diff --git a/.DS_Store b/.DS_Store index 5008ddf..ca2b787 100644 Binary files a/.DS_Store and b/.DS_Store differ diff --git a/docs/governance/dao-guidelines.mdx b/docs/governance/dao-guidelines.mdx new file mode 100644 index 0000000..aa74f60 --- /dev/null +++ b/docs/governance/dao-guidelines.mdx @@ -0,0 +1,491 @@ +# 1inch DAO Guidelines + +## Introduction +These guidelines are dynamic documents that change in tandem with the DAO. They are not only a static text. As the DAO's compass, these guidelines help the DAO stay true to its goals, maintain inclusivity and openness, and manoeuvre through the constantly shifting DeFi environment. Since the 1inch DAO is committed to maintaining a transparent operational structure, it will continue to be a leading and significant force in the DeFi market. + +## Contents + + +``` +1 The Guidelines +2 Definitions +3 The 1inch Network Organizational Structure + 3.1 1inch Foundation + 3.2 Core Contributors + 3.3 1inch DAO + 3.4 Community +4 Scope of Responsibility + 4.1 Meaning of Responsibility under the Guidelines + 4.2 1inch Products, Tools, and Features + 4.3 Division of Scopes +5 The 1inch DAO +5.1 Purpose of the 1inch DAO + 5.2 1inch DAO Values + 5.3 Membership + 5.4 1inch DAO Working Groups + 5.5 1inch DAO Treasury + 5.6 1inch DAO Governance + 5.7 Dispute Resolution + 5.8 Amendment +``` + +## 1 The Guidelines + +The 1inch DAO Guidelines serve to guide the operations of the 1inch DAO. They define the DAO's purpose, values, processes, responsibilities, working groups & related facets, and define the rules and recommended guidelines to ensure transparency, accountability, and efficiency in the DAO. The Guidelines are a strategic device for alignment of the Community to embody as much operational and procedural resilience into the governance process. The Guidelines also prescribe principles for governing the relationship of the 1inch DAO, the 1inch Foundation and the Community – clearly defining their respective scope of responsibilities. + +## 2 Definitions + +**“1inch”**. A digital brand and ecosystem that encompasses a variety of independent products and protocols. + +**“1INCH”**. An ERC-20 token acting as the governance token of the 1inch Network. + +**“st1INCH”**. A non-transferable ERC-20 token representing 1INCH staked within the 1inch protocol’s governance contract. + +**“v1INCH”**. An ERC-20 representing 1INCH tokens that are currently locked in the vesting contract. These tokens are held by backers, advisors, and core contributors but are not yet fully vested. + +**“Unicorn Power”**. Unicorn Power (UP) or Voting Weight represents an individual's influence within the 1inch DAO governance process. UP is earned by staking 1INCH tokens. The amount of Unicorn Power held decreases over time. + +**“1inch DAO Forum”**. [https://gov.1inch.io/discussions](https://gov.1inch.io/discussions), is a forum for discussions by 1inch Community members. + +**“1inch Network”**. A network of decentralized protocols, which unites the 1inch Network Interface, its decentralized protocols, the 1inch dApp,Third-Party Services, as well as the Community and 1inch DAO. + +**“1inch Network Interface”**. [https://1inch.io](https://1inch.io), is a website-hosted user interface for accessing the 1inch Network’s products and features, blockchain network transactions, and other third-party services. + +**“Third-Party Services”**. Third-party proprietary infrastructure that allows users to interact with the 1inch Network and for which 1inch has no direct or indirect control. + +# 3 The 1inch Network Organizational Structure +Stakeholders. The 1inch Network is composed of four groups of stakeholders: the 1inch Foundation, the Core Contributors, the 1inch DAO, and the Community, encompassing all of the above and a wider audience. These stakeholders are distinct and operate independently, although they share the common goal of growing the 1inch Network. + +## 3.1 1inch Foundation +The 1inch Foundation is an independent non-profit organization. Its mission is to foster the 1inch Network’s growth and support initiatives that benefit the Community. + +## 3.2 Core Contributors +The Core Contributors are a decentralized group of 1inch Network independent technical and non-technical contributors dedicated to building out the 1inch Network. One of the major Core Contributors is 1inch Labs, a software developer, which is continuously developing, maintaining, and implementing new solutions for 1inch Network. Core Contributors comprise a major part of the Community. + +## 3.3 1inch DAO +The 1inch DAO is the decentralized autonomous organization that governs the 1inch Network through a set of on-chain smart contracts. 