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Governance

The SSV Network DAO decentralizes ownership and governance of the protocol and treasury. Anyone who holds the native SSV token can participate in votes, proposals, and other DAO decisions.

The SSV Network DAO exercises its mandate through two main mechanisms. The first is execution of governance functions controlled by the governance multisig. The second is execution of Snapshot proposals passed by token holders. Execution is carried out by appointed contributors and working groups within the DAO.

Governance Responsibilities​

  • Treasury - Network fees fund the DAO treasury and support the SSV protocol and ecosystem. This can include grants for protocol development and network growth, community programs, treasury diversification, and strategic initiatives.
  • Voting - Major governance decisions are voted on by the DAO. This includes; formation of working groups, DAO contributors, and others. Anyone holding SSV tokens can vote and actively participate in the protocol's governance.
  • Grants - The DAO has a grant program to support ecosystem growth and development. It helps teams building decentralized staking applications, developer tools, and related resources. The process is overseen by the Grants Committee.

Governance Controlled Parameters​

  • Network fees - To use SSV Network, stakers must pay a network fee. This fixed cost is determined by the DAO. Network fees flow directly into the DAO treasury and can be used to fund ecosystem development and activities that have passed the DAO voting process. Fee decisions should balance treasury needs with protocol competitiveness.
  • Operator fees - These fees are set and controlled by the operators themselves, not by the DAO governance. The smart contract does however include guardrails that limit the amount by which operators can increase their fees in each fee change cycle as well as the cycle duration (read more on Operator fee change guidelines). These parameters are essential to ensure the stability of the network and to protect stakers against sudden operator price hikes. On the other hand, if the rate of fee change was too low or the fee change was too long, it could cause the system to be too rigid and not adaptable to the changing market conditions. Setting these parameters must be done judiciously to match the current market conditions.
  • Liquidation parameters - DAO governance sets the parameters used to determine when a cluster is at risk of liquidation. These parameters help protect the network from insolvency (read more in Liquidations).

Governance Functions​

Here you can find the functions controlled by DAO Governance. By voting on these parameters, governance can control network fees and set the conditions for operators to update their fees.

Governance process​

The best resource to learn more about the inner workings of the SSV DAO is the Network Hub Notion page. There you can learn how to get involved in the SSV Grants Program, Ambassador Program, DAO working groups, and more. To view or submit proposals about what the DAO should fund or focus on, visit the SSV forum.

  • Voting - All voting takes place on ssv.network snapshot. The voting period is usually 7 days, and prior to any vote, there is a forum post with the proposal and a discussion.
  • DAO Working Groups - Working groups are dedicated teams made up of network contributors. They have defined goals, responsibilities, and a mandate from the DAO to act autonomously. Each working group focuses on a different area of SSV Network growth. You can see all working groups and their responsibilities on the DAO Working Group Notion page.

How to Become a part of the DAO​

There are multiple ways to get involved. A good starting point is to join the Discord and participate in the forum. Developers can review the GitHub repositories and work on open issues. If you want to contribute in a larger capacity, Discord is the best place to start the conversation.

We look forward to hearing from you and expanding the DAO.