Governance Basics

The Aegis DAO is governed by a decentralized protocol that empowers $AEG token holders to propose, discuss, and vote on various actions that shape the future of the Aegis ecosystem. These actions may include updates to governance, adjustments to key products like YUSD, or decisions related to the allocation of funds from the Aegis DAO treasury. The voting process ensures that the Aegis community has a direct influence on the platform’s direction.

The global community of $AEG token holders collectively governs the Aegis ecosystem, including the strategic direction of YUSD and other DeFi products, the treasury, and risk management initiatives.

Types of Votes in Aegis DAO

1. Preliminary Check:

   • Similar to a "Temperature Check", this is a preliminary step where the community’s interest in a proposal is gauged. It serves to identify whether a proposal should progress to a formal vote. This stage is conducted off-chain via a decentralized platform and is open to $AEG token holders with a minimum threshold of tokens to participate.

   • Token holders will use their $AEG tokens to indicate their interest or opposition to a new proposal, ensuring that only ideas with significant community support advance.

2. On-Chain Governance Vote:

   • Proposals that pass the preliminary check move on to an on-chain vote. This stage is where formal decisions are made, and voting occurs directly on the blockchain using $AEG tokens.

   • On-chain proposals require a higher threshold of voting power to initiate, ensuring that only well-backed proposals reach this stage. A defined percentage of votable tokens must participate for a decision to be valid, with separate requirements for standard and more critical governance proposals.

   • For a proposal to pass:

     • Standard proposals require votes from at least 3% of votable tokens.

     • Critical and technical proposals that involve significant changes to governance require votes from at least 5% of votable tokens.

     • For approval, more than 50% of the voting tokens that participated must vote in favor of the proposal.

Token-Weighted and Delegated Voting

Voting power in Aegis DAO is determined by the amount of $AEG tokens held by a voter. Larger token holders wield more influence, but the system is designed to give every holder a voice.

• Delegation: Token holders who may not be able to engage actively in every vote can delegate their voting power to a Delegate—a trusted community member or entity that votes on their behalf. This ensures broader participation in governance decisions, even from token holders who are less involved day-to-day.

Values-Based Voting

Aegis DAO operates on a clear set of guiding principles designed to ensure that the ecosystem remains decentralized, secure, and aligned with the community’s long-term vision. These values include:

• Decentralization: Ensuring that decision-making power is distributed across the community and not concentrated in a few hands.

• Transparency and Security: All governance decisions, particularly around YUSD, are conducted transparently, with security at the forefront.

• Sustainability and Growth: Decisions are made with the goal of long-term sustainability, ensuring that the platform can grow while maintaining its core principles.

When voting on proposals, $AEG token holders are encouraged to consider how each proposal aligns with these values and whether it benefits the ecosystem as a whole.