Governance - Community Council

Governance – Community Council

The DGEN DAO’s initial governing body is the Community Council, responsible for administering the proposal process, coordinating governance operations, and serving as signer for DAO-controlled multi-signature wallets as described in the Royal Exchequer section. At launch, the Community Council will consist of four elected members. The council structure may be expanded by governance over time.

Qualifications

To be eligible to serve on the Community Council, a candidate must:

• Hold at least one Knight of Degen NFT (“Holder”)

• Must be elected pursuant to the election process described below.

If a Council member no longer satisfies the Knights of Degen holder requirement, they can be removed immediately. A member may avoid immediate removal once during their tenure by re-acquiring a Knights of Degen NFT within 24 hours.

Initial Community Council Election

As part of the initial governance activation following the ratification vote, the DAO will elect four individuals to form the Initial Community Council.

Nomination Process

• Any eligible individual may submit their candidacy during the nomination window announced by the DAO.

• Each candidate nomination is submitted as its own standalone governance proposal.

• Candidate proposals are posted for community discussion prior to voting.

Voting Format

• Each candidate proposal is voted on independently.

• A candidate is considered approved only if their proposal receives at least 60% “For” of votes cast on that proposal during the voting period.

• Voting occurs via the DAO’s designated voting platform (e.g., Snapshot) and follows the voting window.

Seat Allocation

Because multiple candidates may be approved but only a fixed number of seats exist, the election uses the following seat allocation rules:

• The Community Council has four available seats

• Any candidate receiving less than 60% “For” votes does not qualify for a seat.

• If the number of qualifying candidates is four or fewer, all qualifying candidates are elected.

• If the number of qualifying candidates exceeds four, the four candidates with the highest total “For” vote count are elected, and the remaining qualifying candidates do not receive a seat.

Council Roles

After the Initial Community Council is elected, the Council will select internal roles (e.g., Chair, Treasurer, Secretary) through a Council vote. Role responsibilities are operations and do not change voting power.

Regular Elections

Every year following the ratification of this Whitepaper, the DAO will hold an election for a number of spots on the Community Council equal to the number of Community Council members that have reached the end of their 24 month term, or as noted above.

Special Elections

There may be instances in which a member of the Community Council is removed prior to the completion of a full term. In addition, there may be instances in which a member of the Community Council chooses to voluntarily step down from the Community Council.

In the event of an opening on the Community Council, the Community Council will hold a special election (a “Special Election”) as soon as practical. Prior to a Special Election, the Community Council must solicit Holders who would like to run for election. At least one week prior to a Special Election, the Community Council must distribute a list of holders running for election.

In a Special Election, Holders will be entitled to vote for one individual. Voting power will be determined pursuant to the Constitution.

The individual that receives the most votes will be elected to the Community Council for the remainder of the outgoing Community Council member’s term.

Term

Once elected, members of the Community Council will serve for a term of 24 consecutive months unless they fail to meet the Qualifications in Section 7.

Removal

A member of the Community Council may be removed from the Community Council for any reason by a vote of five Community Council members.

Additionally, a member of the Community Council may be removed from the Community Council pursuant to the DAO Proposal Process. When the Community Council considers a Proposal to remove a Community Council member, the Community Council member at issue may not vote on the Proposal.

Term Limits

There are no term limits for the Community Council. A member may be re-elected to membership an indefinite number of times.

Chair of the Community Council

Following each Regular Election, the Community Council will elect a Chair of the Community Council. In that role, the Chair of the Community Council will be the outward face of the Community Council to the DAO and will organize and conduct Community Council meetings.

DAO Treasurer

Following each Regular Election, the Community Council will elect a Treasurer. In that role, the Treasurer will assist the Community Council and the DAO as a whole in meeting its financial and reporting obligations.

Secretary

After each meeting of the Community Council, the Secretary must provide a summary of proposals considered, the Community Council’s decision, and the margin of the Community Council’s vote on the Proposal.

Meetings

The Community Council will meet at least once during each Governance Cycle unless the Community Council agrees that a meeting is unnecessary or impractical for that Governance Cycle. In the event the Community Council is unable to meet during a given Governance Cycle or has not met quorum, the Community Council should convene as soon as practical.

Unless agreed otherwise by the Community Council due to exigent circumstances, for a proposal to be considered by the Community Council, the proposal must have been provided at least 24 hours prior to its scheduled meeting.

Voting

Each Community Council member will be entitled to one vote on any proposal. A majority of attending Community Council members is necessary to approve or deny any proposal.

Improper Proposals

As set forth in the Constitution, a proposal cannot request that the DAO or someone acting on the DAO’s behalf do anything illegal, immoral, or unethical. The Community Council may consult with a third-party, including legal counsel, to assist in this determination.

Approved Proposals

For any approved proposals, the Community Council must assign one member of the Community Council to serve as the point person for the approved proposal and help shepherd the proposal through the DAO governance process. This Community Council member will also work with the Holder or Holders making the proposal to ensure the Proposal is set forth in an appropriate written format for consideration by the DAO.