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Governance Infrastructure & Tokenomics
At Psy we think the term “Decentralized Autonomous Organization” is a misnomer. There are no truly autonomous organizations within our industry; behind every “DAO” there are people coordinating and working tirelessly to build open and transparent financial products. A more accurate term is “Decentralized Organization”, or DO.
Nothing gets built without doers.
Within Solana Governance, a DO can control three different types of Accounts: Programs, Token Mint Authorities, and Treasuries.
1.) Programs are decentralized applications deployed on the Solana blockchain such as the Serum AAOB, the NFT creating Candy Machine, or the Mango Markets DEX.
2.) Token Mint Authorities are how tokens on Solana are created! These accounts control the process of creating new tokens.
3.) Finally, we have Treasuries which are accounts that control DO owned funds!
The PsyDO currently controls the following Accounts:
- Psy American Style Options Program
- Psy Tokenized European Style Options Program
- Psy Developer Council Token Mint Authority
- General Token Treasury
- PsyDO $PSY Treasury
- Serum Grant Treasury
Each Account owned by the PsyDO has varied governance parameters that are in-line with how mission critical the Account is. For example, the Psy American Style Options Program requires 20,000,000 PSY to create a governance proposal, and a minimum of 60% of the total PSY supply cast for vote. On the other hand, the General Token Treasury requires 62,000 PSY to create a governance proposal, and a minimum of 2% of the total PSY supply cast for vote.
Why are things this way?
The discrepancy in these parameters can be explained best through the context of governance exploitation. If a bad actor can accumulate enough PSY to propose, and pass a proposal which exploits the Psy American Style Options Program, millions of dollars of user funds could be lost and the DO could come crashing down. Yikes! This is bad and we don't want this.
Because of this, we want to make sure our Program Accounts have airtight governance parameters when compared with Treasury Accounts. Therefore our team has spent a lot of time thinking about governance!
For more information on specific governance parameters for each DO owned Account, check out our DO page on Solana Realms or our parameters page.
Governance Parameters and What They Are
- Max Voting Time: The maximum number of days DO participants can vote on the proposal.
- Minimum Community Tokens to Create a Proposal: This is the amount of governance tokens needed to propose a governance action.
- Minimum Council Tokens to Create a Proposal: This is the amount of Council tokens needed to propose a governance action. For more on Council Tokens see our Governance FAQ.
- Minimum Instruction Holdup Time: This is the minimum time that must pass before a successful proposal is executed on chain.
- Vote Threshold Percentage: The Yes vote threshold defines the number of Approve votes required to approve a proposal
- Vote Tipping: This can be set to either "Early", "Strict", or "Disabled". If set to Early, the proposal can be "tipped" (passed) as soon as there are enough Yes votes to pass the proposal. If set to Strict, the proposal can be tipped as soon as there are enough Yes votes to pass the proposal only if there is zero chance the No votes can overturn the Yes votes. If set to Disabled, the proposal cannot be tipped and executed early.
Last modified 7mo ago