FAQ
1. What is the veGovernance model? Why does the veGovernance model require token locking for voting instead of direct voting based on token holdings?
The veGovernance model (Vote Escrowed) is an innovative DAO governance model (adopted by notable projects such as Curve and Pendle). In this model, users need to lock their tokens to obtain veTokens (voting power). The veTokens are non-transferable and non-circulating governance tokens. The longer the tokens are locked, the more veTokens can be obtained. Additionally, as the unlocking time approaches, the veToken value gradually decreases.
The veGovernance model encourages token holders who genuinely intend to participate in governance to lock their tokens, demonstrating a long-term commitment to the project. This helps prevent short-term token holders from negatively impacting the governance process in terms of enthusiasm, fairness, and impartiality.
2. What is voting power? How is it different from the number of votes?
Voting power represents the weight of one's vote and is represented with the amount of veTokens one holds. After obtaining veTokens (voting power), for a given proposal, you can only vote "For" or "Against" once, and your voting power will add a certain weight to that vote option. Unlike the number of votes, you cannot split the voting power among different options.
3. Does token locking mean storing the tokens in the platform's address?
Token locking involves locking the tokens in a time-locked smart contract on the blockchain, where only you can unlock them with your private key. Once the specified time elapses, you can retrieve the tokens, and no one else can access them. This achieves the same effect as Ethereum's locking contracts using Bitcoin's existing capabilities.
For more details, read Voting Power.
4. Can the locking contract be made public?
Yes, it can be publicly queried on the blockchain through popular BTC explorers like mempool.space, etc.
5. Is there a need to pay additional gas fees for voting after token locking?
DotDAO operates as an off-chain, gasless governance client, eliminating the burden of transaction costs and enabling all token holders to participate.
6. How many tokens need to be locked to obtain proposal rights generally?
The required number of locked tokens for proposal rights is determined by the DAO creator. If the DAO creator does not specify any requirements, there is no need to lock tokens to make a proposal.
7. How many tokens need to be locked to obtain voting power generally?
Locking any amount of tokens will grant you the corresponding voting power.
8. How is voting power distributed after token locking?
The voting power is determined based on the quantity of tokens held by the user and the duration of the lock-up period. Each DAO has its own calculation rules for voting power, which can be set and modified by the DAO creator. The voting power gradually decays over time and becomes zero when the lock-up period ends.
9. When the locking time expires, will the tokens automatically return to my address?
When the lock-up duration expires, the tokens become unlockable. You need to submit an unlocking request and authorize the corresponding signature. DotDAO broadcasts the unlocking script on-chain, and once confirmed, the BRC20 tokens will return to your address.
Creating a DAO
To create a DAO, visit the official website at https://dao.dotwallet.com and connect your wallet. Then, click on "Create DAO" on the webpage to enter the creation page.
On the creation page, the fields marked with an asterisk (*) are mandatory. Fill in the required information and click "Publish" to create your DAO.
Locking Process
To initiate a proposal or vote on an existing proposal in any DAO square, you need to lock the corresponding tokens to obtain veTokens.
Token locking requires your tokens to be in a transferable state. If they are not, you can click on "Inscribe Transfer".
After confirming the transferability, select the desired quantity of tokens and click "Submit Locking" to sign the transaction. The number of tokens locked must be equal to or greater than the specified requirement of the DAO to participate in voting or proposal submission.
Unlocking Process
In your locking records, when the lock-up period expires, you can click the blue "Unlock" button, sign the transaction, and unlock the tokens. The gray "Unlock" button will remain inactive until the designated time is reached.
Initiating a Proposal
You can join a DAO of your interest and click on "Initiate Proposal" within that DAO square.
Enter your proposal title and content, then click "Publish" and sign the transaction. Your proposal will be permanently recorded on the blockchain.
Casting a Vote
In a DAO square, you can click on a proposal of your interest to enter the voting page.
Based on the proposal's options, you can click "Vote" and choose either "For" or "Against". Your voting power is determined by the veTokens you hold for that particular token.
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