Governance V1: Pre-TGE
Introduction: Governance V1
XMAQUINA’s initial governance structure is designed for efficiency and agility in decision‑making while maintaining transparency and decentralization. This simplified framework, using the currently non-transferable DEUS token, enables rapid iteration and contributor‑driven innovation through proposals submitted by the Northstar Council.
At the token generation event (TGE), Governance V2 will replace this model, combining on‑chain execution with a vote‑escrowed (veToken) system. It will also open proposal submissions to DAO members, further decentralizing control as the organization matures.
Initial Governance Model
In Governance V1, the Northstar Council subDAO submits proposals to the main DAO for a standard voting process. All DEUS holders with vested DEUS tokens can participate in these votes.
Voting Process:
Proposal Creation: The Northstar Council drafts and submits a proposal to the DAO on Snapshot.
Voting Period: Voting remains open for 3 to 5 days, with the duration set according to urgency and any external timing constraints such as broker deadlines or allocation requirements.
Quorum: For a proposal to pass, at least 1% of the total liquid DEUS tokens eligible for voting must participate.
Outcome: If quorum is met and a majority votes in favour, the proposal is approved and moves to execution.
Governance Phases
Phase 1 - Ideation & Allocation Research
The ideation phase focuses on identifying and prioritizing potential treasury allocations.
Community discussions on Discord, the forum, and in working groups lead to deep‑dive research reports and analysis on potential targets. To guide the Execution Engine’s deal‑sourcing efforts, the DAO may hold weighted Snapshot votes where members rank companies for allocation. Top‑ranked companies become the primary sourcing focus, with alternatives considered if access constraints arise.
This process ensures allocation decisions are based on research, community input, and transparent prioritization.
Example: The DAO's first Snapshot prioritization vote ahead of a Genesis Auction.
Phase 2 - Draft Proposal & Scoring Committee Review
When the Execution Engine secures a potential deal with one of the top‑ranked companies from Phase 1, it is formalized into a detailed allocation proposal. This proposal includes the allocation amount, terms, strategic rationale, potential liquidity events, and timeline.
The Scoring Committee, composed of industry experts, reviews the deal and provides its assessment, including strengths, risks, and a recommended course of action. Their input is added directly to the proposal so DAO members have both the execution details and an independent expert view when it proceeds to voting.
Example: Allocation proposal for 1X Technologies.
Phase 3 - Proposal Submission & Voting
Once the allocation proposal is finalized with all details and the Scoring Committee’s assessment, the Northstar Council submits it to the DAO for voting on Snapshot.
Voting remains open for 3 to 5 days, with the duration set based on urgency and any external timing constraints such as broker deadlines or allocation requirements. A quorum of 1% of total liquid DEUS tokens eligible for voting must participate for the vote to be valid.
If quorum is met and a majority votes in favour, the proposal is passed.
Phase 4 - Execution
When a proposal passes, the DAO’s Execution Engine carries out the approved deal or allocation and manages its ongoing operations. This includes: • Finalizing contracts and compliance with the intermediary • Coordinating legal and treasury operations for the transaction • Documenting the transaction flow with a transparent paper trail for auditability
All treasury activity and asset positions are tracked for DAO‑wide visibility on the DAO Portal.
The DAO's Three Week Governance Cycle
While governance actions generally follow the same phases, timing is flexible and depends on the complexity and urgency of each proposal.
Week 1 (Day 1-7): Community Ideation & Research
Week 2 (Day 1-7): Proposal Drafting & Scoring Committee Review
Week 3 (Day 1-5): Proposal Submission & Voting
Week 3 (Day 5+): Execution Phase
Transition to Governance V2
At the token generation event (TGE), the DAO will transition to Governance V2, introducing a vote‑escrowed (veToken) model. This upgrade will allow all members to submit proposals and will further decentralize decision‑making as the DAO grows.
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