Governance
The ssv.network DAO is the driving force behind decentralizing ownership and governance of the ssv.network protocol and treasury. The protocol’s native SSV token allows anyone that holds it to participate by using it for DAO votes, proposals, and other items that require a vote.
The ssv.network DAO exercises its mandate by two main mechanisms. The first is by executing governance functions controlled by the governance multi-sig. The second is by executing snapshot proposals passed by the token holders. Execution is accomplished by various appointees and working groups inside the DAO.
Governance Responsibilities
Treasury - Network fees fund the DAO treasury and are used to help support the SSV protocol and ecosystem. These include grants for protocol development and network growth, marketing & community incentivization, token swaps for treasury diversification, investments by strategic partners in exchange for SSV tokens, etc.
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 an extensive grant program to promote ecosystem growth and development. It is a community-led program to help support development teams building decentralized staking applications, developer tools and resources. The whole grant process is overseen and executed by the Grants committee.
Governance Controlled Parameters
Network fees - To use ssv.network, stakers are required to pay a network fee. The network fee is a fixed cost charged per validator, and it’s determined by the DAO. Network fees flow directly into the DAO treasury and can be used to fund further development of the SSV ecosystem and activities that have passed the DAO voting process. Decisions regarding new fee amounts need to be balanced; high enough to cover DAO expenses; but low enough for the SSV protocol to remain competitive.
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 minimum SSV balance required to cover fees for each validator. If the account balance goes below this liquidation threshold, it will be at risk of liquidation. This parameter is essential to ensure the health of the network, and protects it from becoming insolvent (read more on 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. Here you can learn how to get involved in the SSV Grants Program, Ambassador Program, DAO Working Groups, and more. To view or submit proposals regarding what the DAO should fund or focus on, check 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 the network’s contributors (Users, Ambassadors, etc..). They have a set of goals & responsibilities and a mandate given to them by the DAO to act autonomously and pursue them. Each working group is responsible for a different part of the ssv.network growth. You can see all the working groups along with their responsibilities on the DAO Working Group notion page.
How to Become a part of the DAO
There are multiple ways to get involved and start building. The best way is to get familiar with our discord and forum and start interacting with the community there. If you are a developer, you can check our GitHub, work on open issues and push some code! If you love the project and want to contribute in a larger capacity, discord would be the best way to reach out and make your case.
We are looking forward to hearing from you and expanding the DAO!\
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