Governance

zerozero DAO Governance

Introducing zerozero governance

The zerozero community governs itself via the zerozero DAO, the decentralized governance framework that supports the zerozero DEX and the Ecosystem Fund.

The DAO follows a structured discussion and proposal process to vote on matters related to the zerozero DEX and the zerozero Ecosystem Fund to foster a creative ecosystem.

This governance guide is an overview of this proposal process. This document is set out today to begin the governance framework but may evolve through time as the DAO decides on the optimal way to run the 00 DAO.

Join the DAO

Holding $00 tokens is the only requirement for membership in the DAO and any member may submit ideas, comment, submit proposals and vote on proposals.

The zerozero Improvement Proposal (ZIP) Process

The zerozero DAO plans to launch via a formal proposal process based on Ethereum’s EIP system.

Proposals will be known as zerozero Improvement Proposals (ZIP) and will be submitted to the community through the ZIP Approval Process outlined below.

DAO Tools

The zerozero Foundation website helps educate members on the governance process along with easy access to the channels below in order to streamline the DAO’s operation and enhance its utility :

  • Discourse is where all DAO proposals will begin. A ZIP (zerozero Improvement Proposal) idea is submitted as a post in Discourse and receives confirmation from a moderator that it complies with DAO-approved guidelines before it appears to the community.
  • Snapshot is used for voting. Proposal drafts that have passed their respective approval processes become available for voting on Snapshot. zerozero holders must go through a wallet authentication process to vote. 
  • All updates will be made through the official Twitter account for the zerozero Foundation available here

ZIP Categories

Governance

Proposals to change how the zerozero DAO manages the ZIP decision process. This will be the first ZIP to be voted on as the community defines the way it wants to manage the zerozero DAO.

Transfer

Proposals to transfer tokens from the Ecosystem Fund to a given address.

DEX Governance

These proposals all relate to the zerozero DEX management. 

They can include DEX code upgrades, new features, liquidity mining, other rewards if relevant, adding and removing token pairs to the DEX and anything related to the zerozero DEX management.

Informational

Proposals for general guidelines or information to the community.

Treasury Management

Proposals to define the management of the DAO’s treasury. The DAO’s treasury may contain $00 tokens as well as all the LP tokens linked to the initial auction on the zerozero DEX.

For more details on initial auctions, see the zerozero DEX Whitepaper (coming soon)

ZIP Template

Template

A ZIP proposal typically includes:

  • Proposal Name: Only a few words.
  • Proposal Category: Among these 5 categories:
    Governance - Transfer - DEX Governance - Informational - Treasury Management
  • Abstract: Two or three sentences that summarize the proposal.
  • Motivation:  A statement on why the zerozero Community should implement the proposal.
  • Rationale: An explanation of how the proposal aligns with the zerozero Community’s mission and guiding values.
  • Key Terms (optional): Definitions of any terms within the proposal that are unique to the proposal, new to the zerozero Community, and/or industry-specific.
  • Specifications: A detailed breakdown of the platforms and technologies that will be used as well as the mechanisms inherent to the proposal.
  • Steps to Implement: The steps to implement the proposal, including associated costs, manpower, and other resources for each step where applicable.
  • Timeline: Relevant timing details, including but not limited to start date, milestones and completion dates.
  • Overall Cost: The total cost to implement the proposal.

The author can add additional fields to any template if necessary to fully communicate the intentions, specifics, and implications of the ZIP Draft.

Proposals that did not make it through the respective approval process and are being resubmitted should also include:

  • Link to the original proposal
  • The reason it was not approved
  • Changes that have been made
  • Why it should now be approved

The author can add additional fields to any template if necessary to fully communicate the changes made and the intentions, specifics and implications of the resubmitted ZIP Draft.

ZIP Approval Process

Phase 1: ZIP Idea

A ZIP idea is submitted as a post in Discourse and must receive moderator confirmation that it complies with DAO-approved guidelines before it appears to the community. 

The person or people submitting the ZIP idea will be referred to as the author or authors (please note that multiple members can work together on a ZIP idea, but it should be submitted only once and by one address.)

The ZIP idea informally gathers comments via Discourse for seven days. The author cannot edit the original post — if the author wants to propose changes to the original idea, they must do this via the comments.

Phase 2: ZIP Draft

Step 1: Once the seven-day feedback window has passed and a moderator closes the Discourse topic, a moderator will send the author the ZIP template and next steps for submission and voting. They may also suggest a proposal category, if not already specified in Discourse.

Step 2: The author will fill out the template, incorporating any Discourse feedback that helps the idea better serve the DAO. 
The author can add additional fields to the template if necessary to fully communicate the intentions, specifics and implications of the ZIP Draft. The moderator may also inform the author of incorrect or missing information that needs to be changed or clarifications that need to be made. 
If the author does not respond to those moderator requests within 30 days, the ZIP Draft will be automatically rejected.

Step 3: When the moderator confirms a ZIP Draft complies with DAO-approved guidelines, they assign a number to the ZIP for identification purposes throughout the rest of the process. From this point on, the ZIP is referred to as “ZIP-#: (Name) - (Category)”. 

For example, the first ZIP is “ZIP-1: Proposing the zerozero DAO - Governance”.

Phase 3: ZIP Moderation

The ZIP Draft is reviewed by a team of moderators and either approved or not approved based on whether it adheres to the DAO-approved guidelines. If approved, it moves on to Board Approval (Phase 4) and becomes a Pending ZIP. If not approved, it is eligible for resubmission, except in cases of violation of the law or reasonable suspicion of fraud or other misleading information.

