Token-based strategy

The Token Holders Strategy takes a different approach to voting within a DAO. This strategy uses a token-based system, where each PSP22 token held by a wallet represents a certain amount of voting power. Here's a closer look at this strategy:

• Token-Based Voting Power: In the Token Holders Strategy, the number of tokens held by a wallet determines its voting power. If one PSP22 token equals one vote, a wallet holding 100 PSP22 tokens wields voting power equivalent to 100.

• Ownership-Based Incentives: This strategy ties voting power to the ownership of the underlying asset (PSP22 tokens). It incentivizes token holders to act in the best interest of the organization, as their influence in the DAO is directly proportional to their token holdings.

• Customization: PSP22 tokens can be customized to represent ownership or voting rights in the DAO. This flexibility allows for creative use of tokens and innovative governance structures.

Available Voting Strategies

Basic Voting or Referendum

Similar to the wallet-based strategy, participants can vote "YES," "NO," or "ABSTAIN" on a proposal. However, in this strategy, voting power is determined by the number of PSP22 tokens held by each participant.

Weighted Voting

In the Weighted Voting strategy, participants can vote on multiple answers, and the voting power can be split between available options. This approach allows for more nuanced decision-making, where some participants may have more influence on certain aspects of a proposal while others have greater influence on different aspects.

How it works

Creating a proposal, voting and delegating voting power may require locking governance tokens in the DAO Governor contract for some period of time. The locking period depends on the type of action (creating proposal, voting or delegating). The locked tokens can be withdrawn when the locking period ends and/or used to perform another action.

Creating a proposal

Some DAO may require depositing governance tokens to create a proposal. The amount depends on the “proposal threshold” parameter $PT$ and the $total supply$ of the governance token. The proposal deposit amount is equal $PT \times total supply$. The tokens are locked until the end of the voting period of the created proposal and cannot be used to vote on the created proposal.

Voting

When voting, you can specify the token amount you wish to use in voting. The tokens are locked under individual proposals. The locked tokens cannot be used to vote on the same proposal again, however, they can be used to perform other actions e.g. to vote on different proposals.

Delegation

You can specify the amount of token you wish to delegate to another account (the delegate). The delegate account can use the delegated tokens to vote and create proposals. When you wish to withdraw a delegation, the delegate won’t be able to use the delegated tokens. The tokens will remain locked in your deposit under the proposals on which the delegate voted - you can withdraw the tokens when the proposals end.