1inch DAO comprises 1INCH tokenholders. + +## 3.4 Community +The Community is fostered and centered around 1inch Network, it encompasses 1inch DAO, Core Contributors, and any person wishing to participate in the ecosystem created by 1inch Network. + +# 4 Scope of Responsibility +## 4.1 Meaning of Responsibility under the Guidelines + +Responsibility in reference to a particular scope means either of the following, unless other expressly defined: + +- Management and day-to-day operation of the in-scope activity, product, tool, or component; + +- Autonomous decision-making powers over the in-scope activity, product, tool or component; + +- Ideation and implementation of initiatives or programs in furtherance of the growth of the in-scope activity, product, tool or component; + +- Delegation of rights and powers (but not responsibility) over an in-scope activity, product, tool or component; + +- Development, maintenance, update, and debugging of software components pertaining to the in-scope activity, product, tool or component; and + +- Accountability for the effective functioning of the in-scope activity, product, tool or component. + +## 4.2 1inch Products, Tools, and Features +The following are the various products, tools, and features that are currently in existence in the 1inch Network. + +### 4.2.1 1inch Aggregation Protocol +A discovery and routing algorithm, offering crypto-asset exchanges at the best rates on the market. Pathfinder finds the most efficient paths for a token swap, able to split between different protocols and even different market depths within one protocol in the shortest possible time. + +### 4.2.2 1inch Limit Order Protocol +A set of smart contracts allowing users to place limit orders, and Request For Quotes (RFQ) orders, which can later be filled on-chain in a flexible and highly gas-efficient manner. + +### 4.2.3 1inch Fusion Mode +1inch swap engine, allowing users to execute swaps at competitive rates without needing native tokens for gas fees or risking being front-run. The swaps are technically built as limit orders with a variable exchange rate filled by third party order takers called Resolvers. Each order is filled within a specific price range starting from high to low (dutch auction) and time range, designed to incentivize Resolvers to take orders. + +### 4.2.4 1inch Spot Price Aggregator +A set of smart contracts that extract price data for tokens traded on decentralized exchanges (DEXes) from the blockchain. The 1inch Spot Price Aggregator currently has support for DEXes on Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimism, Arbitrum, Fantom, Aurora, Base, zkSync, Gnosis Chain, and Klaytn. + +### 4.2.5 1inch dApp +A web-based decentralized application offering access to aggregated liquidity and competitive token swap rates on various DEXes, with unique features, including partial fill and the ability to find the best swap paths across multiple liquidity sources. + +### 4.2.6 1inch Mobile Wallet +A non-custodial crypto wallet made by 1inch. It is available both on iOS and Android. 1inch Wallet also serves as a client for interaction with other 1inch protocols. + +### 4.2.7 1inch Hardware Wallet +A fully open-source DeFi hardware wallet developed by independent contributors’ team for the DeFi community, with key features such as open-source security, enhanced integration with 1inch dApp, multi-seed option, fully air-gapped device with QR code or NFC connection options, transparent transaction signing and efficient, and lightweight hardware design. + +### 4.2.8 1inch Rabbithole +An innovative feature aiming to solve the issue of sandwich attacks for crypto wallets that don't support the Flashbots option. + +### 4.2.9 1inch Dev Portal +1inch Developer Portal is built to empower developers across the ecosystem with the tools they need to build DeFi applications by leveraging 1inch’s existing API technology stack. + +## 4.3 Division of Scopes + +### 4.3.1 1inch Foundation +As part of its mission, the 1inch Foundation assumes responsibility for the following: + +- day-to-day management of 1inch Network Interface; + +- the 1inch dApp; + +- 1inch domain name; + +- Third-Party Services integration into 1inch Network Interface. + +### 4.3.2 1inch DAO +The 1inch DAO assumes responsibility over the following: + +- Assessing, initiating, and administering any strategic decisions to ensure operational, technical, and regulatory scalability and observance for 1inch Network and 1inch Network Interface. Notwithstanding the responsibilities of 1inch Foundation, 1inch DAO shall have the autonomous right and responsibility to direct 1inch Foundation to implement any operational or technical decision to secure the interests of 1inch