Governance Group Season 2 disscussion

Title: Governance Group Season 2

Authors: Marcus

Date Created: 2023/03/04


This is an Season 2 proposal for the Governance Group, the group responsible for LXDAO governance

The main responsibility is to study and optimize LXDAO’s governance process, incentive mechanism, point management, etc.

Proposal Description

This is the proposal for LXDAO Governance Group S1

Governance Group Season 1

What we did in the last season

Last season we set out 5 strategic goals

  • Optimize the LXDAO governance structure
  • Tokenomics Design
  • Support the creation of more proposals and projects
  • Whitepaper writing
  • Introduce an investor role within the DAO

Optimizing the LXDAO Governance Architecture

Updated the ‘How does LXDAO work’ governance document to help each joining buidler understand the LXDAO governance process

How do we work?

A distribution document has been designed to help project teams and workgroups to clearly allocate points

About Proposal treasury expenditures and revenue distribution

The LXDAO Newcomer’s Guide was developed to help many newcomers learn about LXDAO in the first place
Getting started with LXDAO

Tokenomic Design
There are several discussions on token economic models, exploring the concepts underlying token models

LXDAO Tokenomics

Designed the base rules for LXP (of course, this will have to wait for more optimizations)

LXP Rules

Support the creation of more projects and proposals

  • HashDNA#007 [Snapshot]

  • Accounting Group

[About the determination of the accounting Group]

  • Operation Group

[Operation working group proposal discussion]

Assist with operational work

The operations team has not yet been formally established, and the governance team has taken on some of the operations work

What we didn’t do

  • The complete of LXDAO Whitepaper
    (This is related to the overall strategy of LXDAO, which needs to be optimized slowly during development)
  • Designing a mechanism to introduce investor roles in the project development
    Investors are also a key part of the project and play a critical role in getting the project off the ground. In the first quarter plan, we mentioned a plan to design an investor role in the project, but it did not go forward effectively


During these three months of governance, we also found many problems

  1. Buidler voting is not active
  2. Inadequate orientation mechanism for newcomers
  3. Contributor incentive program is not obvious
  4. onboarding mechanism needs to be improved
  5. Token economy design is not sufficiently detailed

The governance team will address these issues in the second quarter

Scope of work

Scope of work for the governance team

  • Optimize the governance process and improve the governance experience of DAO members
  • Design a complete point management system
  • Design incentive mechanism to improve the activity of DAO members and make members and LXDAO have a stronger binding relationship
  • Daily Governance tasks
  • Acceptance of the work of the induction committee and Optimize the onboarding process according to the onboarding Season 2 plan
  • Research other DAO governance issues

Goals for the season 2

Based on the results of the second phase of the strategy session [LXDAO Strategy discussion for phase 2]
We set the following goals for the second quarter for the Governance Team

  • Optimize the governance model, upgrade to Governance Model 2.0, and align with the culture of the open source community
  • Develop a complete LXP documentation and incentive program with the goal of ‘sustainability’
  • Explore Web3 educational products in governance to help most people understand Web3
  • Adhere to the ‘LX’ consensus to support and build more conscientious products and working groups

Working Rules

  • Hold weekly group conference calls and document the meetings
  • Research and explore a better voting system based on the DAO and the community, and produce documented outputs on the voting system
  • Review and actively participate in LXDAO proposals and help members with proposal optimization


12 Weeks , based on proposal approval time

Treasury Expenditures

Based on the proposed spending plan for the first quarter prevailing, we ended up with the following actual personnel and expenses

The roles we need in the new season of budget spending

  • 1 Governance PM
  • 1 Minute Taker and Coordinator
  • 1 Token Economy Designer (to design the token economy model and incentive rules)
  • 3 Researchers (around governance structure)

According to Various types of Web3 role salary research, the salary structure for each role is designed as follows

If you are a Core member, the LXP applied for will be automatically assigned to the bounty as part of your salary compensation.

Revenue Distribution

The governance team does not have a significant financial output

Key result

Optimization of the governance model

  • Ensure the transparency and efficiency of the governance process
  • Ensure the increase of voting activity, optimize the notification mechanism, etc.
  • Optimize the allocation process
  • Design a complete retirement system
  • Produce at least 3 research papers on the optimization of the governance model

LXP documentation and incentive program

  • Optimize the existing LXP rules, usage, application process, reference scope, etc., and produce them in the form of documents
  • No less than 3 research papers on incentive plans

Web3 Educational Products in Governance

  • Exploration of Web3 governance products based on strategic plans
  • Prototype diagrams

Support the creation of additional products and project teams

  • Coordinate various project teams and working groups
  • Support the creation of operational teams
  • Support the birth of additional products

The Governance Group is recruiting partners, if you are interested, you are welcome to apply to join after reading this article carefully

quick question
what is “a retirement system”?retirement for a certain project or member

The retirement system is to design a complete retirement process, currently, our LXDAO retirement process is done through a collective vote
Now every buidler is enthusiastic and active and is great
However, as LXDAO grows, there are a few things that may happen in the future

  1. some buidlers violate the LXDAO consensus by not being ‘LX’ and doing something bad
  2. they are inactive for a long time and don’t care much about DAO governance and voting
  3. due to some circumstances, voluntarily request to quit
    The Buidler card of each buidler is something particularly important, it determines the direction of the whole LXDAO
    So, what I want is to design a complete retirement process in the Season 2

I want to understand if the framework of governance is not clear to everyone, I am going to make a flow chart and diagram here

Some ideas for S2:

The Governance Group is a public utility for LXDAO, the most important Working Group. I think it should include Onboarding and Finance works here as well.

