Following our vision towards a fully decentralized crypto cash-in/out protocol, it seemed logical and natural to use the power of a decentralized autonomous organization (DAO) to make the protocol fully decentralized.
The Dether DAO on top of the Dether protocol enables the community to use its collective intelligence in order to create a better self-sustainable economy on top of it. Dether Protocol will be governed by the token holders via a user friendly user interface. In order to participate, DTH tokens holders will be able to wrap the DTH tokens to WDTH, the governance token needed to participate in the Dether DAO.
A ratio of 1:1 will be established: 1 DTH will be wrapped to 1 WDTH.
A smart contract Voting.sol will have the rights to call the parameters to change the protocol elements. DTH token holders will be able to participate in the DetherDAO by making proposals and voting on proposals to influence the Dether’s protocol parameters.
Global Protocol Parameters:
These parameters are global, meaning that they’re related to all countries of the Dether Protocol. Participants will be able to modify 5 main global parameters:
- Bid Period
It represents the time that a zone auction lasts (set by default to 48 hours)
- Cool down Period
The cool down period represents the amount of time a seller has to wait before being able to open an auction on a zone that has just been created or auctioned (the cool down period is currently set at 24 hours).
- Entry fees
It represents the fees taken in DTH to the seller when he opens an auction. To open or join an auction, a seller must pay an entry fee of (set by default of 4%) of the DTH tokens staked by the current owner.
- Minimum raise
It represents the minimum amount to raise when joining an opened auction on a zone. Currently, to open or join an auction, you must always bid at least 6% more than the current highest bid.
- Zone taxes
Based on the Harberger tax principles, it represents the daily fee paid by the zone owner on what he has staked in DTH to own the zone. Every 24 hours, zone owners pay a tax of 0.04% to the DAO of their own staked DTH.
Country Floor Price
When a zone is free, tellers need to stake the licensing fees (the minimum being 100 DTH). Currently, the country floor price is set by default at 100 DTH per zone for all countries. However, as the economical situation changes from one country to another, the DetherDAO will be able to change it to a minimum of 1 DTH and more per zone. Moreover, the change will be able to occur per country delimited by geohash within the the Dether Protocol smart contract
DAO Treasury Fund
All taxes paid in DTH via the Dether Protocol (and that are not going to the zone owner) such as the zone tax, will directly go to the DAO Treasury Fund. Dether DAO participants will have the ability to create a proposal and vote on sending these collecting taxes in DTH to any address. As a result, external teams and builders willing to create projects on top of the Dether Protocol will be able to create a proposal in order to be funded in DTH by the Dether DAO via the collected DTH taxes.
There's a forum on where everyone can discuss about their proposals.
Then once a proposals reach support on the forum, DAO participants can create a proposal with the following steps:
- Wrap at least 50000 DTH to WDTH to participate in the Dether DAO on https://dao.dether.io
- Make new proposals about the Governance Parameters.
- Then everyone holding WDTH at the proposal creation block will be able to vote on it during 5 days.
When making a proposal on the Dether DAO platform, two main parameters have to be respected for the proposal to be approved:
- Quorum Reach: 25% of the WDTH circulating supply at the proposal creation block is needed to reach a quorum
- Minimum Support: at least, 60% of the voting power (WDTH voted on the proposal) have to be in favor of the proposal
Once accepted new rules will apply on the protocol, for all new interactions with it.