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VSC-99: DAO Program

Coming Soon

VSC-99 is currently in development and scheduled for the beta testnet period. The design is finalized but the implementation has not yet shipped. This page describes the planned feature set.

VSC-99 defines a protocol-native DAO program for token-weighted community governance on Vexidus. Unlike smart-contract DAOs on EVM chains, VSC-99 DAOs are built into the state machine -- creators configure parameters and deploy with a single operation. No Solidity. No audits. No bytecode.

Relationship to VSC-88

VSC-88  (disc 60-67)  -- Protocol governance + multi-sig (validator stake-weighted)  [LIVE]
| shares voting engine
VSC-99 (disc 68-74) -- DAO program (token balance-weighted, user-created) [COMING SOON]
| reads balances from
VSC-7 (disc 1-4) -- Fungible token standard (voting token) [LIVE]

VSC-88 is for protocol-level decisions made by validators. VSC-99 is for community-level decisions made by token holders. VSC-99 reuses the same voting engine (proposal lifecycle, quorum math, double-vote prevention) but with token-weighted voting instead of stake-weighted.

Key Features

One-Operation DAO Creation

A DAO is created with a single CreateDAO operation. The creator defines all governance rules upfront:

  • Which VSC-7 token determines voting power
  • Minimum token balance to propose / vote
  • Voting period, quorum percentage, approval threshold
  • Optional execution delay (timelock)
  • Treasury address and per-proposal spending cap
  • Allowed proposal types

Token-Weighted Voting

Voting power = governance token balance. If you hold 1% of the token supply, your vote carries 1% weight.

Snapshot modes:

  • At Proposal Creation (recommended) -- Voting power locked at the block the proposal was created. Prevents vote-buying (buy tokens, vote, sell).
  • At Vote Time -- Simpler but potentially gameable via flash loans or short-term accumulation.

Proposal Types

TypeDescriptionEffect
Treasury SpendTransfer tokens from DAO treasuryAuto-executed on approval
Text ProposalCommunity signal voteNo on-chain state change
Config ChangeModify DAO parameters (quorum, voting period, etc.)DAO config updated
Council ActionCouncil-specific operationsVeto, fast-track, member changes

Elder Council (Optional)

DAOs can optionally configure an elder council -- a small group (up to 11 members) with special powers:

PowerDescription
VetoKill any active proposal
Fast-TrackSkip voting period, approve immediately
Propose-OnlyRestrict proposal creation to council members
Member ManagementAdd/remove council members (requires M-of-N council approval)

The council is optional and fully configurable. A DAO can launch with no council (pure token democracy), a council with limited powers (veto only), or a council with broad authority.


Planned Operations

OperationDiscDescription
CreateDAO68Deploy a new DAO with full configuration
DAOPropose69Submit a DAO proposal
DAOVote70Vote on a DAO proposal (token-weighted)
DAOExecute71Execute an approved proposal after timelock
DAOCancel72Cancel a proposal (proposer or council veto)
DAOUpdateConfig73Update DAO config (internal, via approved ConfigChange)
DAOCouncilAction74Council veto, fast-track, or member changes

Planned RPC Methods

MethodTypeDescription
vex_createDAOWriteDeploy a new DAO
vex_daoProposeWriteSubmit a DAO proposal
vex_daoVoteWriteVote on a proposal
vex_daoExecuteWriteExecute an approved proposal
vex_daoCancelWriteCancel a proposal
vex_daoCouncilActionWriteCouncil veto/fast-track/member changes
vex_getDAOReadGet DAO config by address
vex_listDAOsReadList all DAOs (filter by token)
vex_getDAOProposalReadGet proposal details
vex_listDAOProposalsReadList proposals for a DAO
vex_getDAOVotingPowerReadGet voting power for a user at a height

Planned CLI Commands

# Create a DAO
vexidus dao create \
--name "MyProject DAO" \
--token <governance_token_mint> \
--min-propose 1000 \
--min-vote 1 \
--quorum 10 \
--threshold 51 \
--voting-period 7200

# Submit a treasury spend proposal
vexidus dao propose \
--dao <dao_address> \
--type treasury-spend \
--title "Fund marketing campaign" \
--description "Allocate 10,000 tokens for Q2 marketing" \
--recipient <address> \
--amount 10000000000000

# Vote
vexidus dao vote --dao <dao_address> --id 1 --approve

# Execute
vexidus dao execute --dao <dao_address> --id 1

# View
vexidus dao show --dao <dao_address>
vexidus dao proposals --dao <dao_address>

Proposal Lifecycle

Created (Voting)
|
+-- Token holders vote (balance-weighted)
| |
| +-- Quorum met + threshold reached --> Approved
| | |
| | +-- Execution delay passes
| | | |
| | | +-- DAOExecute called --> Executed
| | |
| | +-- (waiting for timelock)
| |
| +-- Quorum met + below threshold --> Rejected
|
+-- Voting period expires without quorum --> Expired
|
+-- Proposer cancels --> Cancelled
|
+-- Council veto --> Vetoed (if council enabled)
|
+-- Council fast-track --> Approved immediately

Security Design

ConcernProtection
Vote buyingSnapshot at proposal creation block -- buying tokens after doesn't help
Flash loan attacksSame-block manipulation impossible with creation-time snapshot
Council abuseAll council actions logged on-chain, visible to community
Treasury drainPer-proposal spending cap + execution delay for community reaction time
DAO takeoverConfig changes go through full voting process
Inactive DAOsArchival mechanism for DAOs with zero activity

Competitive Advantage

FeatureEthereum DAOsSolana DAOsVexidus VSC-99
Deployment cost$50 -- 500 (gas)$2 -- 5~$0.0002
Audit neededYes (contract bugs)YesNo (protocol-enforced)
Elder councilCustom contractSPL GovernanceBuilt-in, configurable
Voting snapshotsOff-chain (Snapshot.org)On-chainOn-chain, protocol-native
Cost per vote$5 -- 50$0.01 -- 0.05~$0.0002
DAO creation UXComplex (deploy + verify)Moderate (SPL CLI)One CLI command or web form

Timeline

  1. VSC-88 (disc 60-67) -- Protocol governance + multi-sig -- Live
  2. VSC-99 (disc 68-74) -- DAO program -- Beta P1 (after genesis restart)
  3. VexForge DAO UI -- Web-based DAO creation wizard and voting interface -- Beta P2
  4. VSC-VEST integration -- Vested tokens can optionally count toward DAO voting power -- Post-beta

Stay Updated

Follow the Vexidus testnet for updates on VSC-99 availability. The implementation builds on the same voting engine already proven by VSC-88 protocol governance.