DAO Thoughts & Learnings 23/11

3 things I learned about DAOs this week

This week I want to highlight the Security Council setup that Arbitrum put in place for their soon to be launched DAO.

The Arbitrum Security Council is a 12 member body that can upgrade the protocol directly without the need to go to through the standard voting process. These powers are for emergency issues only and require approval by a 9 out of 12 supermajority. The council can also trigger non-emergency upgrades with a 7 out of 12 majority approval.

Voting for the Security Council happens on a semi-annual basis. The 12 members are divided into a 6 member March cohort and a 6 member September cohort, similar to how US congressional votes are divided. To be eligible for candidacy, DAO members need to be supported by at least 0.2% of all votable tokens. The 3 week voting period has an interesting twist: Votes in the first week have a 100% weight, i.e. 1 token = 1 vote. After week 1, voting weights decrease until weights hit 0 at the 3 weeks mark, i.e. 1 token = 0 vote on the last day of voting.

Removal of Security Council members may only happen under two conditions:

  • Condition 1: >10% of all votable tokens vote in favor of removal and at least 5/6 of all casted votes are in favor of removal.

  • Condition 2: 9 out of 12 Security Council members vote in favor of removal.

Seats of removed council members remain open until the seat’s next respective cohort election, unless the remaining council members vote to replace the seat at the next election, regardless of whether the seat would have been up for election or not.

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