Governance
$TNSR
$TNSR is the governance token used by the community to manage key parameters of the Tensor protocols.
Additionally, $TNSR can be used by holders to get discounts when trading on Tensor protocols. If the listing is created in $TNSR, the protocol fee is reduced by 25%.
Contract address is TNSRxcUxoT9xBG3de7PiJyTDYu7kskLqcpddxnEJAS6.
Proposal Types
Tensor Improvement Proposals (TIPs) fall into the following 3 categories:
Protocol
Proposals that change important protocol parameters. Currently governable parameters include:
Total % fee that is collected by the marketplace protocol (initially 2%)
Total % fee that is collected by the AMM protocol (initially 2%)
Total % fee that is collected by the Price Lock protocol (initially 25% of the ~3% fee charged)
% fee split between the protocol and the front-end that generated the transaction (initially 50/50)
The 50/50 fee split between the protocol and the front-end that generates the transaction is an intentional design choice by the Foundation to promote integrations on top of Tensor protocols. NFTs are a diverse asset class and specialized front-ends are key to the success of the underlying trading infrastructure.
For the front-end portion of the fee, further % split between the maker and taker (initially 80/20)
Example: if the front-end fee is 1 SOL, and a listing is taken, the front-end that facilitated the listing gets 0.8 SOL and the front-end that facilitated the purchase gets 0.2 SOL. Equally, if the front-end fee is 1 SOL, and a bid is taken, the front-end that facilitated the bid gets 0.8 SOL and the front-end that facilitated the sale gets 0.2 SOL.
Process
Proposals that change the process, procedures, guidelines, or tools used for governance by Tensor DAO.
Example: proposal to change the threshold for future proposals to pass.
Operations
Special initiatives relating to branding, marketing, and operations.
Example: proposal to change the logo or the font used in marketing materials by the Foundation.
Proposal Drafting
Proposals on the forum should follow the below format.
1 Title and Type
Short title that succinctly conveys the essence of the proposal and a type select from one of the above.
2 Abstract
Summary in the form of a short abstract. No more than one paragraph.
3 Motivation
An explanation of why the DAO or the Foundation should consider this proposal for implementation.
4 Glossary
A clarification of any specialized terms or industry-specific language used within the proposal.
5 Detailed Plan
An in-depth description of the proposed changes, including the technologies or methods for implementation, along with a detailed action plan outlining steps and a timeline for execution.
6 Benefits & Risks
An evaluation of potential benefits and risks associated with the proposal.
7 Results
A concise description of the anticipated outcomes of the proposal.
8 Finances
An outline of the overall financial requirements for the proposal, with detailed breakdowns as necessary.
9 Milestones (if relevant)
Any milestones that might be relevant.
Proposal Guidelines
Proposals should adhere to the governing principles of the Foundation and other applicable laws and regulations (including of the Cayman Islands, where the Foundation operates). Non-compliance or contravention of these legal parameters may result in the rejection or invalidation of the proposal, or a veto by the Security Council (more below).
Proposal Conflicts
Should a proposal be in direct conflict with a proposal presently under consideration for voting, the latter proposal ought to be held back from voting until a resolution is reached on the initial proposal. This is to prevent the endorsement of contradictory stipulations.
In the event that a proposal is in direct opposition to an already approved proposal or identical to a previously unsuccessful proposal, it is not permitted to proceed to voting until three months post the implementation of the original proposal. This measure is in place to prevent the squandering of community resources.
Governance Process
Governance process consists of 3 steps:
Research forum discussion
Realms tokenholder voting
Security council review & execution
Forum
All proposals are initially discussed on the Tensor DAO research forums. Drafted proposals should follow the format outline above, in order to be considered.
The goal of this step is to solicit feedback and have an informed discussion carefully weighing the pros and cons of each proposal. The proposal should incorporate feedback and arrive at a generally accepted form before being put through to voting in Realms.
If the proposal doesn't incorporate feedback and/or doesn't address questions and concerns, it can be vetoed in subsequent steps by the Security Council to safeguard the Foundation and the DAO.
Discussion period: minimum 14 days
Link to Tensor DAO forum will be added shortly.
Realms
Once the proposal has been sufficiently discussed on the forum, addressing all questions and concerns, it can be submitted for voting on Realms. Any community member with a sufficient quantity of delegated tokens is able to submit the proposal.
Once submitted, the proposal is up for voting. For the first 3 days $TNSR tokenholders can vote with "yes" or "no". For the 2 days immediately after ("cool-off period") holders can switch their "yes" votes to a "no" vote, but can't vote "yes" anymore.
Voting is proportional to the $TNSR balance that a wallet holds. In order to vote, a tokenholder must deposit their tokens into Realms, or receive delegated tokens from another wallet.
After the cool-off is complete, if the proposal reaches the threshold to pass, it is passed on to the final step below.
Threshold to create a proposal: 250,000 $TNSR
Threshold to pass: 10,000,000 $TNSR "yes" votes and number of "yes" votes greater than "no" votes
Voting period: 3 days
Cool-off period: 2 days
Link: Tensor DAO Realms
Security Council
The final step is a security review by the security council. The security council is a group of 7 independent individuals exercising independent judgement for each proposal. The individuals are all prominent builders in the Solana ecosystem. They are tasked with securing Tensor protocols against malicious proposals and any other harm posed by governance attacks. Each security council member is paid $1000 monthly in $TNSR tokens exchanged at the going rate.
Once the security council reviews the proposal, the change is executed on-chain or off-chain depending on the nature of the proposal.
The proposal may be vetoed by the security council in accordance with applicable law or for other reasons including inconsistencies with the Foundation’s purpose as set out in the Foundation's A&R M&A. If veto authority is exercised, disclosure and explanation for the veto shall be posted on the relevant TIP within two weeks of the proposal’s passing.
51% (or 4/7) security council members must agree for a proposal to be passed or vetoed.
Execution deadline: 7 days post Realm vote completion
Last updated