
await governance.delegate(delegateAddress)

// Self-delegate to vote directly
await governance.delegate(userAddress)

// Check current delegate
const delegate = await governance.delegates(userAddress)

Choosing a Delegate

Evaluation Criteria:

• Participation Rate: Votes on most proposals

• Alignment: Shares your protocol vision

• Transparency: Explains voting decisions

• Reputation: Trusted by community

• Activity: Regular engagement and discussion

Delegate Performance Tracking:

Delegate Performance Card:
┌─────────────────────────────────────┐
│ Delegate: alice.eth                 │
│ Participation: 94% (47/50 votes)    │
│ Delegated Power: 2.3M votes        │
│ Proposals Created: 3 (all passed)   │
│ Voting Rationale: Always provided   │
│ Community Rating: 4.8/5.0          │
└─────────────────────────────────────┘

Creating Proposals

Proposal Requirements

• Voting Power: Minimum 100,000 DI voting power

• Technical Specification: Clear implementation details

• Community Support: Pre-proposal discussion and feedback

• Impact Analysis: Expected effects on protocol

Proposal Template

# Proposal Title: [Clear, Descriptive Title]

## Summary
Brief overview of the proposal and its objectives.

## Motivation
Why this change is needed and what problem it solves.

## Specification
Technical details of the proposed changes.

## Implementation
How the proposal will be executed.

## Risks and Considerations
Potential risks and mitigation strategies.

## Timeline
Expected implementation timeline.

Pre-Proposal Process

1. Community Discussion: Post in governance forum

2. Feedback Collection: Gather community input

3. Refinement: Improve proposal based on feedback

4. Support Building: Build consensus before formal submission

5. Technical Review: Ensure implementation feasibility

Governance Participation

Active Participation

Regular Activities:

• Vote on all relevant proposals

• Participate in community discussions

• Attend governance calls and AMAs

• Provide feedback on proposals

• Help educate new participants

Advanced Participation:

• Create valuable proposals

• Become a trusted delegate

• Lead governance initiatives

• Moderate community discussions

• Contribute to governance tooling

Governance Calendar

Monthly Governance Schedule:
Week 1: Proposal discussion period
Week 2: Formal proposal submissions
Week 3: Active voting period
Week 4: Results and implementation planning

Community Engagement

Discussion Platforms:

• Discord: Real-time governance chat

• Forum: Long-form proposal discussions

• Twitter: Community sentiment and updates

• GitHub: Technical proposal details

Governance Analytics

Participation Metrics

Governance Dashboard:
┌─────────────────────────────────────┐
│ Total Proposals: 127                │
│ Active Proposals: 3                 │
│ Your Participation: 89% (113/127)   │
│ Voting Power Rank: #47             │
│ Proposals Created: 2                │
│ Delegation Received: 15,000 votes   │
│ Governance Rewards: 2,340 DI        │
└─────────────────────────────────────┘

Voting History

Track your governance participation:

• Proposal voting record

• Voting rationale and outcomes

• Delegation history

• Reward earnings

• Community contributions

Best Practices

Effective Governance

• Research proposals thoroughly before voting

• Participate in community discussions

• Vote on every proposal you understand

• Provide rationale for important votes

• Stay informed about protocol developments

Delegation Management

• Choose delegates carefully

• Monitor delegate performance regularly

• Switch delegates if performance declines

• Consider becoming a delegate yourself

• Maintain some direct voting power

Proposal Creation

• Build community support before formal submission

• Provide clear technical specifications

• Consider all stakeholder impacts

• Plan implementation timeline carefully

• Follow up on proposal execution

Governance Security

Voting Security

• Signature Verification: All votes cryptographically verified

• Timelock Protection: Delays prevent rushed decisions

• Emergency Procedures: Guardian system for critical issues

• Audit Trail: All governance actions permanently recorded

Protecting Your Voting Power

• Use hardware wallets for large holdings

• Verify governance contract addresses

• Be cautious with delegation decisions

• Monitor for governance attacks

• Keep private keys secure

Future Governance

Planned Improvements

• Quadratic Voting: Better representation for smaller holders

• Specialized Committees: Expert groups for technical decisions

• Cross-Chain Governance: Vote across multiple networks

• Enhanced Delegation: More sophisticated delegation options

Staying Engaged

• Follow governance roadmap updates

• Participate in governance experiments

• Provide feedback on governance UX

• Help onboard new participants

• Contribute to governance innovation