Governance Process Phase 1: Submitting a QWIP Idea After a QWIP Idea is submitted, Phase 1 defines how it transforms into a Formal QWIP for consideration by the QWAN DAO. This includes a level of community support, incorporating relevant feedback, and putting together the formal proposal that moves onto the next phase in the governance process. • A QWIP Idea must be submitted as a topic. • The topic is reviewed by a Foundation administration team to ensure the proposal is relevant and meaningful to the QWAN ecosystem and its development, and otherwise meets community guidelines. • Tokenholders engage with the topic and the author(s) to informally gather feedback and initial support. • The QWIP remains in Phase 1 for community discussion until all of the following are met: • Minimum Time Period: A minimum time period of seven (7) days is set to allow for sufficient time for community discussion. An author cannot request to continue forward in the process until the minimum time period is met. The Special Council shall have the right to expedite the timing of the QWIP process at its discretion. • Explicit Request: The QWIP Idea shall remain in community discussion until the author believes they have received sufficient feedback from the community and explicitly requests to move to Phase 2. An author cannot request to continue forward until the Minimum Time Period has been met. • Formal QWIP Template: While the initial idea or topic may be submitted as a vague or ill-defined idea, it must follow a specific template and provide sufficient information to the community prior to moving forward. This formal template includes but is not limited to: • Summary: A summary of the proposal. • Background: Provide background information, if any, for the proposal. • Objective: Explain the goal of the proposal. Clearly state how and why the proposal will benefit or foster the interests or goals of the QWAN DAO. • Team: Identify the team or persons that will execute or implement the specifications of the proposal.A QWIP Idea must be submitted as a topic. • Specification: Explain in detail the project, development, expected/proposed timelines, use case, feature, or change that is being proposed, and other information relevant to the proposed idea. • Implementation Plan: Clear step-by-step process on how the proposal will be executed or implemented and what resources, support, or contributions, if any, are being requested from the community and/or the QWAN Foundation. • Costs: Define the budget or costs for the proposal. • Once all the criteria listed above are met, the QWIP Idea moves to the next phase in the governance process.
Phase 2: Review and Analysis of Formal QWIP Once a proposal has passed Phase 1, it moves to Phase 2 for review and analysis. This includes critical considerations involving understanding the purpose of the proposal, how it benefits the QWAN DAO, and fulfilling any specific requests from the QWAN Foundation, Administration Team, or Special Council, if any. • In this Phase, all QWIPs will be assigned a unique identification number which will be used throughout all stages of the proposal lifecycle. The Foundation administration team will update the title of the topic. • The Foundation administration team will review the Formal QWIP submitted by the author(s). Further questions may be asked if certain areas of the Formal QWIP are unclear. • A risk-based approach is applied for the analysis. • Author(s): Online presence, information, and any other relevant publicly available information about the author(s) is reviewed. • Request: The request from the QWAN Foundation is clearly stated and unambiguous so that it can be fulfilled if the Formal QWIP is accepted. • Operations & Risks: Identify the operational requirements and risks to the QWAN ecosystem. This includes but is not limited to: • Legal risk; • Jurisdiction risk; • Sanctions risk; • Market and economic risks; • Product & services risk; • Key person risk; • Regulatory risk; • Operational risk; • Brand & reputational risk; and • Protocol, technology, and network risk. • Once the Foundation administration team has reviewed the QWIP, has identified the operations and risks, and the support levels are met, the proposal and analysis is presented to the Special Council. • The Special Council may perform the following actions: • Ask additional questions to the author(s). Once these questions are answered, it is presented back to the Special Council for consideration. • Reject the Formal QWIP: The Formal QWIP may be rejected if the Special Council determines, in its reasonable discretion, that costs are not clear, there are material risks to or resulting from implementation, it may cause harm (including reputational harm) to the QWAN DAO, requires a commercially unreasonable amount of assets or resources, does not align with or foster the objectives, interests or mission of the QWAN DAO, unduly increases risks to the ecosystem or the DAO, as determined in the Special Council’s sole discretion, has the potential to violate any applicable laws or regulations, or other appropriate reason to reject. • Permit the Formal QWIP to proceed for official vote by the QWAN DAO. • Withdrawn Proposals: Formal QWIPs may be withdrawn and exit the governance process at this phase as follows: • Specifically requested by the author(s). • After a time period of no or incomplete response to questions proposed by the QWAN Foundation administration team or Special Council within 30 days.
phase 3: Voting Process Phase 3 outlines the voting parameters, mechanics, procedures, and criteria for a Formal QWIP to be considered officially accepted by the QWAN DAO. • If the Formal QWIP has been approved for a Tokenholder vote by the Special Council members, it is then posted for community voting. • Voting will occur at theqwan.eth (an Ethereum Name Service domain address) and initially utilize Snapshot which can be accessed through dTerminal. • Votes will be counted by the number of $QWAN tokens voted in favor of or against the Formal QWIP. • Voting options will be “For” and “Against”. • Voting by a minimum of 10,000,000 $QWAN tokens is required for a quorum in order to have a valid voting process. If less than 10,000,000 $QWAN tokens are voted, the Formal QWIP will be considered Rejected. • Any $QWAN Tokenholder can delegate their vote, provided that, in the absence of a QWIP approved at a later date, the Special Council may establish guidelines for token voting delegation. • The Foundation administration team can create the vote up to 48 hours prior to when voting is opened. • The voting period shall last for 6 days. • A Live QWIP becomes an Accepted QWIP if there are a majority of “For” votes and quorum achieved. A Live QWIP becomes a Rejected QWIP if there is not a majority of “For” votes. A tie means the Live QWIP becomes a Rejected QWIP. Conflicts One or more QWIPs may be in direct conflict with one another. Once a Formal QWIP is approved for an official vote by the Special Council, any QWIPs or Formal QWIPs that are in direct conflict with such Formal QWIP (as may be reasonably determined by the Special Council) shall be put on pause until the vote has taken place. If the Live QWIP becomes an Accepted QWIP, the QWIPs and Formal QWIPs in progress are considered null and void. If the Live QWIP becomes a Rejected QWIP, the QWIPs and Formal QWIPs in progress are unpaused and continue through the governance process. An Accepted QWIP shall be given a period of four (4) months after implementation before a QWIP that is in direct conflict can be submitted into the governance process. This provides time for the Accepted QWIP to develop and minimizes the duplication of QWAN ecosystem assets and resources.