Network, 1inch Network Interface or the Community. + +- The smart contract, the features, the quantity and the other characteristics of the 1INCH token. + +- Ecosystem Governance. Governing all fundamental and strategic aspects of the 1inch Network, its ecosystem and products, except for those expressly excluded, including but not limited to the DAO governance framework and the DAO treasury. + +- Strategic Integrations and Research. Leading research, analytics, education and strategic integrations to enhance the 1inch Network’s functionality, decentralization and expansion. + +- Innovation and Infrastructure. Spearheading the creation and implementation of new products, including additional features, smart contracts, API integrations, and user interfaces, to foster innovation within the 1inch ecosystem, alongside the hiring of comprehensive software development services for maintenance and improvement of the underlying technological infrastructure. + +- Ecosystem Enhancement. Incentivizing the growth and development of various projects and products within 1inch Network and/or under 1inch brand, in accordance with the industry best practices, standards and requirements, including by offering technical, operational, business and administrative expertise through the 1inch DAO working groups and resources. + +- Treasury Management. Governing the use of the 1inch DAO Treasury. Through submitting and voting on proposals, token-holders can ensure that value is accrued and retained through the DAOs treasury management services. + +### 4.3.3 Accountability Mechanisms +To ensure accountability within the 1inch Network, and to ensure that the Stakeholders carry out their responsibilities in a transparent manner, the Stakeholders are encouraged to adhere to the following practices: + +- The 1inch DAO shall act to defend, safeguard and foster the best interests of the Member of the 1inch Community. + +- The 1inch DAO shall act to safeguard and initiate improvements where necessary for the operational, technical, and regulatory scalability and observance for 1inch Network and 1inch Network Interface. 1inch DAO shall engage an independent legal counsel to adhere to these standards. + +- The 1inch Foundation shall act in accordance with its statutory purposes to pursue the improvement, expansion and growth of 1inch Network for the benefit of its users. + +- Where there is a conflict or lack of clarity as to which stakeholder is responsible for a particular scope, the 1inch DAO with the assistance of independently engaged legal counsel should either take responsibility for the scope or assign the scope of responsibility to either of the other stakeholders. + +## 5. The 1inch DAO + +## 5.1 Purpose of the 1inch DAO +The 1inch DAO is a Community of the 1INCH tokenholders that governs the 1inch Network through a set of on-chain smart contracts. The 1inch DAO also aims to expand the 1inch Network ecosystem, by incentivizing and fostering ecosystem governance, enhancements, integrations, research and innovation, defined as the DAO’s in-scope activities in 4.3.2 above. All participants in the DAO are working towards a common goal of ensuring that the 1inch Network protocols and 1INCH, which are decentralized, owned and governed by the DAO, remain innovative, competitive and resilient to market and political volatility. + +## 5.2. 1inch DAO Values + +### 5.2.1 Decentralization + Governance in the 1inch Network should be open to all Members. Decision-making should be driven by the collective. + +### 5.2.2 Accessibility and Immutability +Governance should be transparent and user-friendly, clearly defined and accessible. Governance processes should maximize immutability to manipulation and centralized interference. Governance design should aim to reduce the threshold for meaningful participation sufficiently to allow 1inch DAO to tap into the collective intelligence of the Community. + +### 5.2.3 Ecosystem Development + The 1inch DAO should make aggressive efforts towards fostering innovation in the DeFi ecosystem, as well as encourage other forms of technical innovation. + +### 5.2.4 Humanitarian-focus + The 1inch DAO is committed to humanitarian causes and initiatives that provide aid or betterment for humanity. + +### 5.2.5 Security +In engaging in protocol governance or any other major network activity, the security and safety of the 1inch Network and the Community must be given the utmost priority. The 1inch DAO should constantly implement industry best practices in terms of security. + +### 5.2.6 Diligence +1inch DAO should invest resources into ensuring that 1inch Network and the Community at all times operate based on responsible decisions, diligent