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Governance

Overview​

Flux Finance is a decentralized lending platform governed by the Ondo DAO.

Stakeholders in the DAO — ONDO token holders — exercise control over the protocol, including economic parameters and smart contract upgrades, through on-chain governance proposals.

The DAO might also elect committees or multisigs to manage certain processes, such as updating certain economic parameters or pausing the protocol in critical times.

Governance Process​

The governance process will typically follow a two-stage process: a forum discussion and an on-chain vote.

Governance proposals will typically start with a post on the Flux Finance 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.

Once the governance proposal is finalized, you can submit a proposal for a binding on-chain vote. The DAO is a fork of Compound's Governor Bravo 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.

The DAO parameters are 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: 1,000,000 ONDO
    • Proposals will only pass if there is enough voting power to pass the quorum.
  • Timelock: 1 day
    • Successful proposals will execute after this delay period once the voting period completes.