My Virium

Snapshot Terms

Virium DAOs Snapshot space is here: https://snapshot.org/#/virium-dao.eth/about

VDAO and many other Decentralized Autonomous Organizations (DAOs) utilize the Snapshot service to facilitate decentralized decision-making. Here’s how it works:

What is a DAO?

  • Definition: A DAO is an organization represented by rules encoded as a computer program that is transparent, controlled by organization members, and not influenced by a central government.
  • Operation: DAOs operate on blockchain technology, ensuring transparency and security.

What is Snapshot?

  • Purpose: Snapshot is a service for off-chain voting to make decisions in a decentralized manner.
  • Features: It offers a gasless, secure, and scalable voting mechanism for DAOs.

Integration of DAOs with Snapshot

Proposal Creation:

  • Any member of the DAO with minimum number of VDAO tokens (currently 1000 VDAO) can create a proposal. This includes decisions on governance, resource allocation, policy changes, etc.
  • Proposals are typically detailed, outlining the decision points and potential outcomes.

Voting Tokens:

  • DAO members usually have tokens representing their voting power. These tokens are often the DAO’s native cryptocurrency. For Virium, that token is VDAO token on Ethereum Mainnet or Polygon.
  • The more tokens a member has, the more voting power they wield.

Snapshot Voting Process:

  • When a proposal is up for voting, members sign a message with their vote, which is linked to their token holdings.
  • These votes are then ‘snapshot’ at a specific block height on the blockchain, capturing the state of voters’ holdings at that moment.
  • This process ensures that voting power is calculated fairly and transparently, based on token ownership at the time of the snapshot.

Off-Chain Execution:

  • Importantly, Snapshot votes are off-chain. This means they don’t require transaction fees (gas) and don’t directly interact with the blockchain for voting.
  • However, the results are usually respected and enacted on-chain by the DAO.

Decentralization and Security:

  • Snapshot enhances decentralization by allowing a broad base of token holders to participate in governance without incurring transaction fees.
  • The use of digital signatures and blockchain technology ensures the integrity and authenticity of votes.

Implementation of Decisions:

  • Once voting ends, the decision with the majority support is typically implemented by the DAO.
  • This process may involve on-chain actions like smart contract updates, treasury management, etc.

Advantages

  • Cost-Effective: Reduces the cost of participation as it doesn’t require gas fees.
  • Broad Participation: Facilitates wider community involvement in decision-making.
  • Transparency and Security: Ensures a transparent and tamper-proof voting mechanism.

Conclusion

A service like Snapshot is pivotal in empowering DAOs with a decentralized, secure, and inclusive platform for decision-making, embodying the principles of blockchain technology and decentralized governance.

VDAO follows best practices of DAOs as feasible.