assessment and analysis, regulatory compliance and professional advice, when necessary. + +### 5.2.7 Inclusivity +The 1inch DAO should remain open and accessible to all willing participants regardless of their background—cultural, social, economic, etc. Diversity should be fostered. +enter link description here +## 5.3. Membership + +### 5.3.1 1INCH Token Holders +Anyone may participate in the DAO’s discussions. However, only persons who hold 1INCH or its wrapped tokens may vote on proposals (“Members”). + +### 5.3.2 Guidelines regarding Members Conduct +Members commit to abide by the following guidelines when engaging in activities, participating in discussions, or interacting with other members in the DAO through the Forum, 1inch Discord, 1inch Telegram, or any other approved channel. + +#### Value +The principle is to ‘create value for the discussion’. All inputs from Members are welcome as long as they are valuable. Members should avoid duplicating topics, discussions or proposals. + +#### Offering Feedback +The principle is to ‘criticize ideas, not people’. Members should always engage in civil discourse. They are free to disagree with ideas but in a tolerant and civil manner. + +#### Respect +Members should abstain from making posts that are abusive, discriminatory, racist, sexist, hateful, illegal or offensive in any way. This also entails respecting the privacy of others. + +#### Keeping Tidy +Members are encouraged to leverage the Forum tools to keep discussions focused, categorized and effective. Members should strive to keep the Forum clean. + +#### Official Language +All posts on the Forum should be made in English. Members are however free to make posts in other languages when using other 1inch platforms with multi-language support such as the 1inch Discord and Telegram. + +#### Content Manipulation +Members should not engage in spamming, sock-puppet accounts, brigading, ban evasion, poll manipulation, sybil attacks, “like” manipulation, or other forms of platform abuse or content manipulation. + +#### Member Accounts +The principle is to ‘use one account per person’. A member should only control one account at a time. Simultaneously operating multiple accounts is considered a form of sybil attack and is forbidden. + +#### Impersonation +Members should not impersonate individuals or entities. Anonymity/pseudonymity does not necessarily imply impersonation. The key factor is an intent to mislead others. + +**Disclaimer**: Members should acknowledge that the legal and regulatory status of virtual currencies, blockchain technologies, decentralized finance, governance, and DAOs is uncertain, rapidly changing, and highly dependent on the jurisdiction, regulatory apprehensiveness of such technologies, and a multitude of other factors. The Members should be aware of the risks associated with such an unpredictable legal environment. Recent developments in the regulatory approach suggest that some regulators may take a rather drastic approach in the assessment of the status of the DAO and its members. The Members shall acknowledge the risks mentioned above, assess each of the DAOs and their actions respectively, assume responsibility for it, and seek professional counsel whenever possible or required. + +## 5.4 1inch DAO Working Groups + +### 5.4.1 Setting up working groups +A working group can be set up or dissolved by making a proposal to the DAO and following the proposal process mentioned in 5.6.1. The proposal must include a clear rationale for the setting up of the group as well as the purpose, timeline, budget, membership guidelines and accountability mechanism. + +### 5.4.2 Functioning of the working groups +Each working group should include a Lead, that would be responsible for the performance of the working group. The Lead of the working group should be elected as part of the working group initiation proposal or separately elected or removed by the DAO vote. + +The Lead should be responsible for: + +- Requesting working group funds from the DAO in accordance with these rules. + +- Reporting with regard to the use of such funds and working group performance. + +- Creating and dissolving of sub-groups or workstreams within a working group. + +- Acting as a keyholder of working group multi-sigs. + +Working groups must report to the DAO on the use of DAO funds and operational achievements of the working group regularly, at least quarterly. + +### 5.4.3 Dissolution of the working groups +To validly dissolve a working group, there must be a governance proposal which lays out the details for the winding down of the working group. + +Any working group being removed must refund any unutilized funds to the 1inch Treasury and publish