Governance Phase 1

Key Design Choices

Component or Feature	Phase 1 Design
CVLDAO Treasury	XDAO
Governance	Gnosis Snapshot
Governance Token	CVL, GT XDAO
XDAO Owner	Multi-sig
Gnosis Snapshot Space Owner	Multi-sig

CVLDAO Treasury

CVLDAO uses a direct implementation of XDAO to store its treasury assets. XDAO is a widely used standard for enabling multi-sig control.

CVLDAO's main treasury contract is upgradable and can be found at the following Binance Smart Chain address: https://bscscan.com/address/0xad2af2df62d47b732cdf70c0bb9a3a8994541b84

Do not transfer assets into the CVLDAO Treasury unless you intend on making a donation. Transferring assets into the CVLDAO Treasury will not return any CVL tokens or any other tokens. Any assets transferred into the CVLDAO Treasury address cannot be recovered unless there is a DAO proposal and vote to do so.

We rely on XDAO extensive testing suite, bug bounty program, and security audits. For additional information regarding the contract, please look to the XDAO documentation.

Audits of all smart contracts were also carried out. Also, there is no updateable proxy in the system, and there is no way to change the state of current contracts.

Audit reports are available on GitHub:

• Pessimistic Audit;

• Hacken Audit.

Governance Module (Gnosis Snapshot)

Gnosis Snapshot is an off-chain vote aggregation platform. Snapshot supports off-chain governance for many industry leading blockchain and DeFi projects such as Balancer, Yearn Finance, SushiSwap, Uniswap, Bancor, The Graph, and Aave. We chose Snapshot as an off-chain vote aggregation platform to make governance simple and transparent for our users. It is a tried and true solution with a great user interface and user experience.

Snapshot-based governance, is commonly referred to as "soft" governance as the result of the vote is not automatically implemented -- it requires a development and operations team to perform subsequent actions, and implementation of changes via a multi-sig.

Our Snapshot Space: https://snapshot.org/#/cvldao.eth

Other Governance Discussions

In the community Discord and Forum, there will be a separate channel to discuss ideas around grants, token swaps, protocol roadmap, and governance.

Ideas that garner enough community support can be submitted for voting. A community member may draft a soft proposal for Snapshot that leads to an official community vote. Such proposals act as a “temperature test” or a poll, but do not guarantee implementation. The idea needs to be adopted by a development team, with finalized code audited and submitted, then deployed by the multi-sig administrators.

Multi-Sig Administrators

In Phase 1, CVLDAO treasury and Snapshot Space are administered by a multi-sig wallet.

We will look to community suggestions to distribute the signing keys more widely (for example 6 of 12 signers). Proposed changes to multi-sig signers or rules will be submitted via Snapshot proposal and voting process.

Proposal and Voting Parameters

Key Settings

Item	Phase 1 Parameter
Snapshot Strategy	1 CVL = 1 Vote Weight
Proposal Threshold	5,000,000 CVL
Vote Duration	Minimum 7 days
Vote Threshold	160,000,000 CVL (about 2.0% of token supply)

Note:

• The above settings are managed by the CVLDAO Snapshot Space administrators, who have been nominated DAO: 0xad2af2df62d47b732cdf70c0bb9a3a8994541b84

• In Phase 1 Snapshot, the above parameters are policies and not enforced by code. The CVLDAO affiliated R&D centers, and multi-sig administrators will not recognize any proposals that do not comply with the above settings.

• The above settings can be changed. We will discuss with the community on our forum, and submit a proposal vote prior to making any changes.

Definitions

Snapshot Strategy Defines the vote weight of each token. Our initial setting is 1 CVL = 1 vote weight, so each CVL has equal voting power. Future strategies may include: allocating vote weight to xCVL or CVL-BNB LP tokens to enable CVL holders who have staked, wrapped, or provided liquidity to retain voting power.

Proposal Threshold "Proposal Threshold" is typically defined as the number of votes required to create a proposal. In CVLDAO Snapshot Space this is done through a visual filter, to only display proposals from users who have at least the threshold number of CVL tokens delegated to their address.

Vote Duration The length of time between voting start and voting end.

Vote Threshold The minimum number vote weight (CVL tokens) required to vote on a proposal. If this minimum is not met, the vote is unsuccessful even if the majority of voters voted yes.