7️⃣Proposals and holding of votes
7.1 How a proposal may result in a MIP
A proposal will be put up for an official vote by a moderator (as referred to in Article 6.5) and result in a MIP, provided that the following four conditions have been satisfied:
The proposal does not require input through one or more MPOLLs, in which case the necessary MPOLLs must be completed first, ref. Article 6.4.
All conditions in Article 7.2 are satisfied.
The proposal has been subject to discussions for the relevant discussion period as set out in Article 7.3.
The proposal has obtained the necessary percentage of Governance Forum poll votes cast as set out in Article 7.3.
If the abovementioned conditions have been satisfied, the proposal shall proceed to a vote in accordance with Article 7.4.
7.2 Conditions for a proposal to be published
In order for a proposal to be published to the proposal category of the Governance Forum, the proposal must as a minimum include information on the following:
Title. A clear and informative title of the proposal, without any numbering of the proposal. The moderator will add a number to the MIP if voting commences.
Authors and contributors. The name of the author(s) and other contributor(s) to the proposal (to the extent applicable).
Status. Information on the progress stage of the proposal and the duration of the discussion period (within the parameters set out by the Constitution). This section should be updated by the author or the Governance Forum moderator(s) when, and if, a proposal moves to a vote, in addition to when the vote is concluded.
Summary. A brief summary of the key information in the proposal, including information on what is proposed and what it will entail for MC DAO.
Specification of the proposal. A thorough in depth description of the proposal, including explanation of the changes should the relevant proposal be implemented. If applicable, this section should also refer to the outcomes of any MPOLLs held before the proposal.
Motivation. Explanation of why the author(s) believes the proposal should be implemented.
Rationale. An elaboration on why the proposal should be adopted considering both the pros and cons of the proposal. This can for instance be done by answering questions that the author anticipates may be asked as a result of the proposal.
Budget. Details on the required costs that will or may be incurred in order to implement the proposal, in addition to expected future costs as a result of the proposal being implemented (if any).
Poll. A Yes/No poll to gauge community sentiment as to whether a proposal should proceed to a vote or not.
Copyright. The following sentence shall be added: “Copyright and related rights waived via Creative Commons CC0”.
A proposal which directly conflicts or impacts a proposal that is active and subject to a discussion or voting period may not be published until after the active proposal has been concluded.
7.3 Discussion period and poll to gauge sentiment
7.3.1 Duration and facilitation of discussions
In the event that a proposal is published in the proposal category of the Governance Forum, the discussion time for the proposal shall have the length referred to in Articles 7.3.2-7.3.4 (as applicable).
A general announcement on a new proposal should, as soon as practicable, be made available on all appropriate community channels by the contributors authorized to handle such channels, enabling all community members to become aware of the new proposal in order for them to share their views on it.
It is the proposal author’s responsibility to obtain engagement for the proposal. The author is encouraged to ensure that questions asked in connection with the proposal are responded to.
7.3.2 Ordinary discussion time for proposals
Unless otherwise stated in the Constitution, a valid governance proposal approved by a moderator shall enter into a 7 day review and discussion period in the proposal category of the Governance Forum, counting from the time it is published.
7.3.3 Qualified discussion time for certain proposals
Governance proposals concerning the following matters shall have a 14 day review and discussion period in the proposal category of the Governance Forum, counting from the time they are published:
Changes to set token distributions.
Additions or removal of utilities relating to the MC Token.
Conclusion of any Staking program implemented and changes to any Staking program implemented which take effect whilst an existing Staking program is active.
Termination or amendment of material conditions of any agreements entered into by a legal entity acting for and on behalf of MC DAO or a Sub-DAO or by a contributor acting for and on behalf of MC DAO or a Sub-DAO.
An asset transfer or series of asset transfers executed in conjunction with each other that exceed 20% of the treasury value.
7.3.4 Extra qualified discussion time for certain proposals
Governance proposals concerning the following topics shall have a 1 month review and discussion period in the proposal category of the Governance Forum, counting from the time they are published.
Formation or dissolvement of a Sub-DAO.
Amendments to the Constitution.
Liquidation and dissolvement of MC DAO and its assets.
7.3.5 Poll to gauge sentiment
25% or more of the votes cast in the poll (ref. Article 7.2 (i)) must, by the end of the discussion periods reflected in Articles 7.3.2 to 7.3.4 (as applicable), have voted “Yes” in order for the proposal to proceed to an official MIP vote. If less than 25% of the votes cast have voted “Yes” by the end of the discussion periods reflected in Articles 7.3.2 to 7.3.4 (as applicable), the proposal will not proceed to an official MIP vote. If a poll vote is cast in violation of the applicable Governance Forum rules and guidelines (including rules on manipulation of votes) it will not be counted for.
