Phase I Governance Framework
Introduction
This document outlines the Phase I governance framework for Neverland. It is intended as a reference for veDUST holders, prospective delegates, and community members participating in the protocol’s governance process.
Phase I establishes the initial framework through which directional decisions are made by the DAO. It defines how proposals are introduced, discussed, voted on, and executed, and clarifies the division of responsibilities between the community, the core team, and the Sentinel Safe.
Progressive Decentralization
Phase I is intentionally lightweight. Rather than introducing complex governance machinery at launch, the framework prioritizes building participation habits, establishing clear processes, and decentralizing progressively as the ecosystem matures.
Early-stage governance comes with unique realities. Circulating supply is still relatively low, governance participation is still developing, and operational structures are still evolving. The Phase I framework is designed to evolve progressively alongside the DAO itself, introducing broader decentralization and governance responsibility as participation, distribution, and the ecosystem continue to grow.
Governance Structure
Governance responsibilities under Phase I are divided into two distinct areas.
Operational Governance
Operational responsibilities remain with the core team. This includes:
- Day-to-day ecosystem coordination
- Partnerships
- Protocol operations
- Communications
- Ongoing execution
This structure allows Neverland to continue moving efficiently during its early growth stages without unnecessary governance bottlenecks slowing development and ecosystem expansion.
Directional Governance
Directional governance is where the community participates directly. It includes decisions surrounding:
- Protocol direction and strategy
- Governance framework changes
- Asset listings
- Risk-related matters
- Other strategic protocol matters
These decisions move through the formal governance process described in the following sections. The changes made through directional governance votes influence the operational direction.
Request For Comment (RFC)
Governance discussions begin through Requests For Comment, publicly discussed on the Neverland Governance Forum.
Community members are encouraged to submit RFCs directly. A well-formed RFC is expected to clearly explain the problem being addressed, include supporting research or reasoning, and propose a realistic solution or implementation path.
During Phase I, there is intentionally no fixed minimum discussion period before proposals advance to voting. Instead, proposals are allowed to mature organically through public discussion while the core team acts as a governance facilitator, helping determine when proposals are sufficiently complete and actionable to proceed to a formal vote.
This approach allows governance discussions to remain flexible and productive while preventing rushed or incomplete proposals from prematurely reaching a vote.
Neverland Governance Votes (NGVs)
Once an RFC is ready, it may advance to a Neverland Governance Vote, which takes place through the Neverland Vote Portal.
The governance system includes delegation support, including time-limited delegation. Governance participation is designed to remain flexible and accessible while still encouraging long-term alignment through veDUST participation.
Voting Rules
Phase I voting mechanics are intentionally simple and transparent.
Voting Period
Each NGV lasts for 7 days.
Voting Power
When a vote begins, a snapshot of all voting power is taken. A user’s voting power for that specific vote remains fixed for the duration of the voting period, even if their veDUST balance changes afterward.
Voting power is based on veDUST power at the time of the snapshot, including the effects of lock duration and veDUST decay. Voting power is not based on liquid DUST balances or the total amount of locked DUST alone.
Quorum and Outcome
For a vote to be considered valid, an initial quorum of at least 500,000 veDUST voting power must participate. If quorum is not reached, the proposal is nullified due to insufficient participation. If quorum is reached, the option receiving a simple majority of votes determines the outcome of the proposal.
The initial quorum threshold serves as a starting point and may evolve over time. As governance activity and participation patterns become clearer through real proposal data, quorum requirements may be adjusted to better reflect meaningful community participation.
Execution
The approval of an NGV establishes the intended direction and outcome endorsed by the DAO.
Operational execution, implementation planning, coordination, and development responsibilities remain with the core team, which is responsible for organizing and carrying out the actions required to fulfill the proposal’s objective. Final onchain execution and administrative actions are performed asynchronously through the protocol multisig and governance infrastructure via the protocol’s timelock lanes.
Forward Outlook
Phase I establishes the initial governance framework of Neverland. It is an introductory framework designed to establish strong foundations while remaining flexible enough to evolve over time.
As the DAO matures, participation grows, and governance processes continue developing, the governance framework will continue evolving alongside the ecosystem. Future governance structures, expanded decentralization mechanisms, and additional community governance responsibilities may all be explored collaboratively over time.