The Boardroom is a type of decentralized governance built using an array of established DAO tools and protocols. It allows community members to make crucial decisions and submit proposals to change certain aspects of the Nuon protocol’s functionality:
- types of whitelisted assets
- the general direction of the Nuon protocol
- distribution of a percentage of Treasury funds
- growth of the ecosystem via hackathons and grants
Other functions essential to the functionality of Nuon Protocol are built in, autonomous and/or governed by free market forces. However, there are certain features that can't be open to community governance, to keep the protocol safe — these features include:
- Collateral Hub smart contracts
- Nuon and nuMINT supply and market cap
- the inflation adjustment parameters
- collateralization ratios and fees
Some protocol features such as collateral ratio and fees are adjustable by the protocol's admins, who have first-hand experience and understanding of the system's design and testing results. Other features cannot be changed except through a fork.
The Collateral Hub smart contracts are autonomous and vetted by external auditors to ensure that access or redistribution of depositors’ assets are safe.
nuMINT has a dual purpose: it is a governance token that plays a crucial role in establishing the future direction of the Nuon Protocol as well as a fee accumulation token for its holders.
Token holders prove their voting eligibility by temporarily locking nuMINT tokens to the Boardroom for a selected period, which comes with an array of incentives:
- Voting power
- A portion of the platform fees (TBD)
- Providing liquidity to Nuon-nuMINT liquidity pools for a portion of rewards
- Airdrops from projects sponsored by the community via Treasury grants
nuMINT is locked in the Boardroom for 6 epochs, with each epoch equalling 6 hours. Stablecoin rewards can be claimed for each 3 epochs that pass while the nuMINT is locked up. Any actions taken in the boardroom will reset both the lockup timer to another 6 epochs, and the reward claiming timer to 3 epochs. Withdrawing nuMINT from the Boardroom also claims the stablecoin rewards.
To vote, users must stake their nuMINT tokens in the Boardroom portal of the web3 application.
1 token = 1 vote
To make a proposal or cast a vote, users need to temporarily lock their nuMINT for the duration of the discussion and the vote. It could prevent them from benefiting from other staking opportunities. To make voting worthwhile, users who lock their nuMINT in a Boardroom protocol receive a portion of rewards from the protocol fees.
Nuon smart contracts autonomously maintain the security and stability of the system. The community is able to decide on the general direction of the platform. To increase the governance participation, incentives have been added:
- An easy, user-friendly voting protocol with educational tutorials.
- A portion of the protocol fees for users willing to vote or participate in proposal discussions.
The reason users are required to stake nuMINT to vote and participate in governance is to maintain healthy entry barriers and prevent trolling and unreasonable proposals.
Once the Boardroom Treasury passes a required minimum (TBD), the community can offer grants to community projects to grow and promote the ecosystem. Grants can also be offered in nuMINT tokens from the ecosystem or development pool.
Anyone can submit new project proposals to the Boardroom, provided they have nuMINT staked in the Boardroom. nuMINT token holders then vote to distribute grants to build new protocols, tools, and features on the platform.
Relevant projects are also allowed to 'lobby' community members, promising potential rewards after their successful launch. If successful, the winning projects can airdrop complimentary rewards to all the governance token holders through a Boardroom structure.