7.4 Voting on a MIP
7.4.1 How votes are held
Voting takes place at MC DAO’s Snapshot address or at another on-chain voting solution as may be decided and implemented by MC DAO.
MC DAO may decide that votes shall be shielded (hidden) through encryption during the voting period, making others unable to see how many Tokenholders have voted and what votes were placed until the vote has ended.
A general announcement on a new vote and its outcome shall be reflected on the Governance Forum and as soon as practicable made available on all appropriate community channels by the contributors authorized to handle such channels.
7.4.2 Voting rights
Persons that were Tokenholders at the time of the last recorded Ethereum block number prior to the creation of the vote at Snapshot, or on another on-chain voting solution as may be decided by MC DAO, and that held their MC Tokens in a wallet on the Ethereum blockchain or staked their MC Tokens in Merit Circle smart contract systems, shall have the right to attend a MC DAO vote, either themselves or through delegation by their choice in accordance with Article 8 (to the extent such delegation system is implemented by MC DAO). Voting may take form by way of a MIP or MPOLL (MPOLLs shall however only be conducted through Snapshot).
Each MC Token carries an equal number of votes, except for if otherwise stated in the Constitution or decided by MC DAO in connection with Staking.
Voting rights may not be exercised for MC Tokens which belong to MC DAO, its Sub-DAOs or any legal entity acting for and on behalf of MC DAO or one of its Sub-DAOs. The wallets that such MC Tokens are held through shall be disclosed. Such MC Tokens shall not carry any voting power and do not count towards quorum requirements.
7.4.3 Duration of votes
A vote shall have a duration of 2 days, except for a vote relating to matters referred to in Articles 7.3.3 and 7.3.4, which shall have a duration of 4 and 7 days, respectively.
If during the voting period it becomes impossible to cast a vote as a result of a wide-ranging non-operability of the voting software or the Ethereum blockchain, the vote shall be re-done.
7.4.4 Relevant quorum and majority requirements
For any proposal to pass, relevant quorum and majority requirements must be met, ref. Articles 7.4.5 to 7.4.10.
Any MIP that either fails to (a) meet the quorum requirement or (b) obtain the relevant majority requirement shall be considered to be a failed proposal and not constitute a DAO Consent. However, if a vote does not form a quorum pursuant to Articles 7.4.5 to 7.4.6 (as applicable), a repeated vote may take place if the author(s) of the proposal consents and the proposal received more votes for than against during the vote that did not meet the quorum requirements.
7.4.5 Ordinary quorum
Subject to Article 7.4.6, a quorum for a vote on a proposal is reached if voting power equalling 1% or more of the circulating supply of MC Tokens, at the time of the last recorded Ethereum block number prior to the end of the most recent quarter (first quarter of a year ending at 24:00 CET on 31 March) preceding the creation of the relevant vote, has been used to vote on the relevant proposal.
7.4.6 Special quorum
A quorum for a vote on a proposal concerning one of the matters referred to in Article 7.4.8 (Qualified majority matters) or Article 7.4.9 (Extra qualified majority matters) is reached if voting power equalling 1.5% or more of the circulating supply of MC Tokens, at the time of the last recorded Ethereum block number prior to the end of the most recent quarter (first quarter of a year ending at 24:00 CET on 31 March) before the creation of the relevant vote, has been used to vote on the relevant proposal.
7.4.7 Simple majority requirement
All proposals require a simple majority (more than 50%) of the votes cast in order to succeed, unless otherwise stated in the Constitution and the relevant smart contract system (to the extent applicable).
7.4.8 Qualified majority matters
Decisions by MC DAO relating to the matters listed in letters (a) to (e) in Article 7.3.3 shall require the supporting vote of 75% or more of the votes cast in order to succeed.
7.4.9 Extra qualified majority matters
Decisions by MC DAO relating to the matters listed in letters (a) to (c) in Article 7.3.4 shall require the supporting vote of 90% or more of the votes cast in order to succeed.
7.4.10 Prohibited matters
Notwithstanding anything to the contrary, a decision which clearly results in one or more Tokenholders obtaining an unreasonable benefit at the expense and detriment of other Tokenholders shall be prohibited.