We’re excited to announce the launch of the Ondo DAO!
The Ondo DAO is live and will initially be responsible for the governance of Flux Finance, a newly announced decentralized lending protocol supporting both permissioned and permissionless tokens. The Ondo DAO and Flux Finance were both initially developed by Ondo Finance Inc.
Stakeholders in the DAO—ONDO token holders—will exercise control over the protocol, including over economic parameters and smart contract upgrades, through on-chain proposals. The ONDO token is currently non-transferrable, but token holders can nonetheless use their locked tokens to vote.
From a technical perspective, the DAO is a fork of Compound's Governor Bravo smart contracts and uses Tally to manage the on-chain voting process. Voting power is based on ONDO token ownership, and token holders can delegate their voting power to other wallets.
Governance will typically follow a two-stage process: a forum discussion and an on-chain vote.
Proposals will typically start with a post on the Governance Forum. The post, though optional, is strongly encouraged. Feedback from the community and team will materially increase the chances of a successful and well-aligned governance proposal. Anyone can post and contribute to the discussion on the forum.
After a proposal comes the binding part of governance: on-chain voting. Anyone with sufficient tokens can put a proposal up for vote, and successful proposals will be automatically executed.
The DAO parameters will initially be set as follows:
Proposal Threshold: 100,000,000 ONDO
- To submit a proposal, you need to have this much voting power (directly and/or delegated to you). This rule is necessary to reduce spam or malicious proposals.
Voting Period: 3 days
- Once the voting period is live, people will be able to cast votes during this period, after which the proposal becomes binding and can be executed.
Quorum: 10,000,000 ONDO
- Proposals will only pass if there are enough voting power to pass the quorum.
Timelock: 1 day
- Successful proposals will execute after this delay period once the voting period completes.