TWIN DAO and Governance

Governance Voting

As a decentralized protocol governed by the TWIN DAO, TWIN Finance will rely on governance votes. After TGE, these votes are conducted by holders of the TWIN Finance Protocol Token (TWIN) who have locked their TWIN for a specified period (up to a maximum of 4 years) and received veTWIN (Voting Escrow TWIN Tokens) in exchange for their lock.

Voting participation will be incentivized through the issuance of TWIN reward tokens. This incentive aims to boost participation in the governance voting process, notwithstanding the associated gas fees.

TWIN DAO Grant Proposal Votes

To fund services provided to the TWIN community, 5% of all TWIN tokens are allocated for TWIN DAO Grants. Grant applicants with veTWIN balance of 100,000 tokens or more can request a grant for anybody of up to 100,000 TWIN tokens, which is subject to approval through a subsequent DAO voting process. During the seven-day voting period, users can cast their votes on the proposal. After this period, any user can close the vote. If the majority of votes support the proposal, the DAO automatically transfers the grant amount in TWIN tokens.

Upgrade Proposal Votes

TWIN's primary smart contracts are structured as proxy and implementation contracts. The proxy contracts, holding all state variables such as balances, are entirely immutable, but the implementation contracts can be altered. Unlike other projects that assign proxy contract ownership to a multi-sig wallet, TWIN has chosen a different approach to maximize decentralization. The ownership of all proxy contracts is assigned to a smart contract (Upgrader.sol), which can change an implementation contract only after a successful TWIN DAO upgrade vote has concluded. To propose an upgrade vote, users of the TWIN Finance protocol must possess a veTWIN balance of at least 500,000 veTWIN tokens. The contracts that can be upgraded are as follows:

● AssetFactory

● VoteMachine

● DAO

● RewardsMachine

● MarketFactory

● VotingEscrow

● Upgrader