the final report on the used funds and operational achievements. + +### 5.4.4 Treasury Management Working Group + +#### a) Purpose +The Treasury Management Working Group is responsible for managing and overseeing the DAO Treasury and ensuring the efficient allocation and utilization of treasury funds. The Treasury Working Group is responsible for carrying out the following functions: + +- Serve as a custodian for the DAO Treasury Principles, set forth in 5.5.3; + +- Create budgets and financial plans for the DAO’s projects, working groups, and other activities; + +- Provide regular and transparent financial reports to the DAO Community; + +- Facilitate regular internal and external audits of the DAO's financial activities; + +- Seek and propose investment opportunities that align with the DAO's mission and risk tolerance; + +- Ensure accountability from funded working groups; + +- Establish and manage the treasury to shield the DAO from unforeseen liquidity risks; + +- Carry out other relevant strategic financial planning, budgetary, risk management, and other treasury operations for the DAO. + +#### b) Operations +The Treasury Working Group consists of (3) members and is responsible for structuring its operations, meetings, and procedures for carrying out its objectives. The Treasury Working Group should be transparent, and accessible, always seeking input or feedback from the DAO and other working groups. + +#### c) Election Process +Members of the Treasury Working Group should serve for a term of 1 year. When there are vacancies on the Treasury Working Group, an election will be held. The Treasury Working Group will initiate an election via Forum post. Any Community member may self-nominate by replying to the Forum post with the following information: + +- Discord handle; + +- Reason for applying; + +- Relevant qualifications. + +The nomination period will remain open for one week. Following this, Members elect Treasury Working Group members through a token-weighted Snapshot vote. The candidate with the highest number of votes will fill a vacant position first, followed by the candidate with the next highest votes if another position is vacant, and so on. + +Treasury Working Group members can be removed with a Snapshot vote in accordance with the 1inch Governance Process. + +Any changes to the application, election, or removal process should be made through a Snapshot vote. + +### 5.4.5 1inch DAO Recognized Delegates +A Recognized Delegate is an elected, paid position of reputable, diligent, and qualified 1inch DAO member established under the 1inch DAO Recognized Delegates Program (1RDP) to work closely with the team and contribute to the growth and sustainability of the 1inch DAO. + +Recognized Delegates carry out the following responsibilities: + +- Read, understand, and provide feedback on governance forum posts if necessary. + +- Always vote in the best interests of the DAO, 1inch Network and the Community over their personal interests. + +- Actively vote on governance proposals and explain the thinking behind each vote when relevant. + +- Understand the 1inch Network, its key metrics and the overall ecosystem. + +Further details concerning the specifics of the Delegate Program such as the Compensation, Responsibilities of the Recognized Delegates can be found in [[1IP-54] Recognized Delegates Program Renewal](https://gov.1inch.io/discussion/15534-1ipxx-recognized-delegates-program-renewal). + +### 5.4.6 1inch Community Builders + +#### a) Overview +Community Builders are 1inch supporters, users, and creative individuals who are empowered under the 1inch Community Builders program to support and expand the reach of the 1inch brand to make Web3 and DeFi more accessible to the masses. + +#### b) Tracks +The Community Builders program consists of the following tracks: + +1. **Translation Track**: Focuses on translating written content about 1inch to distribute information about the project. + +2. **Creative Track**: Involves producing visual content such as videos, tutorials, infographics, and social media posts. + +3. **Community Management Track**: Involves answering user questions, managing Community channels, generating quality online conversations, and hosting activities for local communities, platforms, and groups. + +4. **Events Track**: Focuses on organizing and hosting local events that are educational and informative, ultimately increasing exposure for 1inch Network and DeFi. + +#### c) Builder Roles +Builders can choose one or more roles based on their interests and skills. The following roles are available: + +1. **Scribes**: Create or translate written content for the 1inch blog. + +2. **Artisans**: Produce visual