InsurAce.io will adopt the DAO governance mechanism commonly deployed in DeFi projects nowadays, with INSUR as the governance token for voting and incentive purposes. The principles for InsurAce.io governance are:
Security of the capital that members deposit is at the highest priority. The community shall decide use, movement, investment, and/or any other fundamental change to member capital;
The day-to-day operations of the InsurAce.io platform will continue to function without community involvement;
Encourage maximum community participation in vital area changes such as business design, product listing/delisting, feature addition/removal, technology evolution, version releases, etc.
In the event when community governance fails, there should be contingency procedures in place as the fallback plan to form a complete waterfall.
The governance framework will comprise two approaches:
Community Voting. When there are any new proposals, the community can vote for or against the proposals until consensus is reached.
Advisory Board consists of InsurAce.io employees as well as 3rd-party independent advisors with technical, insurance, compliance, and/or other required expertise. They work as the oversight committee to set specific rules, review the community proposal, and execute contingency plans when the community voting mechanism fails.
The fundamental voting mechanism is that the INSUR token shares stand for the voting rights with a cap per member set to avoid the concentration risk. The voting outcome will be based on the quorum, majority, voting right weights, etc. The general process for community proposal handling are:
Proposal Raise: participants of InsurAce.io to raise the proposal.
Advisory Board Preview: the Advisory Board to review the proposal first with their expertise, provide their comments as a reference for the community, set the proposal's incentives, define the default outcome should voting fails, etc.
Member Vote: members vote for or against the proposal in which INSUR token lock-up might be needed and conclude with a definite outcome.
Execution: InsurAce.io project team and community contributors work together to implement the proposals and disclose them with transparency accordingly.
We hope to build InsurAce.io as a secure and fair platform, by the community, of the community, and for the community.