📐Basic Principles

The Mars project is a Decentralized Autonomous Organization (DAO) governed by the community of Decentralized Mars Token holders. No other person or entity has reserved rights to influence the project parameters, including the smart contracts owner.

The Mars project governance exists in 2 forms:

● On-chain governance is performed under control of the governance smart contract.

● Off-chain governance is performed using the Snapshot software.

On-chain governance

When on-chain governance is applied, every action, including proposal submissions and voting, is a blockchain transaction. The drawback is that all these actions will require network fees (gas) to be paid by the participants. The outcomes are: all votes are immutably and reliably stored on the blockchain; approved decisions may be automatically fulfilled by the governance smart contract.

To submit a proposal, a user must stake 100,000 $DMT tokens. These tokens will be locked in the governance contract until the end of voting on the proposal. The staked tokens will be returned only if the proposal is approved or quorum not reached. Otherwise, the staked tokens will be burnt.

Voting for each proposal lasts for 7 days. Every Decentralized Mars Token holder may vote for any proposal.

The number of votes equals the number of tokens in possession. To vote, a user sends their Decentralized Mars Tokens to be temporarily locked in the governance contract to prevent double voting. The tokens are returned when the voting ends.

To approve a decision, a certain share of Decentralized Mars Token holders must vote according to the quorum threshold. The initial quorum threshold is 10% and may be changed by governance.

Therefore, we use on-chain governance only for decisions that can be done fully automatically:

● Prediction outcome decisions during the dispute and voting phases.

● Create a new prediction market.

● Change oracles for a prediction market.

● Transfer tokens from the core team pool, the strategic investors pool, the ecosystem pool or the fundraising pool to a specific wallet.

● Change the oracle fee level.

● Change the protocol fee level.

● Change the receiver of the protocol fee.

● Change the period for oracles to make decisions.

● Change the length of the dispute phase.

● Change the length of the voting phase.

● Change the quorum threshold.

● Change the amount of tokens staked by an oracle.

● Change the amount of tokens staked to start a dispute.

● Change the amount of tokens staked to submit a proposal.

Off-chain governance

Off-chain governance is used to discuss and vote for decisions that cannot be formalized within the governance smart contract. Examples of these decisions could be:

● Propose development of new features.

● Preliminary voting before submitting an on-chain proposal.

Off-chain governance uses Snapshot as a voting platform. Only Decentralized Mars Token holders are eligible to vote. The off-chain decisions are advisory and are fulfilled by the core project team.

Mars Economy launched with fully decentralized governance from Day 1 by implementing a decentralized governance module. This gives control of the protocol to Decentralized Mars Token holders, meaning that updates to the protocol and management of the treasury can only be performed with approval from token holders.