We could write some posts and release them on the education platform.

I would not suggest having a rigid role design because we cannot predict what may happen in the future or what specific tasks we may need. Instead, I recommend establishing general roles with flexible bounties (PoW) for each specific task. Having strict roles and budgets may deter new contributors from joining the group and making the contributions we require.

As per the proposal from the Expert Working Group, we could set up a few regular workers and a bounty pool.

To encourage routine participation, regular workers must attend weekly meetings, vote on governance proposals, and complete assigned tasks to receive tokens as a reward. For specific tasks, we can allocate budgets to create bounties that will be shared among governance group builders based on PoW.

To begin, we require the following:

  • One Governance Group Leader: Responsible for managing routine work, leading meetings, voting, and providing weekly reports to the community.
  • 5 Workers: Responsible for conducting research, participating in governance-related tasks, attending meetings, and sharing ideas. They will assist the leader in achieving the goals of the Governance Group.

The leader will need to commit at least 15 hours per week, resulting in a basic salary of 1500 (U+LXP) per month. Workers are expected to work a minimum of 10 hours per week, resulting in a basic salary of 1000 (U+LXP) per month. As there will be bounty tasks available, basic salaries can be lower. For example, the leader’s basic salary could be 1200 (U+LXP) while the workers’ basic salary could be 800 (U+LXP). Thus, the budget for basic work will be 1200 + 4000 = 5200 (U+LXP).

For specific tasks such as Tokenomic Design, Onboarding Design, Voting System Design, etc., we will create bounty tasks that will be led by Governance Group workers with builders who are interested in or capable of participating. For instance, in the first week, we need to design a new onboarding process, and after discussing it, we believe that offering 2000 (U+LXP) will attract builders to participate. We can use the PoW system to share rewards each month once the task is completed. For this, a budget of 7800 (U+LXP) seems reasonable, bringing the total budget for the Governance Group to 13000 (U+LXP) each month, so 39000 (U+LXP) for the whole season.

Not quite understand this one, but we don’t need to care about Core Team. There might be no basic salary for Core Team anymore.

I would like to nominate myself as the governance group lead for S2.

We need to have a challenge feature for the proposal.

First discussion framework

We received a lot of feedback after proposing the Idea of governance group season 2
We will update this post with

There are some ideas about LXP and token:

1. LXP management

What is LXP

LXP (LXPoint) is a temporary proof of work in LXDAO. Later LXDAO will issue Token, named LXT or LXC, Token is the main governance tool of LXDAO later. Before issuing Token, LXP is needed to record the workload of Builder and community members.

How to get LXP

Builder and community members get LXP by contributing to LXDAO. Activities that can be participated in are as follows:

  • Participate in LXDAO’s R&D projects, such as MyFirstNFT
  • Participate in working groups, such as governance group
  • Join LXDAO’s core team
  • Other temporary tasks, such as participating in Community Call

In these activities above, for tasks that require more time and energy input, such as development, writing, design etc., Builder can decide whether to take stable coins or LXP by themselves. For other tasks, priority is given to issuing LXP.

More detailed task description can be seen reference link.

The current LXP is recorded through Notion. Builder and community members have difficulty seeing their own holdings of LXP clearly. Contracts can be deployed on Polygon chain to record and issue LXP. This can reduce the cost of recording LXP and facilitate recording the time each Builder holds LXP.

Each month there will be dedicated personnel who will publicize the statistics of LXP and then record them into contracts.

How to use LXP

LXP represents proof of workload for Builder or community members. LXP cannot be transferred and can only be used by oneself. After holding LXP there are two uses:

  • Exchange stable coins: LXDAO can regularly open up exchange of LXP for stable coins (USDT、USDC、DAI) from treasury. 1L XP = 1 stable coin To ensure that treasury funds are not squeezed out each time exchange is opened up exchange ratio cannot exceed 30% of holding LPX
  • Get Token airdrop: Later LXDAO will issue Token holders of LPX can get airdrop And will calculate holding time of LPX when holding same amount of LPX longer holding time more airdrop you get after getting airdrop LPX will be destroyed LPX completes mission later incentive for Builder and community members directly use Token

Exchange stable coins can be done in contracts Later airdrop can be based on snapshotting contracts then calculate airdrop ratio

2. Token governance

LXDAO’s Token can only be used for community governance without any other functions.

