SUN DAO Governance
Background
In order to achieve community autonomy and decentralization of the protocol, SUN.io has decided to introduce SUN DAO. SUN DAO primarily aims to achieve consensus among all participants within the SUN.io ecosystem through governance mechanisms.
Key security elements of SUN DAO include protocol functionalities and the SUN token.
Protocol functionalities:
The governance mechanism within the decentralized protocol covers functions such as community participation, incentive measures, self-regulation, and policy management. SUN DAO governs primarily through on-chain proposals, enabling the protocol to operate, manage, and develop autonomously according to predefined rules, maximizing efficiency without third-party intervention through token-based incentives and intelligent management.
SUN token:
In the governance process of SUN DAO, the SUN token plays a crucial role. The goal of the SUN token economy is to promote the health and sustainable development of the SUN.io ecosystem, ensuring stakeholders and investors benefit under a more secure and reliable protocol framework.
SUN token holders bear significant responsibility for the protocol and ecosystem. Stakeholders contribute to the protocol through concrete actions, which are critical for execution, security, and functionality. The design of the SUN token aims to incentivize holders to actively participate in governance, ensuring the stability and continuous innovation of the protocol. Users holding SUN tokens not only participate in governance voting but also enjoy various rewards and incentives within the ecosystem. This design makes every token holder an integral part of the ecosystem, collectively driving the development and prosperity of SUN.io.
The establishment of SUN DAO aims to promote the development and long-term governance of the SUN.io protocol. Our goal is to establish a future-oriented governance framework that relies on systemic incentives and multi-level governance to create an effective balance, fostering the protocol's long-term growth and continuous optimization.
Process
The governance process of SUN DAO primarily operates through proposals. Proposals can support new markets or add entirely new functionalities to the protocol.
Initially, any governance idea can be proposed and discussed on the SUN DAO forum. If the discussion proceeds without disputes, any user holding more than 30 million veSUN tokens can call the contract to create a proposal, with other users participating in the voting process. A proposal can only be enacted if it garners more than 90 million affirming votes and surpasses the opposing votes. Implementation occurs two days after the proposal passes.
veSUN tokens enable holders to collectively act as managers of the protocol, allowing them to vote and propose changes. The detailed proposal process follows these steps(Before entering the Timelock step, incorrect or inappropriate proposals may still be canceled):
Discuss the proposal in the SUN DAO forum. If there are no disputes during the discussion, a proposal can be created.
veSUN holders will call the governance contract to create the proposal. After successful creation, the proposal will enter a review period of up to 2 days (48 hours). Following the review period, voting weights will be recorded and voting will commence.
veSUN holders can vote to support or oppose the proposal based on its content. Each veSUN represents one vote. The voting period lasts for 3 days (72 hours).
After the voting period ends (at the voting deadline), the governance contract will determine whether the proposal passes based on the vote counts. If the proposal does not pass, it will end; if it passes, it will proceed to the next step.
If the proposal is approved, it will enter a lock-up period of 2 days (48 hours). After the lock-up period ends, the proposal will be in a pending execution state and will take effect immediately upon execution.
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