Process

Voting mechanism in the governance process

The governance of DAO is a democratic governance involving community members.

Although there are various manifestations, for the essential goals of these governance, they all hope to realize trustless joint management with the help of blockchain technology.

The means to achieve this goal is the voting mechanism.

The governance of DAO can generally be considered as composed of six steps:

• Proposal,

• Review,

• Voting,

• Execution,

• Dispute,

• Arbitration

Proposals are suggestions for community revisions, funding applications, or asset changes initiated by members.

Each proposal must be passed during the voting stage before it can be implemented.

Under normal circumstances, the proposal is now complete, but some members may be dissatisfied with the voting results or think that there is cheating in the voting process. At this time, the dispute is reached. If the dispute is accepted, it will enter the arbitration stage.

The decentralized court is established for this purpose.

Members who are not satisfied with the result can apply to the decentralized court for arbitration, and the decentralized court will make a ruling on it.

In this governance process, the most core is the voting phase. It can be considered that the voting mechanism plays the role of the CEO in a traditional company, and the wisdom of this CEO comes from the consensus of the members of the entire DAO organization.