Phase 4: ZIP zerozero Foundation Board Approval

The Pending ZIP that has been approved by moderators is then transferred to the zerozero Foundation Board for approval. The Pending ZIP at this phase will already be approved for compliance with the DAO-approved guidelines. The Board will check that this proposal is aligned with the zerozero DAO’s best interests and future developments. If approved, the Pending ZIP becomes a Live ZIP. If not approved, it is eligible for resubmission, except in cases of violation of the law or reasonable suspicion of fraud or other misleading information.

Phase 5: Live ZIP

Drafts that have passed Phase 4 become Live ZIPs on Snapshot during the next Weekly ZIP Release, which is when new ZIPs are released in batches Mondays at 10 AM ET. 
Once live on Snapshot, Live ZIPs are open to voting until Weekly Voting Close, which is at 10 AM ET on the Sunday following their release. Moderators are the only ones that can post ZIPs to Snapshot because they must confirm that each one has gone through the correct approvals process.

Phase 6: Final ZIP

If a Live ZIP has not gotten any votes or is tied by the Vote Close Time, it will be tagged as “Stalled” and be eligible for resubmission. In all other cases, Live ZIPs are moved to one of two Final ZIP categories. 
Rejected Final ZIPs can be resubmitted via the appropriate resubmission template if the author contacts a moderator. 
Accepted Final ZIPs move on to be implemented by the zerozero Foundation

Voting Mechanism

Snapshot was chosen as a 1st voting tool that:

  • doesn’t require gas payment
  • ensures transparency
  • expands governance participation to all holders of zerozero

Voting Process

  1. Moderators post ZIPs to Snapshot after ensuring that each one has gone through the correct approvals process. New ZIPs are posted every week on Mondays at 10 AM ET. This is when the six-day voting window opens as well.
  2. DAO members vote on Snapshot. One $00 token is equal to one vote. As votes cannot be divided into fractions and the total number of votes shouldn’t ever exceed the number of tokens minted, the number of votes will be rounded down if a fractional number of tokens is owned by the voter (i.e., 100.1 tokens will result in 100 votes, and so will 100.9 tokens). The voting options for a Live ZIP are “In favor” and “Against.” Voting “In favor” means the voter is in favor of implementing the ZIP exactly as-is. Voting “Against” means the vote is against implementing the ZIP exactly as-is — you may vote “Against” to encourage the author to resubmit the ZIP after making changes.
  3. The voting for each proposal in each weekly batch will be open for voting on Mondays at 10AM ET for six days, closing at 10 AM ET on the following Sunday.
  4. Proposals that receive a majority “In favor” vote are approved and move to be implemented by the Board.
  5. Proposals that are rejected will have the chance to be resubmitted via the appropriate Resubmission Template if the author contacts a moderator to initiate this process. If by the Vote Close Time the Live ZIP has not gotten any votes or is tied, it will be tagged as “Stalled” and be eligible for Resubmission.

Voting Delegation on Snapshot

DAO members have the ability to delegate their vote to any address they want.

DAO members can delegate their vote to another DAO member that they consider to be a trusted subject matter expert. Voting delegation also serves as a mechanism by which DAO members with tokens under initial lock-up (P00LS, creators, etc) will be able to vote on proposals on Snapshot while still respecting their lockup periods.

Glossary of terms

ERC-20:

Ethereum Token Standard

Ethereum:

World’s largest blockchain

DAO:

Decentralized Autonomous Organization

DEX:

Decentralized Exchange

Discourse:

Communication central

Foundation:

Legal entity overseeing a DAO

Governance:

The series of rules and voting processes determining the organization of the DAO

Open-source:

Available to all to read and copy

Listing:

The act of listing an asset publicly on a platform such as a Decentralized Exchange or a Centralized Exchange to allow for public price discovery.

Lock:

The act of locking some assets for some time in exchange for rewards

Minting: The act of creating new assets on a blockchain

onChain:

Happening on the blockchain

Private Key:

Every user on the blockchain that has a wallet will have both a public key and a private key. The public key is their public address that they can send to anyone and their private key is their secret address they need to keep private to have access to their wallet. 

Quorum:

To be able to post a proposal on Discourse, there are currently no technical requirements but a threshold of 1 $00 token will be put in place in order to create a proposal. In order for a vote to pass, a quorum depending on the category of the proposal must be met. For Governance, Transfer and Treasury Management ZIP categories at least 100,000 $00 tokens must vote. For DEX Governance and Informational ZIP categories at least 50,000 $00 tokens must vote.

Smart contract:

Programs stored on a blockchain that run when predetermined conditions are met.

Snapshot:

Voting application

Staking:

Tying up assets 

Token:

A creator coin in the form of a digital currency, a cryptocurrencyModerator: A services provider for the zerozero Foundation that will moderate content on the Discourse forum.

Voting:

Users can vote for or against single proposals once they have voting rights delegated to their address. Votes can be cast while a proposal is in the “Live” state. 

Voting Period:

Once a proposal has been put forward, members of the zerozero community will have a seven day period (the Voting Period) to cast their votes. ZIPs are released in batches Mondays at 10 AM ET, and close at 10 AM ET on the Sundays following their release.

Wallet:

onChain address for any user. A wallet is the onChain representation of holdings in a portfolio.

$00:

An ERC-20 token that designates the weight of a user’s voting rights. The more $00 a user has in their wallet, the more weight their delegation or vote on a proposal holds.

The zerozero DAO’s Future

The zerozero DAO will continue to be governed by the zerozero community comprising all holders of $00 tokens. As the community increases in size, decisions will be increasingly democratized and decentralized. Overtime, the DAO will turn the current voting mechanism into a fully on-chain mechanism to benefit from the virtues of decentralization. The zerozero DAO is here to help shape a cultural shift towards social tokens and true creative innovation.