The Governance Process

Proposals follow a structured, on-chain workflow to ensure transparency and efficiency.

Proposal Submission

Any $DGAI holder can submit a proposal, provided they:

• Deposit a 5,000 $DGAI "bond" (refunded if the proposal reaches quorum; forfeited otherwise to prevent spam).
• Include technical specifications, cost-benefit analysis, and implementation timelines.

Proposals are hosted on-chain and mirrored to DStorage for public review.

Discussion Period (7 Days)

• The community debates the proposal via official channels (Telegram, forum), with node operators and developers providing technical feedback.
• The proposer may revise the proposal based on feedback, with changes logged on-chain.

Voting Period (7 Days)

• Eligible voters (staked $DGAI holders) cast votes: For, Against, or Abstain.
• Quorum Requirement: At least 30% of staked $DGAI must participate for the vote to be valid
• Passing Threshold: Proposals require ≥51% "For" votes to be approved.

Execution

• Approved Proposals: Automatically implemented via smart contract upgrades(for on-chain parameters) or network-wide node updates (for protocol changes). Adaptor Nodes enforce compliance, penalizing non-upgraded nodes.
• Rejected Proposals: The 5,000 $DGAI bond is transferred to the Treasury to fund ecosystem growth.

Why Decentralized Governance Matters

• Alignment with Community Needs: Decisions are made by those using and operating the network, not centralized teams.
• Adaptability: The network can evolve quickly to adopt new technologies (e.g., integrating a breakthrough LLM) or address challenges (e.g., adjusting fees during high demand).
• Trustless: On-chain voting eliminates reliance on intermediaries, ensuring outcomes are enforced by code, not human discretion.

By empowering $DGAI holders to govern key decisions, DGrid.AI ensures the network remains community-driven, innovative, and aligned with its core mission: making AI a decentralized utility for Web3.