Overview
This Constitution, as stated below, is intended to be a living document that will evolve alongside the development of the Cryptex DAO.
Cryptex Governance
This Constitution outlines the key governance principles, guidelines, and processes by which the Cryptex DAO will operate.
Governance Principles
The Cryptex DAO adopts the following core principles, reflecting its governance philosophy:
- Decentralization
- Permissionless Participation
- Accountability
- Transparency
Longevity and Evolution
The primary goal of this process is to promote clarity and establish a straightforward yet resilient framework for conducting Cryptx governance. As conditions evolve, it may be necessary to adjust the process parameters. Any such updates should be introduced through a formal proposal and follow the procedures in place at the time the proposal is created.
Governance Components
1. CTX Holders
Anyone can participate in the Cryptex DAO by holding / staking and delegating Cryptex’s native token, CTX, and by making proposals and/or voting on proposals submitted through the Cryptex forum and community channels.
2. Delegates
CTX holders who are unable to participate directly may delegate their voting and proposal rights to a Delegate of their choice, who will represent them in the governance process.
Governance Proposal and Voting Procedures
DAO Proposal Types
The Cryptex DAO may periodically submit proposals to decide on matters related to the future of the Cryptex protocol. There are three primary types of proposals:
- Treasury Transfers
- Changes to Governance Parameters
- R&D for New Products
- Protocol Upgrades
Proposal Drafting and Creation Phase
DAO proposals follow this process:
- Any CTX holder or Delegate may draft proposals and publish them on the Cryptex forum for community review and discussion.
- A proposal must pass a temperature check, requiring at least three (3) endorsements from Verified Delegates on the Cryptex forum in order to proceed to the next stage.
- Upon passing the temperature check on the forum, the Cryptex Governance Team will include the proposal in the next voting cycle.
Voting Cycles
Voting on proposals that passed the temperature check via the Cryptex forum can happen on either the first or third week of each month, meaning that the drafting and publication on the forum of that proposal should happen at any moment of the previous month.
This mechanism is meant to help in keeping track of the number of proposals voted on per month as well as maintaining consistency in terms on time and help delegates and token holders prepare for each voting cycle as well as increasing participation.
Voting Phase
Once a proposal is selected for the voting cycle, the voting period begins and will last for three (3) days, the voting period must take place during weekdays.
- Depending on the nature of proposal and the type of execution that it requires in case of approval (Onchain or Offchain) the voting will be conducted of the Cryptex Governance site (Tally at time of the drafting of this document) or Snapshot.
- The Governance Team will assist Delegates and CTX holders as needed to ensure they can complete the voting process.
Voting Quorum
| Parameter | Description | Value |
|---|---|---|
| Standard Quorum | % of total supply that must vote (for, against, or abstain) for quorum to be met | 4% of total supply |
Voting Approval Threshold
All proposals require a simple majority vote to pass.
| Parameter | Description | Value |
|---|---|---|
| Simple Majority Vote Approval | Result determined by: Votes cast “For” the proposal minus Votes cast “Against” the proposal | Must result in a positive number of votes |
Execution Phase
- If a proposal fails to meet the approval threshold, it does not proceed and no action is taken.
- If a proposal passes, one of the following actions occurs:
1. Onchain Execution:
Automatic execution of the parameters defined during the configuration of the vote on the Cryptex Governance Site (Tally at time of the drafting of this document).
2. Offchain Execution:
Implemented by the relevant stakeholders, depending on the nature of the proposal and the result of the vote held on Snapshot.