We’re excited to announce that shortly after the mainnet launch, we’ll also introduce a new chapter of inner protocol governance, Prom DAO, that will bring new ways for $PROM holders to contribute to the life of the network and benefit from it.
In a new role-based Prom DAO structure, $PROM holders would be able to directly support the further development of the product by delegating their tokens as voting power to other DAO members and get rewarded for their contributions.
If you have been a Prom community member for a significant amount of time, you may remember the first version of our DAO. It proved to be an efficient community-driven model for better and faster decision-making. The role of democratizing and enhancing the process further becomes pivotal for Prom to function in the best interest of community members.
Every Prom DAO contributor, from regular member to delegate or validator, benefits from supporting the network. DAO is highly important for the vitality of the whole Prom network. DAO Delegates & Validators are set to become an integral part of the Prom network, not only maintaining the product development but also sharing 32% of the network fees.
The Role of Prom DAO in The Ecosystem
You can view Prom DAO as a cloud entity with a prevalent mission to push the growth further. While traditional governance models keep the decision-making power in the hands of a small group of people, Web3 governance is executed by key community members for key community members.
Prom DAO would have a clear inside structure (which we will cover further) and would be fully powered by $PROM as a governance token, representing the DAO membership.
Prom DAO decision-making is flexible and not limited to certain types of decisions. Upgrading core contracts, fixing vulnerabilities, performance enhancements, and UX improvements might all be propelled through the DAO voting process.
A decentralized governance model is the most transparent and fair way to build a self-sufficient development mechanism that is driven by the community’s initiative.
The Prom DAO Structure: Delegates & Validators
Prom DAO will have a clear role-oriented structure so that it can efficiently run the decision-making process, from idea proposals to final implementation.
Core roles of Prom DAO are Delegates, Validators, and Members. Delegates act as representatives of other $PROM holders and Validators maintain the right curve of product development by double-verifying proposals. All three of them benefit from participating in the life of DAO in a specific way. Learn more about it further in the article.
The number of delegates is not tied to any specific number due to the nature of the role, while the number of Validators changes depending on the project needs.
As we noted above, Delegates and Validators will be rewarded with a share of the network fees and their incentives depend on the overall network activity. Delegates share equals 30% of the network fees, while Validators get 2% (remember, that the number of DAO Validators is more limited in comparison to Delegates).
If a certain $PROM holder wants to delegate a part of his tokens to a community member, he locks tokens on Prom Governance portal and transfers minted voting power to a chosen delegate. This creates a beneficial exchange. Initial $PROM holders get passive rewards from delegating tokens, while the rewards of delegates are based on several factors: share of 30% of total network commissions, total value locked, and amount of delegated tokens.
We understand that this might seem complex at first glance. However, we’re here to make things clearer. Let’s simplify it together with an example:
Important note: the given numbers are used as a reference and do not reflect the real network figures. All rewards are distributed in $PROM tokens.
Consequently, higher the network activity = higher fees = bigger rewards for Validators and Delegates. For example, if we model a x10 increase in the network activity, the rewards would rise in the following way: Individual Delegate would get 1,500 $PROM, and Individual Validator 10,000 $PROM.
Member
The core power of every DAO. In Prom’s case, every $PROM holder can become a Prom DAO member to help shape the future product. DAO members participate in the decision-making process, are welcome to propose their own ideas and vote on the initiatives of others. The role of a DAO member isn’t limited by the time a certain holder was a part of the community. Visions of seasoned users and new community members are equal for fast-forwarding the development.
Members can also benefit from supporting Prom DAO and participating in the proposal voting. Members proportionally split a predefined share of the total proposal quorum. The reward each member gets for voting is tied to the amount of $PROM used as voting power and calculated proportionally to it, and also to the frequency of participation in the voting.
Delegate
A delegate role is similar to an elected representative who got the voting power from another $PROM holder. Let’s dive a bit deeper into the logic of it.
There are a lot of $PROM holders out there who are interested in the growth of the product but don’t have enough time on their hands to participate actively in the decision-making process. Again, the amount of the rewards DAO members get partially depends on the frequency of voting, thus some holders might lose a significant chunk of possible rewards due to the limited amount of contributed time.
In this case, holders can delegate a part of their $PROM tokens and, consequently, their voting power to another DAO member.
This option creates a mutually beneficial exchange: delegates collect more voting power and both initial holders and delegates are rewarded with a predefined share of the total proposal quorum.
Validator
Validators serve as a special secondary layer inside the DAO. Their primary mission is to review and confirm the proposal that passed the initial voting phase.
View Validators as a special security committee that supervises the functioning of DAO, provides additional due diligence of proposals, and stands above delegates and members in the Prom DAO structure. Validators are highly important for maintaining the right development curve as they ensure the proposals act in favor of Prom in general and don’t harm the vision of the product.
About Prom
Prom is a modular ZkEVM Layer 2 that enables interoperability across various chains, including both EVM and non-EVM compatible networks. Prom submits its proof of transaction to the additional chains on top of the chosen Settlement chain, building the bridge between ecosystems.
Follow Prom:
Website: prom.io/
Twitter: twitter.com/prom_io
Telegram Announcements: t.me/prom_ann
Telegram Chat: t.me/prom_io
Discord: discord.gg/prom
CMC Gravity: coinmarketcap.com/community/profile/Prom
YouTube: www.youtube.com/channel/UC2mC_ZMPnrivHGgz5CaZnvQ
