Governance Constitution for Hord

Governance Constitution for Hord

1. Explanation and Project Philosophy

At Hord, decentralized governance is crucial for building a thriving and sustainable platform. Our governance constitution aims to provide a framework that empowers token holders to participate in decision-making processes actively and shaping Hord’s future. By distributing voting power based on token ownership, we incentivize larger stakeholders to engage in governance while considering this model’s potential benefits and drawbacks.

General View:

This Working Constitution establishes the principles and provisions for a fair and long-lasting decentralized governance model.

We acknowledge the need for flexibility in this “Working” Constitution. Future challenges cannot be adequately addressed by a fixed governance model for Hord DAO.

By leveraging the collective wisdom of our community, we can make informed decisions that align with Hord’s long-term goals and values.

2. Process

We emphasize community engagement and collaboration to ensure the inclusivity and effectiveness of our decision-making process.

Step 1: Research Phase

Any community member can initiate a proposal by drafting an RFC (Request For Comment). The RFC should clearly articulate the proposed change, its objectives, and its potential impact on the platform. It invites the community to provide feedback and suggestions, fostering an iterative and collaborative environment.

Step 2: Community Feedback and Iteration

The RFC undergoes a period of community discussion and feedback. All stakeholders are encouraged to actively participate, offering constructive input and proposing alternative solutions or amendments. This iterative process allows for refining and enhancing proposals based on diverse perspectives.

Step 3: Proposal Finalization

After an ample discussion and iteration period, the RFC is finalized, incorporating valuable insights from the community. The proposal is then ready for submission.

Step 4: Snapshot Voting

The finalized proposal is submitted to the Hord Snapshot voting platform enabling token holders to cast their votes on governance proposals. The voting system and specifications are detailed below.

Step 5: Execution and Implementation

If a proposal reaches the minimum quorum and satisfies the voting threshold, the Hord team will implement the approved changes responsibly and promptly.

3. Voting System and Specification

To ensure a fair and representative voting process, the following specifications are implemented:

HORD Holders on Arbitrum and Ethereum Chains can Vote

Holders on BSC are asked to port their tokens to ARB via ChainPort.

Minimum Quorum to Approve a Proposal

A minimum of 2.5% of the circulating supply must participate in the voting process for a proposal to be considered valid.

Voting System

Hord adopts a time-weighted voting mechanism, where the voting power of each token holder is determined proportionally to the number of tokens they hold. This formula assigns voting power according to the following calculation:

Voting Power = (Tokens Held * Time held multiplier) / Total Token Supply

Voting Power Increase Table

To incentivize long-term participation, the voting power of token holders increases over time. The idea is to reward token holders who have demonstrated a long-term commitment to the DAO with a more substantial voting influence without unbalancing the vote. If the increase in voting power is too high, it discourages new holders from participating.

There is a breakdown of how time will affect voting power:

  • 3 months: 1.2x

  • 6 months: 1.4x

  • 12 months: 1.8x

  • 24 months: 2x

Extra Voting Power Capped After 2 Years

Once a token holder has held their tokens for two years, their voting power becomes capped. This limitation ensures that no single participant can accumulate disproportionate influence over time, promoting a more balanced and sustainable governance structure.

Voting Requirements

Token holders must have held their tokens for a minimum of two weeks to be eligible to participate in the voting process.

Proposal Submission Process

To send a proposal, token holders must fulfill two requirements: A minimum of the equivalent of $1,000 in HORD tokens is required with a holding period of one month. The snapshot platform is updated once per week, every Monday at 10:00 UTC, to reflect the latest token holdings.

Voting Period

The minimum duration for all types of proposals is 10 days. Should a proposal be scheduled to end on a Saturday or Sunday, the voting period will be extended to a Monday. These periods allow sufficient time for token holders to review, discuss, and cast their votes.

Hord aims to foster an inclusive, transparent, and responsible decision-making process through this governance constitution.