DAO Governance

The rise of DeFi (decentralized finance) in recent years has opened the door for more sophisticated open-finance systems and tools that don’t rely on banks and other legacy systems. We planned to evolve WAFI into a complete Open Stack Decentralised Autonomous Organisation.

So how does WAFI governance works:

1. Members of DAO

   To be a member of DAO one needs to lock their WAFI tokens for minimum period of 6 months, in turn they will receive gWAFI tokens which have the power create proposals and even vote on proposals on the DAO. In Addition, Member of DAO will receive additional staking rewards for locking their tokens for longer period of time.

2. Proposals

   Any Member of the DAO can create a permissionless proposal over our DAO Protocol if he/she has more than 10,000 gWAFI. Proposals can be made on the following:

   1. Approval of Lending Rates

   2. Approval of Validators and Master Validators

   3. Approval of Partner Project Native Tokens as Collateral

   4. Approval of Non-Collateral Lending Proposals

   5. Approval on Community and Incentivization Rewards

   6. Updates to the Roadmap

3. Voting

   Any proposal made on DAO would be live for 7 days and would be communicated through all the available channels to the DAO members. A Proposal would be accepted if it receives more than 51% of favourable participation votes after completion of the 7 days.

4. Governance Charter

   A Detailed Governance Charter would be proposed and published as per the roadmap and would be put to vote among the members of DAO for approval, which will contain the detailed rules govern the DAO, including management, and dispute resolution mechanism.

5. DAO Treasury

   20% of the fees earned by the Watcher Finance Ecosystem would be accumulated to the DAO treasury, which would be utilised to buy and permanently lock WAFI/USDC Liquidity tokens, there by providing a permanent liquidity to the WAFI token including reducing the WAFI supply from the market.