content including videos, tutorials, infographics, and social media content. + +3. **Concierges**: Manage and moderate Community channels, initiate organic discussions, and answer questions. + +4. **Activators**: Plan and host events, build partnerships, assist with business development, onboard users, network, and conduct marketing activities. + +Further details about the 1inch Community Builders Program can be found in [1IP-31](https://gov.1inch.io/snapshot/1inch.eth/0xbd6f7f56b95d9452e8b916c4cc8da23c4f1349666998c217573d7fd463833a83). + +## 5.5 1inch DAO Treasury + +### 5.5.1 Overview +The 1inch DAO Treasury is the pool of funds under the direct domain and ownership of the DAO. The Treasury may be used to fund initiatives, products, development, events, and activities of the Community. + +The primary 1inch DAO Treasury is [Safe](https://app.safe.global/balances?safe=eth:0x7951c7ef839e26F63DA87a42C9a87986507f1c07) smart contract wallet with multi-signature (multisig) functionality on the Ethereum mainnet. 12 multisig signers have initially been selected by the 1inch Foundation from the core contributor team and other well-known projects, such as [Synthetix](https://synthetix.io/), [Opium](https://opium.network/), [NEAR protocol](https://near.org/), and [zkSync](https://zksync.io/), to name a few. These signers can veto malicious transactions with a 7/12 approval quorum. + +### 5.5.2 DAO Treasury Principles +The management and use of the DAO Treasury shall adhere to the following principles: + +#### a) Efficient Resource Allocation +Funds from the DAO Treasury should be aimed at the development and growth of the DAO, network, and Community. + +#### b) Accountability +Each grant from the DAO Treasury should be accounted for by grantees or funded working groups. The Community acts as the overall and collective accountability enforcer and demands evidence of results and details on the uses of funds. + +#### c) Trust and Transparency +Each grant from the DAO Treasury should be provided solely to the contributors who have established trust. The purpose and motivation for each grant, as well as the distribution of such funds, should be known and reported to the Community. + +#### d) Prevention +The DAO should follow a system of checks and balances that prevents abuse, misuse, and embezzlement of treasury funds, including giving preference to result-driven projects, retroactive funding, milestone funding, etc. + +## 5.6 1inch DAO Governance + +### 5.6.1 Traditional Governance +Traditional Governance consists of 1inch DAO consensus for larger protocol changes that are to be discussed in the 1inch DAO Forum and eventually formalized into a proposal (1IP or Fast-Track). + +**Disclaimer**: The Members acknowledge that 1INCH token is a governance tool and shall be used responsibly by each member to express their wishes, initiatives and thoughts with regard to 1inch DAO and the possibilities it presents. The Members should not exploit 1INCH token for other purposes, including for personal gain and should not perceive it as a financial, trading or investment instrument whatsoever. The Members should rely solely on their personal judgment as to the financial, regulatory and other implications of the access and use of 1INCH token, and seek professional counsel whenever possible or required. + +### 5.6.2 1IP Proposal Lifecycle +A 1inch Improvement Proposal (1IP) is a standardized proposal framework that is utilized in the 1inch DAO governance process to propose and implement changes to the 1inch Network after it has been subject to voting by Members. The 1IP proposal lifecycle is as follows: + +#### Phase 1: Discussion +This is the idea-vetting stage where Community members engage in conversation about potential improvements to the 1inch Network. Anyone can participate in this phase, and it occurs entirely off-chain, specifically, on the 1inch DAO Forum. Community members are encouraged to abide by the Guidelines regarding Members Conduct when participating in this phase. + +Duration: Open-ended. + +#### Phase 2: 1IP Formalization +Here, the idea is formalized into a 1IP that includes all of the criteria specified in the [1inch Improvement Proposal (1IP) Template](https://gov.1inch.io/t/1ip-0-1inch-improvement-proposal-template/1972). All 1IPs must have the following components (refer to the template for a detailed breakdown): + +- Simple Summary (Not more than 280 characters) + +- Abstract + +- Motivation + +- Specification + +- Rationale + +- Consideration + +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 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 1inch DAO’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) + +- Abstain (neither in favor or against) + +**Note**: This process is irreversible, i.e., an author may not revert a 1IP back to Stage 2 if it fails the temperature check vote. + +Duration: Exactly 5 days. + + **Proposal Risk Review** + +The legal environment around blockchain technologies and virtual assets is constantly evolving. The unpredictability of the regulation may cause unforeseen risks and may subject the DAO to various legal requirements. To mitigate any possibility of legal non-compliance, the DAO commits to request an independent review of each proposal from the independent legal counsel engaged by the DAO, in the following cases: + +1. Whenever the proposal introduces a new product or feature, or a substantial change to the existing product or feature, especially, where such change or new development involves changes in financial and/or contractual liabilities of the DAO, or financial or contractual changes in the relationship of the DAO with the users of the products, DAO members, etc; + +2. Whenever the proposal raises the possibility that the regulations or law of any jurisdiction may be applied; + +3. Whenever the Community indicates and signals during the discussion that such a proposal raises reasonable doubts as to the legal implications; + +4. Whenever a risk review is requested by any 1inch DAO member of the ; + +5. Whenever a risk review is recommended by the engaged legal counsel (if applicable). + +It is to be understood by the members that such risk review is not a guarantee against any legal implications or proceeding and each member retains personal responsibility to assess each proposal, its consequences, participating in the vote of such proposal or any activity of the DAO in general. + +#### Phase 4: Snapshot Vote +All 1IPs are confirmed, or rejected, by the 1inch DAO via an off-chain Snapshot vote. The Snapshot vote must link to the results of the successful Phase-3 forum poll and include the full text of the finalized 1IP. Anyone can initiate the Snapshot vote as long as all requirements of Phase 3 are met and it passes the temperature-check vote. + +The vote must be open for 7 days and have the following options: + +- Yes (in favor of this proposal) + +- No (against this proposal) + +A minimum of 100,000 Voting Weight is required to create a Snapshot vote. + +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 (in favor of the proposal) + +Duration: Exactly 7 days. + +#### Phase 5: Implementation +After the Snapshot voting period has concluded, the results will be posted on the 1IPs section of the governance documentation site. If the proposal has passed, it will move from the Active to the Passed category. Unsuccessful proposals will move to the Not-Passed category. + +[SafeSnap](https://github.com/gnosis/zodiac-module-reality) allows for on-chain execution of the off-chain Snapshot vote by using the [reality.eth](https://reality.eth.link/) oracle. The 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 DAO Treasury multisig owners will have the ability to veto malicious transactions with a 7/12 approval quorum. + +For the 1IPs requiring off-chain actions, the implementation will vary on a case-by-case basis. + +Duration: 6 days minimum. + +### 5.6.3 Fast-Track Proposals + +#### a) Scope +Fast-Track Proposals is an alternative streamlined governance process for emergencies or urgent situations. Specifically, it is utilized under the following circumstances: + +1. Deploying 1INCH on new networks (subject to technical viability of decentralised deployment) + +2. Changes to the Governance Process + +3. Changes surrounding the 1inch Fusion Mode. + +Fast-Track Proposal shall have no spending power or authority. + +#### b) Fast-Track Proposal Process +The fast-track proposal process is as follows: + +1. Governance Thread for 24 hours. Whitelisted member posts a fast-track proposal on the 1inch DAO Forum with “[Fast-Track]” in the title of the thread. The thread lasts for 24 hours before moving forward to a SnapShot vote. + +2. SnapShot Vote for 48 hours. 