Lux Docs

Governance Settings

Configure voting periods, thresholds, and governance parameters

Governance Settings

Governance settings control how proposals are created, voted on, and executed. These settings define the rules that govern your DAO's decision-making process.

Most governance settings require a governance proposal to change. Modifications affect all future proposals and should be carefully considered.

Overview

┌─────────────────────────────────────────────────────────────────┐
│                    Governance Settings                           │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Proposal Lifecycle                                              │
│  ─────────────────                                               │
│                                                                   │
│  ┌──────────┐    ┌──────────┐    ┌──────────┐    ┌──────────┐  │
│  │ Creation │───▶│  Voting  │───▶│ Timelock │───▶│Execution │  │
│  │Threshold │    │  Period  │    │  Delay   │    │          │  │
│  └──────────┘    └──────────┘    └──────────┘    └──────────┘  │
│   100K tokens     7 days         3 days         Immediate      │
│                                                                   │
│  Vote Requirements                                               │
│  ─────────────────                                               │
│  Quorum: 1,000,000 tokens (participation minimum)               │
│  Approval: >50% For votes (standard proposals)                  │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Proposal Settings

Proposal Threshold

The minimum voting power required to create a proposal.

┌─────────────────────────────────────────────────────────────────┐
│  Proposal Threshold                                              │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Current Value: 100,000 veTOKEN                                  │
│                                                                   │
│  New Value: [100000________] veTOKEN                            │
│                                                                   │
│  │ Threshold │ % of Supply │ Effect                      │     │
│  │───────────│─────────────│──────────────────────────────│     │
│  │ 10,000    │ 0.1%        │ Very accessible              │     │
│  │ 100,000   │ 1%          │ Moderate barrier (current)   │     │
│  │ 500,000   │ 5%          │ Significant barrier          │     │
│  │ 1,000,000 │ 10%         │ High barrier                 │     │
│                                                                   │
│  ⚠ Requires governance vote to change                           │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Considerations:

  • Too low: Spam proposals, cluttered governance
  • Too high: Limits participation, centralizes power
  • Balance: Allow engaged members to propose while preventing noise

Proposal Deposit

Optional deposit required when creating proposals.

┌─────────────────────────────────────────────────────────────────┐
│  Proposal Deposit                                                │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  ☑ Require deposit to create proposals                          │
│                                                                   │
│  Deposit Amount: [1000______] TOKEN                             │
│                                                                   │
│  Deposit Return:                                                 │
│  ● Returned if proposal passes OR reaches quorum                │
│  ○ Returned only if proposal passes                             │
│  ○ Never returned (fee-based)                                   │
│                                                                   │
│  Slash Conditions:                                               │
│  ☑ Proposal fails to reach quorum                               │
│  ☐ Proposal is defeated                                         │
│  ☐ Proposal is vetoed                                           │
│                                                                   │
│  Slashed deposits go to: [Treasury ▼]                           │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Voting Settings

Voting Period

How long the voting window remains open.

┌─────────────────────────────────────────────────────────────────┐
│  Voting Period                                                   │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Current Value: 7 days                                           │
│                                                                   │
│  New Value: [7___] days                                         │
│                                                                   │
│  │ Duration │ Blocks (~) │ Trade-off                     │     │
│  │──────────│────────────│───────────────────────────────│     │
│  │ 3 days   │ ~21,600    │ Fast decisions, less input    │     │
│  │ 7 days   │ ~50,400    │ Balanced (recommended)        │     │
│  │ 14 days  │ ~100,800   │ Maximum input, slow execution │     │
│                                                                   │
│  Note: Voting period is measured in blocks for precision         │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Voting Delay

Optional delay between proposal creation and voting start.

┌─────────────────────────────────────────────────────────────────┐
│  Voting Delay                                                    │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  ☑ Enable voting delay                                          │
│                                                                   │
│  Delay Duration: [1___] days                                    │
│                                                                   │
│  Purpose:                                                        │
│  - Allows community to prepare before voting starts              │
│  - Prevents snapshot manipulation                                │
│  - Enables token accumulation before snapshot                    │
│                                                                   │
│  Timeline with delay:                                            │
│  ┌────────┐  ┌────────┐  ┌────────┐  ┌────────┐                │
│  │Create  │─▶│ Delay  │─▶│ Voting │─▶│Timelock│                │
│  │        │  │ 1 day  │  │ 7 days │  │ 3 days │                │
│  └────────┘  └────────┘  └────────┘  └────────┘                │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Quorum Settings

Minimum participation required for a valid vote.

