Governance Proposal

The governance process for the protocol will continue to develop and evolve based on the community’s needs as the protocol matures. In a future Prosper Improvement Proposal (PIP), the community will have the opportunity to lay out guiding principles, participant expectations, and the general governance process going forward.

At a high-level, the initial structure for the governance process will follow the below. This process will be developed in more detail and put forward for ratification by the community.

Context for PIPs

• Snapshot: For voting on governance proposals.

• Commonwealth: For community discussion on governance proposals.

Overview of the process in full implementation

• Proposal creation: PROS token holders can start governance related discussions on the designated forum. Once a proposal has been formulated, it can be formally submitted to an advisory council for further review.

• Feedback period: Once a proposal has passed the initial review process, there will be a feedback period where DAO members can review and provide feedback. This period allows for transparency and informed decision-making, ensuring that all voices are heard before a vote. The length of this period will vary depending on the complexity of the proposal.

• Voting: After the feedback period, PROS token holders can vote on the proposal. Initially, voting power will be proportional to the number of PROS tokens held, with each token representing one vote. Additional voting strategies may be considered in the future.

• Implementation of decisions: Once a proposal passes, it will move to the implementation phase by the foundation. The implementation process will be transparent and communicated to the community.

• Checks and balances: To prevent harmful or rushed decisions, the initial review process will be important. As mentioned above, this process will be conducted by the advisory council to start. However, over time, this responsibility is expected to be spread across members of the community (e.g., a community council). Furthermore, any proposal that significantly impacts the protocol may require multiple stages of approval to be outlined during the proposal process.