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description: To be instated 12 months post TGE
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# DAO Governance

This document outlines the planned governance and proposal process for The XR Foundation DAO ("XR DAO"). It details the governance roles of $XR token holders, known as community members, and describes the proposal process from submission to voting. The governance structure is designed to evolve, offering flexibility through this document's own evolution.

### **Background**

The XR DAO is designed to demonstrate the value of democratising the gaming industry, enabling players and creators to actively participate in the value chain. The XR DAO supports the development, funding, and distribution of games and blockchain technologies on XR One to lower entry barriers for game developers and broadens the gaming market, allowing for more innovative and web3-based interactive experiences. Further, the XR DAO will work to grow the Play2Impact treasury and allocate its resources to meet the objectives of the community.

### **Objective**

The objective of this document is to establish a comprehensive governance and proposal process for the community. This includes detailing how tokenholders can submit proposals, the criteria for a formal proposal, review processes, and community voting procedures. Additionally, it will set up The XR Foundation structure to oversee the XR Ecosystem, including a Council to manage and support the Foundation and the proposal process.

### **Definitions**

* **XR Improvement Proposal (XIP):** An initial idea or proposal for new projects, features, or changes within the XR Ecosystem.
* **Formal XIP:** A fully detailed proposal submitted according to the provided template.
* **XIP Template:** The required information format for a Formal XIP.
* **Live XIP:** A Formal XIP that has been put to a community vote.
* **Accepted XIP:** A Live XIP approved by a majority of "For" votes.
* **Rejected XIP:** A Live XIP that fails to achieve majority "For" votes or does not meet minimum voting thresholds.

### **Internal Structure**

* **Tokenholders:** Engage in governance by submitting XIPs, discussing proposals, and voting.
* **XR Council:** Composed of members appointed to oversee, manage, and support the XR Foundation and XR DAO.
* **Subcommittees:** Advisory groups from various industry sectors that support the Foundation's growth and integrity.

### **Participation Requirements**

* Only $XR token holders who have contributed to XR One can participate in the DAO processes,  requiring at least 1 $XR token to submit proposals or vote.

### **Proposal and Voting Process**

1. **Submission:** Proposals are submitted as topics on the designated discussion platform.
2. **Community Engagement:** Proposals undergo community discussion and feedback.
3. **Review and Formalisation:** The administration team reviews proposals for relevance and completeness.
4. **Voting:** Completed proposals are voted on using a designated voting platform.

### **The Council and Subcommittee Roles**

* **The Council:** Provides strategic oversight and makes critical decisions regarding the Foundation's direction and management.
* **Subcommittees:** Focus on specific areas like Grants, Game Development, Esports, and Web3 Infrastructure to advise and support the XR Foundation.

### Voting Parameters <a href="#voting-parameters" id="voting-parameters"></a>

The initial voting parameters for token-holders is as follows, which may be subject to further changes:

Voting Period: 3 days (Length of the period during which people can cast “Yes” or “No” votes)

Delay Period: 2 days. The delay period takes place after the voting period has ended and before the proposal is executed. During the Delay Period, token holders can only vote against open proposals. “Yes” votes cast during the Voting Period can be switched to “No” votes during this period. Upon completion of the Delay Period, if the number of “No” votes is greater than the number of “Yes” votes, the proposal will not pass.

Proposal Threshold: TBD

Voting Threshold: TBD

### Implementation Period <a href="#implementation-period" id="implementation-period"></a>

#### **On-Chain Actions**

For programmatic changes, token holders can execute approved proposals instantly following the completion of the Delay Period.

#### **Off-Chain Actions**

Due to the nature of off-chain actions, execution may not be immediate following the passing of a XIP. Certain off-chain actions may require Foundation Director approval, which may be vetoed in accordance with applicable law or for other reasons including inconsistencies with the Foundation’s purpose as set out in the Foundation's A\&R M\&A. If Foundation Directors exercise veto authority, disclosure and explanation for the veto shall be posted on the relevant XIP within two weeks of the proposal’s passing.

#### Voting Power <a href="#voting-power" id="voting-power"></a>

One (1) XR token equals one (1) vote over any proposals submitted to the DAO (the “Voting Power”). This will allow Tokenholders to participate in the governance process proportionally to their holdings. Subject to change.

The DAO, by Tokenholder Vote, may establish guidelines for evaluating and approving the inclusion of additional tokens in governance in the future.&#x20;

#### Amendments to Governance <a href="#amendments-to-governance" id="amendments-to-governance"></a>

The XIP procedures, Voting Parameters, Voting Power and all other governance mechanics can be amended or modified through XIP and a tokenholder vote. The above describes only the initial state of governance mechanics. The community is encouraged to decide the future state of governance, the DAO and the Jito Network. Amendments to the Foundation’s Bylaws can be made in accordance with the terms of the Bylaws and the Foundation Articles.
