Governance

We aim to facilitate the engagement of token holders as part of launching the network.

Introduction

Polkadot allows its parachains to exercise full sovereignty and manage its governance independently. Changes to the network are coordinated on-chain autonomously and certify that development reflects the values and avoids stagnation. This is compatible with Demodyfi decentralized, stake-based governance, and prevents being any security risks from centralization. Since all management is on-chain, token holders will have full insight into the fund’s management and can vote to replace a general councilor.

Demodyfi is a decentralized network that will be governed by a community of token holders, including core developers, application developers, collators, users, and other contributors. Our aim is to facilitate the engagement of token holders.

Demodyfi's governance tokens allow token holders to govern the protocol, and in some cases enable them to capture value directly from our Dapp application usage:

• Proposals — actions or items being proposed by token holders. This need to be seconded by other users in order to move to referendum

• Launch period — how often new public referenda are launched

• Voting period — time token holders have to vote for a referendum (duration of a referendum)

• Voting — referenda are voted on by token holders on a stake and conviction weighted basis. Convictions refer to the time that token holders wish to lock their tokens when voting: the longer they are locked, the more weight their vote has. Referenda that pass are subject to delayed enactment so that people who disagree with the direction of the decision have time to exit the network

• Lock period — time (after the proposal enactment) that the tokens of the winning voters are locked. Users can still use this tokens for staking or voting

• Delegation — act of transfering your voting power to another account for up to a certain conviction

On-chain governance

• Referendum — a proposal for a change to the Demodyfi protocol including values for key parameters, code upgrades.

• Voting — referenda will be voted on by token holders on a stake-weighted basis. Referenda which pass are subject to delayed enactment such that people that disagree with the direction of the decision have time to exit the network

• Treasury — A collection of funds that can be spent by submitting a proposal along with a deposit. Spending proposals must be approved by the council. Rejected proposals will result in the proposer losing their deposit

Price stability mechanisms

Oracles are essential for the normal operation of the protocol that DMOD Token holders may vote to add new Oracle or remove existing ones. DMOD Token holders may vote to make a strategical decision on protocol upgrade as the whole network grow, such as whether to upgrade the existing network from a Polkadot Parachain to an independent chain bridging to Polkadot. Oracles are essential for the normal operation of the protocol that DMOD Token holders may vote to add new Oracle or remove existing ones. DMOD Token holders may vote to make a strategical decision on protocol upgrade as the whole network grow, such as whether to upgrade the existing network from a Polkadot Parachain to an independent chain bridging to Polkadot.