Glossary

List of words related to governance

DAO (Decentralized Autonomous Organization)

A decentralized organization that operates based on rules encoded as smart contracts on a blockchain. DAOs are governed by their members through a transparent voting process.

Proposal

A formal suggestion or plan put forward for consideration by the members of a DAO. Proposals can include changes to the DAO's operations, allocation of funds, or changes to the governance structure.

Multisig

A security mechanism requiring multiple signatures to authorize a transaction. This adds a layer of security by preventing a single point of failure.

Council

A council is a selected group of trusted members or representatives responsible for overseeing key decisions, managing proposals, or acting as a check on community governance.

Treasury

The collective funds or assets managed by a DAO. The treasury is often used to fund projects, pay contributors, and support the operations of the DAO.

Governance Mechanics

Quorum

The percentage of votes required for a proposal to pass. This threshold can be set to ensure that a proposal has sufficient support from the community before being enacted.

Delegation

The process of assigning voting power to another member of the DAO. Delegation allows members to entrust their voting rights to someone they believe will represent their interests.

Vesting

The process by which tokens are gradually released to their recipients over time. Vesting schedules are used to incentivize long-term commitment and participation in the DAO.

Technical Terms

On-Chain Governance

A governance system where all processes and decisions are recorded and executed on the blockchain. On-chain governance ensures transparency and immutability of the decision-making process.

Lockup Period

A predetermined period during which tokens cannot be sold or transferred. Lockup periods are often used to prevent market manipulation and ensure long-term commitment.