Governance
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Liqwid DAO is a community of members that propose improvements to the Liqwid protocol and function as a Decentralized Autonomous Organization via onchain delegation, staking and proposal voting. It functions like a general assembly, where all shareholders of a corporation can submit proposals and vote on changes. LQ tokens that have been staked (deposited in a governance smart contract) unlock 1:1 voting power in the DAO. Each user has the choice to vote themselves or delegate their voting power to a Cardano wallet of their choosing. *Only LQ tokens staked in the Liqwid DAO's Agora smart contract instance can use their voting power to cast a vote.
Proposal topics can range from new market launches or any other protocol parameter update. The Liqwid DAO also votes to determine the use of the treasury to finance improvement of the protocol or community ecosystem.
Governance actions and updates in the Liqwid protocol are proposed and voted on by LQ governance token holders, set in motion through specific on-chain mechanisms; Agora governance module (including delegation and Timelock) and the LQ governance token. Collectively these on-chain mechanisms enable the Liqwid community to delegate voting power, propose protocol changes, vote and execute updates via the Governor contract. Liqwid Improvement Proposals (LIPs) can modify the protocol's economic or governance parameters, whitelist new markets, or introduce completely new features to the protocol.
The use of the DAO is decided by Liqwid community members. Community members are empowered to introduce Liqwid Improvement Proposals (LIPs) to improve the protocol or grant proposals to build products and integrations for Liqwid ecosystem users.
Proposals are submitted and discussed in the Liqwid governance forum. After sufficient discussion and feedback a consensus is reached and the proposals move to onchain voting.
“Liqwid Improvement Proposals” (LIPs) are a path to change the functioning code, decided on by the community of LQ voters.
A dedicated governance forum has been setup for the LQ community to voice governance ideas and collectively decide the future of Liqwid.
You can participate in any active vote by voting directly or delegating your voting rights to the Cardano address of your choice. If you receive voting right through delegation, you can vote by using the delegated voting rights.
Decisions are made based on LQ stake-weighted voting. Updates are executed when 50.0001% of the votes submitted are in favor of the proposal.
Note: The total voting rights correspond to the total LQ token supply issued at the time of the vote snapshot, deducted from the DAO treasury LQ tokens.