Understanding Governance

The Pawnfi community governs itself via the Pawnfi DAO, the decentralized governance framework that supports the growth and expansion of Pawnfi Protocol. With the collaboration between Pawnfi core team and Pawnfi community, it ensures the protocol can rapidly adjust to changing market conditions, as well as upgrade core parts of the protocol as time goes on.
This governance guide is an overview of the governance structure and process. It’s a living document that will evolve and improve with the DAO community’s input.
Governance Workflow

Governance Power

PAWN token holders receive governance powers (Voting Power) by placing their PAWN in Pawnfi SAFE.

Governance Channel

Governance Forum is where debate starts. Any one can initiate a discussion under corresponding category.
Snapshot is used for voting. Specific topics that core team believes worthy of formal discussion will be finalized as PIPs and become available for voting on Snapshot. It is required to have Voting Power to participate voting on Snapshot.

Discussion Categories

More details will be provided in governance forum. But in short, you can discuss anything with the community.
  • Governance: Discussion around the Governance process, topic categories, standards and expectations, including the use of community forum.
  • Assets & Markets: Discussion around assets & markets for Pawnfi Protocol.
  • Risk: Discussion around the risk related to the protocol, underlying assets or the appropriate sub-categories.
  • Protocol Development: Discussion around the future development, upgrades, and enhancements on Pawnfi Protocol.
  • On The Fly: Discussion around the topics that does not fit in an existing category.
  • Help & Resources: Topics to help our DAO families to stay answered, informed and connected.
Anyone can initiate discussion on a particular concern or suggestion in the community, and participate in other topics in the meantime.

PIP Voting

Pawnfi DAO’s consensus mechanism aims to make voting fair, transparent, and low-cost, so that PAWN token holders with Voting Power can participate in the decision-making of the DAO.

Voting Process

  1. 1.
    Moderators post PIPs to Snapshot after receiving consensus from the community. New PIPs will always be the critical ones that Pawnfi core team believe worth the most formal discussion amongst DAO family.
  2. 2.
    DAO members will need to vote on Snapshot with their Voting Power. One voting power is equal to one vote. The voting options for a Live PIP are “PASS” and “BLOCK.” Voting “PASS” means the voter is in favor of implementing the PIP exactly as-is. Voting “BLOCK” means the vote is against implementing the AIP exactly as-is — you may vote “BLOCK” to encourage redesign of the PIP.
  3. 3.
    The voting for each proposal will be open for voting for six days.
  4. 4.
    Proposals that pass the voting threshold and receive a majority “PASS” vote are moved into implementation. Proposals that are blocked will have the chance to be resubmitted if the community believes it worth another round of voting/ formal debate. If by the Vote Close Time the Live PIP has not gotten any votes or is tied, it will be rolled back for community discussion and be reposted to PIP voting later.