🗳️Voting and Quorum Mechanisms
How to vote in ReNVEST DAO and property DAOs?
Voting Process for the following DAO Levels:
Level-1 DAO (supra-DAO)
Level-2 DAO (sub-DAO/property-level DAO)
Quorum and timelines in both
To design an effective voting process and quorum for ReNVEST DAO, a three-round voting process shall ensures transparency, fairness, and effective decision-making. This system allows for broad participation and safeguards against hasty or poorly informed decisions while balancing the need for efficiency to move forward with relevant decisions at both DAO levels.
Here’s the step-by-step outline of the voting process with three rounds and a quorum requirement:
Voting Process: Three Rounds
Round 1: Proposal Submission & Initial Screening
Purpose: Filter and prioritize relevant proposals while giving the community a chance to provide feedback.
Who Can Submit: Any member of the ReNVEST DAO who holds governance tokens.
Proposal Requirements: Proposals must include detailed information, such as the objective, the expected budget, property details (for real estate acquisition), potential risks, and projected returns.
Process:
Proposal Submission Period: Governance token holders can submit their proposals during a designated period (e.g., 1 week).
Initial Review by the Community: During this period, all DAO members can review and comment on the proposals. A proposal threshold is applied (e.g., 1-5% of the total voting power), meaning a proposal needs to be backed by at least this percentage of the total voting power before proceeding to the next round.
Quorum: A low quorum requirement of 10% of total governance tokens must vote in this round, which ensures only relevant proposals move forward.
Outcomes:
Proposals that meet the threshold of support (1-5% backing) and reach the quorum advance to Round 2.
Proposals that fail are archived or resubmitted with modifications.
Round 2: In-Depth Voting & Debate
Purpose: Thorough examination and decision-making on proposals with higher community engagement and a deeper review.
Who Can Vote: All ReNVEST DAO token holders, with proportional voting rights based on the number of tokens held.
Process:
Debate & Voting: Proposals that pass Round 1 enter a detailed discussion period. DAO members can debate the merits of the proposal in forums or dedicated voting platforms.
Voting Options: DAO members can vote "Yes," "No," or "Abstain" on the proposal.
Duration: Voting remains open for a longer period (e.g., 5-7 days), allowing for more extensive consideration.
Quorum: A higher quorum of 20% of total governance tokens must participate in the vote for the results to be valid. This ensures broader participation and avoids decisions being made by only a small group of token holders.
Outcomes:
Proposals with a simple majority (>50%) of Yes votes and meeting the quorum advance to Round 3.
Proposals that do not reach a majority or fail to meet the quorum are either revised or rejected.
Round 3: Final Approval & Implementation
Purpose: Final validation of critical decisions before implementation, involving only major stakeholders for key governance actions.
Who Can Vote: In this round, only governance token holders who have significant stake levels (e.g., top 10-20% by token ownership) can vote. This is designed to ensure that major stakeholders give final approval, aligning long-term interests with the proposal.
Process:
Final Voting: After passing through detailed discussions and general community approval, the proposal enters the final stage for high-stakeholders to give their consent. This ensures that proposals with serious financial implications have the backing of those with the most at risk.
Voting Options: "Yes," "No," or "Abstain."
Duration: A shorter period (e.g., 3-5 days) to finalize the decision and proceed to implementation.
Quorum: The highest quorum, 30%, must be met to ensure that the decision has substantial backing from large token holders.
Majority Requirement: A supermajority of 66% Yes votes is required to pass at this stage, ensuring that only proposals with strong consensus get implemented.
Outcomes:
Proposals that receive a supermajority of Yes votes and meet the quorum are approved and automatically move into the implementation phase (e.g., property purchase, project initiation).
Proposals that do not meet the quorum or supermajority requirement are rejected or sent back for further modifications.
Summary of Voting Process and Quorums:
Round
Purpose
Voter Base
Quorum
Majority Requirement
Outcome
Round 1
Proposal Submission & Initial Review
All token holders
10%
1-5% threshold support
Proposal moves to Round 2 if it meets the threshold
Round 2
In-Depth Voting & Debate
All token holders
20%
>50% Yes votes
Proposal moves to Round 3 if it passes
Round 3
Final Approval & Implementation
Top 10-20% token holders
30%
66% supermajority Yes
Proposal is approved and implemented
Additional Safeguards for Investor Protection:
Delegated Voting: To avoid voter fatigue, investors can delegate their voting rights to trusted representatives, ensuring continuous participation without needing to vote on every issue.
Time-Delayed Execution: After Round 3 approval, a cooling-off period (e.g., 48 hours) can be implemented to allow final objections or for the DAO to catch potential vulnerabilities before executing the proposal.
Veto Rights: The DAO could introduce a veto power for top stakeholders in extreme situations, such as if a proposal is deemed harmful to the broader investor base. However, vetoes must also be governed by transparent processes to prevent abuse.
Why this Process Works:
Round 1 ensures that only serious and well-supported proposals advance.
Round 2 allows for comprehensive debate and input from the broader community, ensuring that decisions are not rushed or uninformed.
Round 3 gives final approval power to those with the most at stake, ensuring that proposals have strong backing before moving forward.
This three-round structure combines broad participation and major stakeholder control, making it both democratic and efficient, while protecting the interests of all investors.
Force majeure
The Level-1 DAO (supra-DAO) or also known as ReNVEST DAO per se may intervene in the property management of any Level-2 DAO (sub-DAO) as soon as force majeure applies.
Force majeure applies in situations where the property may lose value or be damaged partially or totally, marginally or substantially, and the specific Level-2 DAO (sub-DAO) formed of the investors in that tokenized property cannot act, form the quorum, decide through vote (as described above) in due time and immediately in order to avoid/prevent further damage to the property or in the detriment of another investor's position, which may demonstrate a simple majority position together with other investors as per the norms of Round 2 of the voting process.
Last updated