back13 Feb 20243 min read
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Pyth DAO Constitution is Live

On February 13, 2024, the Pyth Network community has voted on-chain (627,748,981 for, 873,059 against) to approve the Pyth DAO Constitution (”Constitution”). This Constitution describes the decision-making framework for the Pyth DAO and the governing framework for the holders of the PYTH Governance Token.

This blog post explains the key concepts of this first iteration of the Pyth DAO Constitution, before outlining what the constitution means for the members of the Pyth DAO LLC (”Pyth DAO”).

What is the Pyth DAO Constitution?

The Pyth DAO Constitution describes the social contract between DAO members by defining the decision-making framework for the Pyth DAO and the governing framework for holders of the PYTH Token. In other words, the constitution lays out how the various Pyth Network participants may interact for the purposes of community-led decision-making.

A critical component of this decision-making is on-chain voting by Pyth DAO members; Pyth Network community members who stake PYTH Tokens will become a members of the Pyth DAO and gain on-chain voting power from their stake.

Pyth Governance is expected to be responsible for helping determine the following:

  • The size of (oracle) update fees.
  • The reward distribution mechanism for data providers.
  • Approving other software updates to on-chain programs across blockchains.
  • How products (data feeds) are listed on Pyth and their reference data.
  • How data providers will be permissioned to provide data for price feeds.

The above list is only a subset of what Pyth Governance is expected to cover. Explore the whitepaper to learn more.

Exploring the Constitution

The inaugural version of the Pyth DAO defines important terminology and procedures for conducting Pyth Governance and is stored here.

The Pyth DAO LLC and You

Key among the concepts covered by the Constitution is the Pyth DAO LLC, an algorithmically-managed non-profit limited liability company.

The Pyth DAO LLC, among other capabilities, enables Pyth DAO members to take part in governance by providing a framework in respect to the rights and duties of PYTH Token holders. Individuals or entities who stake PYTH Tokens in the staking program will become members of the Pyth DAO LLC. Learn more here.

Pyth DAO Governance Procedures

Pyth Improvement Proposals (PIPs) are the primary methods to introduce, discuss, and implement changes to the Pyth DAO Constitution, governance, and the oracle network’s operations.

Ideation and discussion of PIPs are expected to take place within the official governance forum channel in the Pyth Network Discord server. Proposals that are ready for on-chain voting for final approval will be taken to the Pyth Governance platform on Realms.

The Constitution lists the types of PIPs that DAO members can introduce and the process for submitting, voting on, and implementing a PIP.

Council Election Process and Voting Procedures

The Constitution identifies the Pythian Council and Price Feed Council, whose members will be signers of the Pythian Multisig Wallet and Price Feed Multisig Wallet respectively.

The Pythian Multisig Wallet has the power to perform actions delegated to it by the Pyth DAO. The Price Feed Multisig Wallet has the power to perform actions that are delegated to it by the Pyth DAO.

The Constitution defines the number of members per council, the approval threshold for each multisig, and the nomination, election, and term length for all members.

Pyth Governance and You

The social layer components outlined in the Constitution also outline the next steps for Pyth DAO, including the election of council members to help steward the oracle network.

Next is the public nomination of candidates for the Pythian Council and Price Feeds Council seats. It is worth noting that candidates may nominate themselves. The Pyth DAO’s members will assess the nominees and their fit for these council positions from their public campaigns. Finally, Pyth DAO members will vote on-chain to decide which nominees become council members.

We can’t wait to hear what you think! You can join the Pyth Discord and Telegram, and follow us on X and LinkedIn.

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