As long as you hold Token you can participate in community voting Because there are also Builders who hold SBT in LXDAO when voting need to map according to certain way:

  • Community members who only hold Token will vote according to proportion of holding Token
  • Each SBT has different levels these levels need to keep making contributions in LXDAO to upgrade
  • Different levels of SBT correspond to different amounts of Token specific amount needs to wait until after token issuance before determining
  • Finally map all voting rights into proportion of token





1 Like

Season 2 Summary

Our main goals for Season 2 are to improve the coordination of activities within LXDAO as a whole, improve role and member holder accountability, better coordinate potential partnerships, improve talent development pathways, increase activity among existing members, and design a contribution engagement approach to help outside members better understand LXDAO and participate in contributions. In Q2, we look forward to further educating and engaging members in a more flexible, efficient and effective way.

During the second quarter, our plan is to

  • Weekly governance calls

  • Weekly DAO research assignments

  1. Designing better governance mechanisms (voting, participation, retirement)
  2. Design a better way of managing people and Onboarding
  3. Optimize existing organizational structure (working groups, project teams)
  4. Token economics and compensation management
  5. Proposal guidance, ongoing governance coordination tasks
1 Like

The organization’s improvement is updated.

For a better decentralization structure, the LXDAO core team will be restructured. The new core team will be PMs and WG Leads, and it will be a channel for quick communication and decision-making. So they might not get a fixed income of LXP, but they can get from Projects and Working Groups for sure.

@Muxin_LXDAO is working with @Marcus and @wodeche on it, will be available soon.

At the moment, we haven’t discussed this part yet, and I suggest we skip this one. After we got a lot of stablecoins in treasury for at least 18 months runway, we can discuss if we could make an exchange for it. The stablecoins should be used for future development first.

ATM, this belongs tokenomics design, we haven’t discussed this part yet, and will be well-designed in Stage 2. So the final tokenomics may not fully follow this one, it’s complex.

Onboarding Design

The current onboarding flowchart we are using

The main problems of Onboarding mechanism currently exist

  1. onboarding mechanism is not open enough, as member status of people how to join and contribute
  2. each time to take the audit system, human way of mobility is poor
  3. the audit criteria are different, and the committee members are particularly relevant and do not have enough quantitative criteria

Improvement direction

  1. increase Member contribution plan, increase to Member’s salary management
  2. add a bounty task version and provide a certain number of bounty tasks for Members to choose every month
  3. set the conversion threshold from Member to Buidler
    Retain the original way of joining, omit the onboarding committee, and adopt the buidler nomination system, to ensure that you understand the LXDAO governance process and have the intention to contribute actively.

New draft process design

Benefits of the new approach.

  1. increase the influence of LXDAO, nab new
  2. raise the threshold and ensure the quality of buidler by doing tasks
  3. avoid the tedious process, Members can also contribute, without first becoming a buidler
  4. automate the process

Problems to be solved by the new process

  1. Member salary management system, including member information management, ranking system, conversion threshold, etc.
  2. how much budget is given to Members (LXP) every month
  3. the construction of bounty task, bounty task is still relatively small in DAO (most of them belong to public positions) Dework or build a system by themselves
  4. The proposal design of the working group or project team can consider designing bounty to add bounty tasks

Voting Mechanisms


One of the biggest obstacles to decentralized governance is that not enough people are involved.

When few people are involved, the project becomes less decentralized, which raises several interrelated issues. Less participation.

  • Allowing adversaries to execute governance attacks more cheaply.
  • raises regulatory and legal issues related to securities law
  • Erodes the democratic legitimacy of the organization, which can make it more difficult to recruit contributors, attract users, or achieve basic goals.

In the last season, our voting adoption threshold, based on the discussions of the first governance group, was set at

  • Voting period: 3~7 Days
  • Voting threshold:>50%
  • Voting Quorum: Around 70% of SBT holders

We found several major problems in the implementation of this mechanism

  1. Buidler was not motivated to vote, and each vote required a lot of human effort for notification, creating ‘rush’ behavior
  2. the threshold required for voting was too high, as the insufficient turnout of proposals led to some items not being passed in time, creating a governance burden
  3. Governance behavior is not rewarded as it should be

Directions for improvement

  1. design the governance cycle to foster buidler fixed voting awareness (Done)
  2. lower the voting rate threshold and increase the weight of negative votes to avoid clique behavior (Done)
  3. design governance matching reward system (In process)

Issues that still need to be addressed

Governance Matching Incentive System

  1. Buidler fixed pay system

Fixed LXP per month per buidler, deducted for non-participation in governance and community activities

  1. governance includes not only voting, the study of governance mechanisms also includes contributing to governance, the design of this aspect (eg: governance bounty tasks)


Paying People to Participate in Governance

Proposal Guidance and Research

Available guidance documents.

About Proposal treasury expenditures and revenue distribution

Issues identified in the proposal guidance in the last governance quarter

  1. salary distribution, how much each person shares
  2. revenue allocation, many proposals do not generate revenue, or some projects generate revenue from 5% of the total project share, the allocation of this
  3. the composition of staff, in the course of the project or working group, there are often additions and deletions of staff

Improvement directions

  1. categorize proposals: governance proposals (non-revenue generating), project proposals, collaboration and incubation proposals
  2. output a better proposal specification document

Research Solution

  1. Conduct a general study of each DAO and produce a study report