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  1. Deep Dive

Perped DAO

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Last updated 2 years ago

The Perped protocol will be governed by a Decentralized Autonomous Organization (DAO). The DAO will be a set of on-chain smart contracts which, through the process of Perped ($PRPD) token-based voting, decide the parameters that underpin the protocol.

The Perped project will have an open, decentralized and direct governance model. Token holders of Perped will be eligible to stake their tokens in the DAO, which will grant them direct voting rights in the DAO. As a result, they can participate directly in the project's governance.

To incentivise governance, stakers will receivetoken rewards from a portion of the fixed token supply, labeled ‘Platform and Staking Rewards’, and real yield in the form of protocol revenue as described in the ‘Tokenomics’ section. The former will be a limited token distribution in the same vein as that of Synthetix, with the token rewards reducing over a fixed period of time. The latter is expected to increase over time as protocol usage increases, as volume and subsequently fees are expected to increase proportionally.

The DAO will vote on parameters such as:

  • Percentage of fee taken on open/close trade transactions

  • Percentage split of overall fees (including OEV-generated revenue) between Liquidity Providers, Protocol Owned Liquidity, and team-owned multisigs

  • On-chain addresses to which the revenue from the above is directed

  • Governance voting parameters such as quorum, passing threshold, maximum voting period

It will also vote on operational functions such as withdrawal of tokens from the Perped Primary ($PRPD) and Secondary (stablecoin/ETH) treasuries, for individuals/teams which request for grants in order to help build out additional functionalities of the protocol.