1. DAO’s Mission and Vision
Swell DAO, a Decentralised Autonomous Organisation, is on a mission to transform the landscape of restaking. The DAO achieves this by promoting inclusivity and accessibility, thereby empowering a wider spectrum of participants in the DeFi sector. With the SWELL governance token, the DAO maintains the Swell protocol by conducting key decision-making processes such as setting fees, appointing delegates, managing proposals, deciding on Layer 2 upgrades, determining AVS inclusion, and managing incentives and grants. Service fees collected by the DAO are channelled towards research, development, and protocol enhancement.
2. Membership
Membership in the Swell DAO means being part of a diverse and inclusive community committed to democratizing the restaking market. As a member, you are actively involved in governance, contributing to discussions, and shaping the future of Layer 2. Membership also entails holding SWELL, a token that represents your stake and influence within our DAO and the broader restaking ecosystem.
3. Roles and Responsibilities
In the Swell DAO, we have established a robust structure of roles and responsibilities to ensure smooth operations, effective decision-making, and active community involvement. These roles, which include Panels and the Community Moderators, are integral to our mission.
a) Voters
Voters are the cornerstone of the protocol, playing a critical role in shaping the future of the governance system. By exercising their voting rights, they directly influence key decisions that affect the direction and success of the DAO. Whether participating in protocol upgrades, fund allocations, or strategic initiatives, voters ensure that the governance process remains decentralized and representative of the collective will. Through their active participation, voters uphold the democratic principles of the DAO, empowering the community to move forward in alignment with its values and long-term vision.
b) Delegates
Delegates represent the interests of token holders and vote on their behalf in a governance system. By delegating tokens, holders transfer their voting power to a trusted delegate while retaining ownership of their tokens. Choosing a delegate is an important decision, as it ensures that the collective interests of token holders are considered in governance decisions. Delegating tokens allows holders to participate in the governance process without the need for direct involvement in voting or monitoring activities.
c) Moderator
Community Moderators are central figures in our DAO. Their responsibilities include:
- Checking and moderating proposals: The Community Moderators ensures that all proposals align with the mission and values of our DAO. They review each proposal for relevance, feasibility, and potential impact on our community and operations.
- Forum moderation: The Community Moderators is also in charge of moderating our forum. They foster a respectful and productive environment for discussion, collaboration, and decision-making among our community members.
- Establishing workflow: Beyond moderation duties, the Community Moderators plays a significant role in establishing and managing the workflow within our DAO. They coordinate tasks, manage timelines, and ensure that our operations run smoothly and efficiently.
4. Voting System
In the Swell DAO, we recognize the critical role that a robust and transparent voting system plays in effective collective decision-making. As such, we have chosen to implement Snapshot, a platform renowned for its off-chain voting capabilities, as our primary voting system.
a) Voting Power Units
The foundation of governance power in our DAO are $SWELL and $rSWELL. These tokens serves as the primary means for members to gain voting power.
b) Voting with Snapshot
Snapshot offers a user-friendly interface and is built with transparency in mind, making it an ideal choice for our DAO. One of its key advantages is that it allows our members to vote on proposals without incurring gas fees, thereby encouraging broader participation.
c) Delegation
Snapshot also supports delegation, which allows members to delegate their voting power to others. This feature provides flexibility and ensures that every member’s voice can be heard, even if they are unable to participate in every vote.
5. Proposal Management
In Swell DAO, we understand the significance of efficient proposal management. It is crucial to ensure that only viable and well-supported ideas are considered. To facilitate this, we have established clear guidelines for submitting, discussion, voting and implementation of proposals.
Get familiar with the required Proposal Structure.
a) Submission Guidelines
The proposal management process begins with submission. Any member can initiate a proposal in the Forum. Proposals should be clear, concise, and include a detailed plan of action. This ensures that all members understand the proposal and its implications.
b) Review and Discussion Period
Once a proposal is submitted, it enters a mandatory discussion period. This period allows members to review the proposal, ask questions, and share their perspectives. We believe that open and thorough discussion is crucial for informed decision-making. Therefore, each proposal must be discussed for a minimum period of 7 days before it is put to a vote.
Learn more about the Proposal Lifecycle.
c) Voting and Tracking Proposals
After the discussion period, the proposal is put to a vote using our Snapshot voting system. Any member, who holds a minimum of 10k $SWELL, can initiate a vote there. Members can track the status of proposals through Snapshot, which provides real-time updates on the voting process.
d) Approval and Implementation
- A simple majority is required for a proposal to be approved. This means that more than 50% of the votes cast must be in favor of the proposal. Once a proposal is approved, it will be implemented.
6. Emergency Functions
In the Swell DAO, we understand the importance of being prepared for emergencies to ensure effective handling of unexpected situations. To this end, we have developed emergency protocols for handling security breaches, financial crises, or significant operational disruptions.
a) Protocol Guardians
A key component of our emergency preparedness are our Protocol Guardians. This team is composed of experienced members who are trained to handle emergency situations. They are responsible for activating our emergency measures and coordinating our response efforts.
- The Protocol Guardians comprise individuals with extensive experience and a proven track record of trustworthiness.
b) Accelerated Proposals
In certain emergency situations, we recognize the need for swift decision-making. Therefore, we have a provision to accelerate proposals and bypass the usual forum discussion. These accelerated proposals can be put by Protocol Guardians directly into Snapshot for voting, ensuring that we can take quick action when necessary.
c) Veto Rights
In the event that the proposal pertains to elementary elements of the Swell protocol (L2, LST, LRT) the Protocol Guardians are afforded the prerogative to veto the proposal even after the community has given its consent. In such instances, the proposal can be resubmitted to the forum, thereby allowing for the reopening of the discussion.
7. Swell Improvement Proposal (SWIP)
The Swell Improvement Proposal (SWIP) is a formalized process for making changes to the Swell DAO. The SWIP process is designed to ensure that changes to the Swell DAO are made transparently, democratically, and with the consensus of the community.
a) Anatomy of a SWIP
A SWIP should include the following components:
- Summary
- A brief, two or three sentence summary of the SWIP.
- Purpose
- A statement explaining why the Swell community should adopt the SWIP.
- Justification
- An explanation of how the SWIP aligns with the mission and core values of the Swell community.
- Technical Details
- A comprehensive breakdown of the platforms and technologies to be used. This section allows you to elaborate on the reasoning behind your design choices. You can also discuss alternative designs that were considered and related work, such as how similar specifications have been successfully (or unsuccessfully) implemented in other chains or languages.
- Implementation Steps
- The steps required to implement the SWIP, including associated costs, manpower, and other resources for each step where applicable. SWIPs that involve transactions with third parties (like grants) must ensure that relevant legal documentation and procedures are also included.
- Schedule
- Relevant timing details, including but not limited to start date, milestones, and completion dates.
- Total Cost
- The complete cost to implement the SWIP. This section should include a breakdown of the total cost of the SWIP, including any associated costs for each step where applicable. Both fixed and recurring costs should be considered.