Prominent Cardano-based decentralized exchange (DEX) SundaeSwap has floated its first on-chain governance proposal, developers said Tuesday. Voting on the proposal is scheduled to run until Feb. 19.
“Until now, exactly how that governance should take place has been unclear,” the proposal description reads. “SundaeSwap Labs proposes that such governance use the auditable off-chain governance technology developed in-house, as well as a set of rules and procedures by which proposals for the future of the decentralized protocol can be considered, voted on and adopted.”
The proposal determines the terms, conditions and parameters of future proposals on the SundaeSwap governance forum. Any passed procedure can be changed in the future with another governance proposal.
🗳️ Aaaaand we're live! 🎆
The first on-chain SundaeSwap governance vote is now up at https://t.co/KX3nXNtgKE submitted by @Quantumplation! 🤝
This proposal, if passed and adopted, would adopt the processes and procedures outlined here ⬇️https://t.co/o6g5dcN2a1 pic.twitter.com/cJf38PJzMB
— SundaeSwap Labs 🍨 (@SundaeSwap) February 4, 2023
As per the proposal, any wallet with a minimum of 10,000 SUNDAE can float new proposals to the SundaeSwap community after an initial “temperature check” – an initial testbed for new ideas. Proposals once floated cannot be edited.
Governance moderators will be selected by a member vote to maintain a neutral discussion on forums. Each Moderator will provide a Cardano wallet address, get listed publicly as a confirmed SundaeSwap decentralized autonomous organization (DAO) moderator and have a one-year term. However, the initial three moderators will have terms of six months, nine months and 12 months, respectively.
SundaeSwap, like other decentralized exchanges (DEX), relies on smart contracts to offer financial services to users and holds over $8.7 million in locked value as of Wednesday. On-chain governance is a type of strategic decision-making used by crypto projects wherein token holders propose and vote on changes to that project.