Governance - DAO Proposal Process

Proposals will first be submitted to the Community Council for consideration before being submitted to the DAO for discussion and a vote. Proposals, in the Community Council’s discretion, can follow either the normal or expedited approval process. Voting on the proposal will be subject to the voting requirements in the Constitution and the quorum requirements.

Submitting Proposals

Holders of DGEN are encouraged to discuss any potential proposal in the Knights of Degen official discussion forum, Discord, to gain support or refine the potential Proposal before submission to the Community Council.

Once a holder of DGEN is ready to submit a Proposal to the DAO for consideration, the Proposal must first be submitted to the Community Council for approval before being considered for adoption by the DAO.

In the event the Community Council determines not to approve a Proposal, the Proposal will not be submitted to the DAO for consideration unless the Holder submitting the Proposal elects to use the Community Council override process. Under this process, the full DAO may override the Community Council’s denial of a Proposal and thereby pass the Proposal. To do so, the voting will follow the Normal Proposal Process below except the DAO must pass the override Proposal by a voting margin of three-quarters (75%) of the votes cast.

If a Proposal is rejected by the Community Council, the Community Council must provide reasoning to the DAO. The Holder is encouraged to discuss the Proposal with the community to gain support or refine the Proposal before resubmission.

Normal Proposal Process

Once a Proposal is approved by the Community Council for submission to the DAO, the Proposal will follow the steps set forth in this Section.

Governance Cycle The governance cycle for the DAO is one month and begins on the 1st of the month and runs through to the last day of the month.

Submission to the DAO Any Proposal that is approved by simple majority by the Community Council during a given Governance Cycle will be offered to the DAO for consideration at the beginning of the next Governance Cycle. During the intervening time period, the Holder proposing the Proposal must work with the Community Council to ensure the Proposal is set forth in an appropriate written format for consideration by the DAO.

Discussion by the DAO At the beginning of each Governance Cycle, any Proposal that was approved by the Community Council in the previous Governance Cycle will be offered for discussion by the DAO. The written Proposal will be posted in the Discord to discuss the submitted Proposal. Discussion will be open on each Proposal for one full Governance Cycle (“Discussion Period”).

Submission for Vote During the Discussion Period, the Holder submitting the Proposal must decide whether to move forward with a vote by the DAO on the Proposal.

The written Proposal offered to the DAO at the beginning of the Discussion Period may not be revised before a vote by the DAO. In the event the Discussion Period necessitates changes to the Proposal, the Proposal should be withdrawn and resubmitted to the Community Council for consideration.

Voting on a Normal Proposal will begin when the Holder submitting the Proposal decides to move forward with a vote by the DAO on the Proposal.

The vote will be open for 72 hours.

Approval Thresholds Proposals submitted to the DAO require 60% or more of votes cast during the voting period to be approved by the DAO.

Expedited Proposal Process

If the Community Council, in its sole discretion, deems that a Proposal should be considered on an expedited basis (an “Expedited Proposal”), the Proposal will follow the steps set forth in this Section.

Submission to the DAO Any Expedited Proposal that is approved by simple majority by the Community Council will be offered to the DAO for consideration as soon as practical.

During the intervening time period, the Holder proposing the Expedited Proposal must work with the Community Council to ensure the Expedited Proposal is set forth in an appropriate written format for consideration by the DAO.

Discussion by the DAO Once the written Expedited Proposal (“Written Expedited Proposal”) is posted in Discord, the discussion will be open on the Expedited Proposal and last for 48 hours (“Expedited Discussion Period”).

Submission for Vote Following the Expedited Discussion Period, the Holder submitting the Expedited Proposal must decide whether to move forward with a vote by the DAO on the Expedited Proposal.

The Written Expedited Proposal offered to the DAO at the beginning of the Expedited Discussion Period may not be revised before a vote by the DAO. In the event the Expedited Discussion Period necessitates changes to the Expedited Proposal, the Expedited Proposal should be withdrawn and resubmitted to the Community Council for consideration.

Voting on an Expedited Proposal will begin 48 hours after being submitted to the DAO for the Expedited Discussion Period.

Approval Thresholds Proposals submitted to the DAO require 60% or more of votes cast during the voting period to be approved by the DAO.