One of the core use-cases on top of DMD Diamond blockchain is the onchain DAO governance system. That is in addition to other industry-first abilities presented by DMD Diamond’s ecosystem, such as; Instant transaction finality, dynamic blocktimes, higher throughput (minimum of 400 TPS), cheaper transaction fee, improved censorship & fork resistance, improved random number generation, improved front-running prevention mechanics, etc. Thanks to our implementation of the world cooperative HBBFT consensus and POSDAO election validation mechanism.
With DMDv4 mainnet release, DMD Diamond blockchain’s DAO serves as the backbone of DMD Diamond’s security – it is protecting all the core contracts of the DMD Diamond ecosystem. This means that the DMD Diamond blockchain launches in a true decentralized way, that no-one has the power to upgrade core contracts or DAO contracts without the DAO approving it. We are protected against lost developer keys or abuse to upgrade contracts. No developer or a numbers of developer managing multi-sig key could have the power to do any upgrades on our ecosystem without a DAO approval.
Also, the DMD Diamond’s DAO is a decentralized point of voting-based decision-making processes, ownership and governance towards the growth of DMD Diamond’s ecosystem. Every coin holder or ecosystem participant has the will to express their intention on the ecosystem improvements either by initiating a proposal or voting on an existing proposal created. You can propose any ecosystem changes – examples like the tokenomics adjustments, funding third-party projects on top of the blockchain, adding newer use-cases, forming partnerships, etc. Depending on validator candidates total DAO weight (%) (which includes the amount staked by other coin delegators and their own stake), they are able to cast their votes on these proposals subsequently.
Each validator candidate has their own Voting Power (%), which depends on the weight of their stake within the entire DAO DMD possession. Voting results are based on two main indexes, which includes the “Exceeding Yes Answers %” and Participation %”. For every proposal type, there’s a “minimum Exceeding Yes Answers and mandatory % of participants” required for each proposal to be accepted”.
For Minimum Exceeding Yes Answers (Open Proposal – 1/3 of total DMD possesion, which is funding from Low Majority contract balance; 1/2 of total DMD possesion, which is funding from Governance pot), Ecosystem Parameters’ Change (1/3 of total DMD possesion), Contract Upgrade (1/2 of total DMD possesion).
Participation % represents the mandatory % of participants required for each proposal to be accepted. This is based on the Voting Weight (%) of each validator candidate and varies by proposal type:
- Open Proposal – 1/3 of total DMD possesion (funding from Low Majority contract balance); 1/2 of total DMD possesion (funding from Governance pot)
- Ecosystem Parameters’ Change – 1/3 of total DMD possesion
- Contract Upgrade – 1/2 of total DMD possesion
If both conditions are met by the end of the Voting phase, the decision is considered accepted and moves to finalization and execution. If not, the decision is not accepted by the community but still needs to be finalized.
Whatever the voting result is – either it is accepted or rejected based on the set parameters of the “minimum Exceeding Yes Answers and participion percentage”, explains the opinion and conclusion of the majority of the community on such decisions. That establishes our community-driven efforts, without a centralised control anywhere.
As we have the Open Beta version of DMDv4 currently running and available for public testing, it’s necessary to test all the use-cases around our ecosystem’s DAO before DMDv4 mainnet release – from creating proposals, to voting on existing proposals, and more. This would guide you to have experience on how DAO works on the DMD Diamond ecosystem and leave informed feedback on what to improve on, prior to the mainnet launch.
For more details, refer to the DMD Diamond DAO GitHub documentation!
Yet to join the Open Beta Discord channel? Join here!
