Decentralized governance holds amazing potential for new experiments in democratic decision-making. DAO tools coming out all carry distinct nuances that make them more or less appropriate to specific use-cases. For SZNS, the use-case focuses on NFT management.
This article dives into the proposals lifecycle in detail. All proposals by a SZNS Album move through a similar process: Submission, Voting, Verification, and Execution. There are nuances involved with each step. The goal for the SZNS platform is to provide an intuitive interface for anyone to make decisions efficiently in a trustless way.
Note: this is a follow on from the previous SZN-0 Governance post.
Step 1: Submission
Only users holding $ALBUM tokens (Album Members) can submit proposals. Submissions require a description of the intended action and often include an onchain transaction. There are two methods for Album Members to submit 1. Use a standard proposal, 2. Construct a custom proposal.
https://www.youtube.com/watch?v=b-HTcDd296U
At time of public access launch, Albums will include a set of essential standard proposals (details in a follow on post). These proposals exist in the SZNS Album interface and offer an intuitive flow for common actions. Albums need to sell, buy, distribute, and stake treasury assets. Building effective proposals in a custom way requires knowledge of smart contracts, etherscan, and public addresses (see below). Standard proposals abstract these aspects of the process (more details on proposals here).
https://www.youtube.com/watch?v=UTE4HHVK8LY
2. Custom proposals require knowledge of smart contracts to perform actions like sending, buying, selling, distributing, NFTs, and treasury assets. If the action you want to execute is not yet available as a standard proposal, Album members are able to create a custom proposal. Custom proposals are constructed in the Album’s Snapshot space and allow for Album members an interface to construct any arbitrary action. This does require significant technical expertise to construct transactions effectively, as seen in the video above (more detailed example here).
Step 2: Voting
Anyone with an $ALBUM token is able to vote on active proposals via the SZNS interface. The default voting system uses a single choice voting strategy where addresses hold voting power proportional to their token amounts at the time of the proposal submission.
$ALBUM holders can vote in the SZNS interface or click out into the snapshot page to gather more details on the proposal prior to voting.
Step 3: Verification
The verification of proposals occurs through a Reality.eth oracle after the voting period. This process requires users to stake a bond of 1 ETH that may be slashed if the outcome is not honest to the voting result. During this time users may request arbitration from the SZNS DAO in Discord (this process will be further formalized in the future).
For a proposal to be verified as valid, it must pass the Governance Rules. SZNS offers conservative default rules, but these may be modified via a proposal by the Album or changed by the Album creator before launch.
Example of verification:
https://www.youtube.com/watch?v=s4CnV5AUbrU
Step 4: Execution
The execution step occurs only after the Reality.eth process finishes. Execution is only available if the Reality.eth oracle passes positively. If the oracle is set to the result being invalid, the execution onchain is not available. Execution occurs in the snapshot interface today.
Further, there are a number of nuances for the execution depending on the proposal type. For instance, the execution of an NFT listing on OpenSea must occur before the listing date in order to function properly.
Example of execution:
https://www.youtube.com/watch?v=srwST9Ik9DE
Conclusion
SZNS Albums offer a new way to make decentralized decisions for managing NFT assets. Make sure to be informed on the various steps for each proposal when you submit them to the Album for voting.
We’re excited to empower decentralized communities. Signup here if you’d like early access.
