🔑Governance

Governance Bodies

Home DAO will have an agile governance model that will allow it to adapt to the development of the organization. Home DAO governance will initially rely on a dual system in which decisions will be made by Community Delegates and $HOME token holders. These decisions will be ratified by a Council whose responsibility is to ensure that decisions made by the Delegates adhere to Home DAO's mission in the short and long term.

$HOME Token Holders

After the initial $HOME token distribution, token holders will be able to participate in the governance of the DAO either by creating, discussing and voting on governance proposals directly or by delegating their voting power to a proxy.

Community Delegates

Community Delegates will make governance decisions on behalf of the community members who delegate $HOME tokens to them

A member of the HomeDAO community can apply to become a Delegate by posting their profile and a valid address to which $HOME Token holders can delegate their tokens and voting power.

The requirements for becoming a Delegate will be established by Home DAO Foundation after the initial $HOME Token distribution.

Elected delegates must represent the interests of those who have delegated voting power to them and must also act under the community standards of conduct.

Council

The Council will be responsible for ratifying the decisions of Delegates and token holders, and will be the only authority within Home DAO capable of exercising veto over proposals.

The Council will consist of a group of respected individuals involved in Home DAO’s community.

Membership, removal and permanence of Council members will be determined by the Home DAO Foundation board of directors and the community delegates.

Council members cannot buy their way in by accumulating $HOME Tokens.

Proposal Processes

Home DAO governance procedures will include two types of proposals: critical proposals and non-critical proposals.

Here are some examples of critical and non-critical proposals:

Critical Proposals	Non-critical Proposals
Approving seasonal budgets for the DAO	Modifying structure of forum and communication channels.
Onboarding a new project to the DAO (tokenizing climate projects)	Approving bounties and minor spending in workgroups.
Changing the governance rules	Approving partnerships with other communities and DAOs.
Modifications in the members of the Council	Approving small self-initiated projects in the community
Hiring staff or external services for the DAO	Changes in non-critical tooling and services providers

Due to the sensitivity and context necessary to properly conduct Home DAO governance, only Delegates will be able to create and vote on both types of proposals. Token holders will only be able to create non-critical proposals, but will be able to vote directly on any type of proposal.

$HOME token holders are responsible for creating, discussing and voting on proposals primarily, either directly or through Delegates.

All proposals, critical or non-critical, must follow the processes explained below.

Non-Critical Proposals

Stage 1 - Ideation

Proposals start as a general idea that can be posted on the community's communication channels so that any member can give their opinion.

If there is sufficient interest, the author(s) are required to write a draft and tag community delegates for feedback.

Stage 2 - Feedback and Discussion

If at least 3 Community Delegates with >1% of the current votable token supply each (and who are not authors of the proposal) explicitly state that the proposed idea is suitable for discussion, and if no council member proposes to veto the proposal, the process advances to the formal discussion phase.

The author(s) of the draft should write a governance proposal in the appropriate format and post it on the Community Governance Forum, where the proposal will receive feedback during one week.

If there are no corrections or adjustments to be made to the proposal after the feedback period, it proceeds to the voting process.

Stage 3 - Voting

A governance vote is created for the proposal and all Community Delegates and $HOME holders are invited to vote on the governance platform.

The outcome of a non-critical proposal is approved if it satisfies the following quorum and approval threshold requirements:

• Quorum: 30%.

• Approval Threshold: 51%.

If a proposal does not pass, it will not be executed. And if a proposal does pass, the process advances to a waiting period before the proposal is executed.

Stage 4 - Execution Timelock

When a proposal passes, a one week period begins in which the council can veto the proposal for legitimate reasons before it is executed.

If the council does not veto the proposal, the proposal proceeds with the execution of the proposal at the end of the timelock period.

Critical Proposals

Stage 1 - Ideation

A Delegate should initiate discussion of the proposed idea in the appropriate communication channels and should invite other Delegates to express their feedback.

Stage 2 - Feedback and Soft Approval

If at least 3 Community Delegates with >1% of the current votable token supply (who are not authors of the proposal) explicitly give their approval to the idea, the process advances to the formal discussion phase.

Stage 3 - Formal Review

The author(s) of the draft writes a governance proposal in the appropriate format and posts it on the Community Governance Forum, where the proposal will receive feedback.

The operators, Council members and other individuals with the necessary level of context will review the proposal and conduct any necessary due diligence during one week and communicate their feedback to the author(s) of the proposal.

If there are no further corrections to be made and if the Council expresses no reasons to veto the proposal for legitimate reasons, the process moves to the voting phase.

Stage 4 - Voting

A governance vote is created for the proposal and all Community Delegates and $HOME holders are invited to vote on the governance platform.

The outcome of a critical proposal is approved if it satisfies the quorum and approval threshold requirements. These requirements vary depending on the subject of the proposal, the most common being the following:

Proposal Subject	Quorum	Approval Threshold
Seasonal Budgets	35%	80%
Onboarding new RWA	35%	51%
Modify DAO Roles and Responsibilities	35%	51%
Changes in the board of directors / legal entity bylaws	35%	80%
Treasury-related decisions	35%	80%

If a proposal does not pass or does not meet the quorum and approval threshold requirements, it will not be executed. If a proposal does pass, the process advances to a waiting period before the proposal is executed.

Stage 5 - Execution timelock

When a proposal passes, a one-week period begins in which the council can veto the proposal for legitimate reasons before it is executed.

In case the Council does not initiate the veto of the proposal, the proposal proceeds with the execution of the proposal at the end of the execution timelock period.

Implementation and Administration of Home DAO Governance Decisions

The on-chain governance of Home DAO will require legally valid actions to be executed by the members of the Home DAO Foundation, always ensuring the enforcement of decisions that have been approved by $HOME token holders.

The Home DAO Foundation will facilitate the administration of any governance process that requires off-chain actions in accordance with the designs of the token holders, delegates and the DAO council.

Some of the ways in which Home DAO Foundation will facilitate the governance processes of the DAO include but are not limited to:

• Moderation of governance proposals.

• Eliminating fraudulent governance proposals, or those that go against community standards or laws.

• Monitoring of votes, voting power, the votable token supply, and voting periods for purposes of determining whether quorums and approval thresholds are met or accurately reflected.

• Manually intervening in the event that DAO smart contracts suffer a bug or hack.

• Maintenance of the DAO infrastructure.

• Anything else that the Home DAO Foundation determines to be appropriate in connection with the above.

In addition to facilitating the DAO governance processes, the Home DAO Foundation will be the last body to intervene before executing any governance proposal.

When a governance proposal is approved, it will be forwarded to the Home DAO Foundation to determine whether the proposal is safe and consistent with the DAO's mission, as well as to determine whether the proposal is enforceable within the legal frameworks relevant to the DAO and the Home DAO Foundation.

• If so, the Home DAO Foundation will diligently execute the proposal.

• If not, the Home DAO Foundation will discard the proposal or limit its performance and provide a statement of the reasons.

Technical Requirements

Home DAO will require a technical toolkit to operate the governance system. There are two general approaches to such a toolkit.

The first approach is to support the governance system with out-of-the-box tools that do not require DAO operators to interact with code line interfaces or smart contracts directly. Platforms such as Snapshot or on-chain governance frameworks such as DAOhaus or Aragon are best suited to operate with this approach.

The second approach is to automate the governance of the organization through smart contracts adapted to the needs of Home DAO throughout its different stages of organizational development. This approach is more expensive and requires auditing the code implementation to avoid vulnerabilities. However, it is also possible to use audited repositories and governance contracts such as Open Zeppelin.