The Silo DAO
Silo will launch with a fully decentralized DAO — we call it the Silo DAO. The governance token ($SILO) gives the holder a say in the future of the protocol through voting and delegation rights. The core contributors team have laid the foundation for the protocol to flourish, but it is the community that will ensure we become the leading protocol for secure money markets. We ask the community to join the journey. It is open for everyone.
Silo implements OpenZeppelin Governor - a governance model of delegated voting, similar to one Compound uses. To ensure the technological implementation goes smoothly in the early days of the protocol, the core development team will act as the warden of the protocol and the executor of snapshot-based votings. The development team will not have any control over the Silo DAO’s treasury at any point. Meanwhile, the community will retain 100% control over the Silo DAO’s treasury, and can create proposals to affect changes through voting. As the dust settles following the protocol launch, the development team will slowly hand over the administrative responsibilities entirely to the Silo DAO.
With the delegated governance model implemented, token holders can vote on proposals or delegate their voting power to other members of the community to vote on their behalf.
Silo will be governance-minimized. Money markets are permissionless and therefore don’t require any active intervention by governance to create or operate.
Token holders are be able to vote on the following aspects among others:
- Increasing token supply. This functionality is something the DAO might consider to remove at any point and effectively place a perpetual hard cap on token supply.
- Directing the protocol-controlled assets to where it’s beneficial to the growth of the protocol.
- Turning on/off DAO’s revenue mechanisms.
- Adjusting collateral factors such as LTV and Liquidation Threshold for each Silo.
- Approving important product milestones.
Similar to established DAOs, the Silo governance forum will be a place where governance members can share their opinion by broadcasting proposals to the other members of the organization. Each token holder can then vote to accept or reject any proposal.
We believe community control will be achieved through a fair and public distribution of the Silo DAO’s governance. We will publish more information about the token distribution soon.