Governance
Magma is overseen by the MagmaDAO, with the responsibility of governing Magma resting on the DAO members to ensure its effectiveness and stability. The MagmaDAO may be tasked with the following:
Creating, deploying, and updating essential parameters for the protocols
Determining incentives for individuals or entities contributing to the DAO's objectives.
Managing node operators, which includes appointing initial node operators vetted by the DAO, identifying and vetting new node operators, and imposing penalties on those node operators subject to sanctions as per chain rules.
Governing the DVT network.
Approving grants to support diverse research and protocol guild initiatives.
Providing compensation to full-time contributors and handling other operational tasks.
Overseeing a bug bounty program and addressing emergency situations promptly.
Accumulating service fees from Magma, with the option to direct them towards insurance and development funds, and deciding on the distribution of these funds through the DAO.
During the first phase of MagmaDAO, governance is used to whitelist 3rd party validators for delegation. During the transition to the second phase of the protocol, governance will re-delegate stake towards Decentralized Validators, increasing security and decentralization.
Step 1: Community Discussion
Before creating a formal proposal, users may create an informal discussion thread on the governance forums. This is recommended to gather feedback and ideas before creating a formal proposal. The forums are open to anyone from the community who wishes to participate.
Step 2: Proposal Draft
DAO proposals can be submitted for voting, either for off-chain community decisions or for code to be executed on-chain. Proposals can attempt to: upgrade smart contracts, modify parameters in smart contracts, and more.
Step 3: Last call
After drafting a proposal, a Last Call period precedes the voting phase. During this time, there's a final opportunity to provide feedback on the proposal, assess community sentiment, and evaluate interest before moving forward to the voting stage.
Step 4: Final Vote
Proposals are submitted on-chain with Tally. Only a DAO member with 10 million or more Magma tokens owned or delegated to them through Tally can submit proposals.
Proposals that are posted to Tally must follow the standard Magma Improvement Proposal Process (MIP) guidelines, and a standard template is provided.
Step 5: Voting
After creating a vote, a 2 day waiting period is followed by a 5 day voting period. This ensures adequate time for all community members to delegate and vote. If a proposal meets a valid quorum of 100M Magma tokens, with more than 51% voting in favor, it is approved.
Step 6: Execution
Once approved in governance, proposals containing code execution are subject to a 10 day timelock prior to being executed. After the 10 day timelock has passed, anyone can execute the transaction to implement a DAO resolution.
Rejection of Proposals
DAO Resolutions can be challenged at any time in the governance process, up until the timelock has been completed.
Rejections follow the same waiting and voting period as regular proposals but have a 2-hour timelock.
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