┌─────────────────────────────────────────────────────────────────┐
│  Quorum Settings                                                 │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Quorum Type:                                                    │
│  ● Fixed Amount                                                  │
│  ○ Percentage of Supply                                         │
│  ○ Percentage of Locked Supply                                  │
│                                                                   │
│  Quorum Value: [1000000_____] veTOKEN                           │
│                                                                   │
│  │ Type       │ Standard │ Constitutional │ Emergency │         │
│  │────────────│──────────│────────────────│───────────│         │
│  │ Quorum     │ 1M       │ 5M             │ 500K      │         │
│  │ % Supply   │ 10%      │ 50%            │ 5%        │         │
│                                                                   │
│  Quorum includes:                                                │
│  ☑ For votes                                                    │
│  ☑ Against votes                                                │
│  ☑ Abstain votes                                                │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Approval Threshold

Percentage of For votes required to pass.

┌─────────────────────────────────────────────────────────────────┐
│  Approval Threshold                                              │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Standard Proposals:                                             │
│  Approval Required: [50__]% + 1                                 │
│  (Simple majority)                                               │
│                                                                   │
│  Constitutional Proposals:                                       │
│  Approval Required: [67__]%                                      │
│  (Supermajority)                                                 │
│                                                                   │
│  Emergency Proposals:                                            │
│  Approval Required: [75__]%                                      │
│  (High consensus)                                                │
│                                                                   │
│  Calculation:                                                    │
│  Approval % = For / (For + Against) × 100                       │
│  (Abstain votes excluded from calculation)                       │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Timelock Settings

Timelock Delay

Mandatory waiting period before execution.

┌─────────────────────────────────────────────────────────────────┐
│  Timelock Settings                                               │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  │ Proposal Type    │ Timelock │ Purpose                    │  │
│  │──────────────────│──────────│────────────────────────────│  │
│  │ Standard         │ 3 days   │ Community review           │  │
│  │ Constitutional   │ 14 days  │ Extended review            │  │
│  │ Emergency        │ 0 days   │ Immediate action           │  │
│                                                                   │
│  Standard Timelock: [3___] days                                 │
│  Constitutional Timelock: [14__] days                           │
│                                                                   │
│  Grace Period: [7___] days                                      │
│  (Time to execute after timelock expires)                        │
│                                                                   │
│  ⚠ If not executed within grace period, proposal expires        │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Cancellation Rules

Who can cancel pending proposals.

┌─────────────────────────────────────────────────────────────────┐
│  Cancellation Rules                                              │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Proposals can be cancelled by:                                  │
│  ☑ Proposer (before voting ends)                                │
│  ☑ Guardian/Admin (any time before execution)                   │
│  ☐ Governance vote (during timelock)                            │
│                                                                   │
│  Guardian Address: [0x1234...abcd]                              │
│                                                                   │
│  Auto-cancel conditions:                                         │
│  ☑ Proposer's voting power drops below threshold                │
│  ☐ Quorum not met at end of voting                              │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Proposal Types

Standard Proposals

Default proposal type for routine governance.

┌─────────────────────────────────────────────────────────────────┐
│  Standard Proposal Settings                                      │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Allowed Actions:                                                │
│  ☑ Treasury transfers (< $100,000)                              │
│  ☑ Role assignments                                             │
│  ☑ Parameter updates (within range)                             │
│  ☑ External contract calls                                      │
│                                                                   │
│  Settings:                                                       │
│  - Proposal Threshold: 100,000 veTOKEN                          │
│  - Voting Period: 7 days                                        │
│  - Quorum: 1,000,000 veTOKEN                                    │
│  - Approval: >50%                                               │
│  - Timelock: 3 days                                             │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Constitutional Proposals

For significant protocol changes.