1inch governance token holders will vote on the proposal via SnapShot. The duration of the vote is 48 hours. + +### 5.6.4 Voting Process + +#### a) Staking +1INCH must be staked in the 1inch governance contract to participate in voting. Staking is an on-chain event in which the user temporarily locks up their 1INCH and receives st1INCH. Staking is a time-locked event with minimum and maximum lock periods of 1 month and 2 years respectively. + +**Disclaimer**: The Members acknowledge that the 1INCH token is a governance tool and shall be used responsibly by each member to express their wishes, initiatives and thoughts with regard to 1inch DAO and the possibilities it presents. The Members should not exploit 1INCH token for other purposes, including for personal gain and should not perceive it as a financial, trading or investment instrument whatsoever. The Members should rely solely on their personal judgment as to the financial, regulatory and other implications of the access and use of 1INCH token, and seek professional counsel whenever possible or required. + +#### b) Unicorn Power +Unicorn Power (UP) or Voting Weight represents an individual's influence within the 1inch DAO governance process. UP is earned by staking 1INCH tokens. The amount of Unicorn Power held decreases over time. + +#### c) Delegation +Individuals may delegate their UP to an address of their choice. Those who choose to delegate their voting rights to another address are known as Delegators, while those who receive delegation are known as Delegates. Members may choose to delegate their voting powers in the [Snapshot 1inch space](https://snapshot.org/#/delegate/1inch.eth), or, by interacting directly with the Snapshot delegation smart contract. + +## 5.7 Dispute Resolution + +### 5.7.1 Dispute Resolution within the DAO +The members and DAO will strive to resolve any off-chain dispute, controversy or claim arising regarding the DAO or its activities, by negotiation and public discussion. DAO may encourage the Community to assist in dispute resolution or create other opportunities for respectful and effective negotiations. + +If a satisfactory and definitive solution is not achieved within 30 (thirty) days, DAO and its members commit to resolve all disputes via [Kleros Dispute Resolution Protocol](https://kleros.io/) by submitting the dispute to the respective Kleros Specialized Court or Kleros General Court. Parties of the dispute may appeal the decision within the mechanisms provided by the Kleros Dispute Resolution Protocol as well. The parties to the dispute are advised to agree on the law, language, appeal, and enforcement process before entering the Kleros Dispute Resolution Process. + +## 5.8 Amendment +These guidelines can only be amended through a Governance Vote with at least 10M $Unicorn Power tokens participating. diff --git a/docs/governance/instant-governance.mdx b/docs/governance/instant-governance.mdx deleted file mode 100644 index df34f54..0000000 --- a/docs/governance/instant-governance.mdx +++ /dev/null @@ -1,27 +0,0 @@ ---- -sidebar_position: 5 ---- -# Instant Governance -Instant Governance is a feature that allows the community to vote for specific protocol settings. The Aggregation Protocol and Liquidity Protocol each have their own Instant Governance module. - -## Aggregation Protocol Instant Governance -The [Aggregation Protocol Instant Governance](https://app.1inch.io/#/1/dao/governance/aggregation?action=stake) module allows community members to vote on how the Swap Surplus revenue stream is split between the Treasury and the referrers. - -## Liquidity Protocol Instant Governance -The [Liquidity Protocol Instant Governance](https://app.1inch.io/#/1/dao/governance) module allows the community to vote directly on major Liquidity Protocol parameters: the price impact fee, the swap fee, the Treasury accrual rate, the referral reward, and the decay period. - -There are two levels of Liquidity Protocol Instance Governance: - -* **Pool governance** only allows for the configuration of parameters specific to each pool. These parameters include the swap fee, the price impact fee, and the decay period. Liquidity providers may participate in pool governance by using that pool's LP tokens -- the weight of each user’s vote is proportional to the amount of LP tokens they have. The Liquidity Protocol uses a weighted average of all votes and applies it linearly over 24 hours. - -* **Factory governance** is responsible for parameters shared by all pools. These include the default swap fee, the default price impact fee, the default decay period, the referral reward and the Treasury accrual rate. - -### Decay period -The decay period is a unique feature that protects traders from front-running attacks and prevents arbitrage traders from easily extracting value from pools. Longer decay periods lead to a wider price spread in the pool after trades. 1INCH stakers can set a decay period between 15 seconds and 1 hour. - -### Referral reward -This reward is a part of the swap fee and the price impact fee which will be dedicated to referrers (dApps and wallets that attract users and trading volume). Referrers can subsequently claim their share of 1INCH tokens from all pools in one gas-efficient claim transaction. - -### Treasury accrual rate -All protocol revenue not sent to the referrers is instead sent to the Treasury. -