┌─────────────────────────────────────────────────────────────────┐
│  Constitutional Proposal Settings                                │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Required for:                                                   │
│  ☑ Contract upgrades                                            │
│  ☑ Governance parameter changes                                 │
│  ☑ Treasury transfers > $100,000                                │
│  ☑ Adding/removing signers                                      │
│                                                                   │
│  Settings:                                                       │
│  - Proposal Threshold: 500,000 veTOKEN                          │
│  - Voting Period: 14 days                                       │
│  - Quorum: 5,000,000 veTOKEN                                    │
│  - Approval: >66.7%                                             │
│  - Timelock: 14 days                                            │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Emergency Proposals

For urgent security actions.

┌─────────────────────────────────────────────────────────────────┐
│  Emergency Proposal Settings                                     │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  ⚠ Emergency proposals bypass normal timelock                   │
│                                                                   │
│  Allowed for:                                                    │
│  ☑ Pausing contracts                                            │
│  ☑ Revoking compromised permissions                             │
│  ☐ Treasury transfers                                           │
│  ☐ Contract upgrades                                            │
│                                                                   │
│  Settings:                                                       │
│  - Proposal Threshold: 500,000 veTOKEN                          │
│  - Voting Period: 3 days                                        │
│  - Quorum: 500,000 veTOKEN                                      │
│  - Approval: >75%                                               │
│  - Timelock: 0 days (immediate)                                 │
│                                                                   │
│  Requires Guardian approval: ☑                                  │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Vote Counting

Counting Method

┌─────────────────────────────────────────────────────────────────┐
│  Vote Counting Method                                            │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Method:                                                         │
│  ● Simple Voting (For/Against/Abstain)                          │
│  ○ Ranked Choice                                                │
│  ○ Quadratic Voting                                             │
│  ○ Conviction Voting                                            │
│                                                                   │
│  Abstain Handling:                                               │
│  ● Count toward quorum only                                     │
│  ○ Count as neutral vote                                        │
│  ○ Exclude entirely                                             │
│                                                                   │
│  Tie Breaking:                                                   │
│  ● Proposal fails on tie                                        │
│  ○ Guardian decides                                             │
│  ○ Extended voting period                                       │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Snapshot Timing

When voting power is calculated.

┌─────────────────────────────────────────────────────────────────┐
│  Snapshot Settings                                               │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  Snapshot Block:                                                 │
│  ● At proposal creation                                         │
│  ○ At voting start (after delay)                                │
│  ○ Custom block height                                          │
│                                                                   │
│  Implications:                                                   │
│  - Voting power is locked at snapshot                           │
│  - Token transfers after snapshot don't affect vote             │
│  - Prevents vote buying during active proposals                 │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Changing Settings

Governance-Required Changes

To modify governance settings:

  1. Create Proposal: Submit a constitutional proposal
  2. Discussion Period: Allow community review
  3. Voting: Token holders vote on changes
  4. Timelock: Changes queue for execution
  5. Execution: New settings take effect
┌─────────────────────────────────────────────────────────────────┐
│  Propose Governance Change                                       │
├─────────────────────────────────────────────────────────────────┤
│                                                                   │
│  This change requires a governance proposal.                     │
│                                                                   │
│  Proposed Change:                                                │
│  - Setting: Voting Period                                        │
│  - Current: 7 days                                               │
│  - Proposed: 10 days                                             │
│                                                                   │
│  Proposal Type: Constitutional                                   │
│  Expected Timeline: ~30 days                                     │
│                                                                   │
│  [Cancel]  [Create Proposal]                                     │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Best Practice: Make incremental changes to governance parameters. Large changes may have unintended consequences.

Conservative (High Security)

Proposal Threshold: 500,000 tokens (5%)
Voting Period: 14 days
Quorum: 20% of supply
Approval: 67%
Timelock: 14 days
Proposal Threshold: 100,000 tokens (1%)
Voting Period: 7 days
Quorum: 10% of supply
Approval: 50%+1
Timelock: 3 days

Agile (Fast Decisions)

Proposal Threshold: 10,000 tokens (0.1%)
Voting Period: 3 days
Quorum: 5% of supply
Approval: 50%+1
Timelock: 1 day

Next Steps

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