Governance Rewards

Dinga DAO leverages DeXe.io for governance operations, ensuring a decentralized and community-driven decision-making process. We recognize that existing DAOs often struggle with low activity due to incentive imbalances. Members who invest time and cover costs in decision-making do not receive more benefits than less active members. This lack of differential rewards demotivates active participation, leading to decision-making often falling to a small, engaged group. This imbalance undermines both motivation and the principles of decentralized governance in DAOs.

To address this, Dinga DAO incentivizes members through rewards for their significant contributions to the organization's activities. This strategy encourages high-quality contributions and compensates members for the time and gas fees they incur.

Flexible Rewards System by DeXe DAO Studio

DeXe DAO Studio offers a customizable rewards system for DAOs, which can be tailored when creating a DAO or adjusted later via proposals and voting.

Reward Types

DeXe DAO Studio implements three main types of rewards for the voting phase that you can enable in your DAO:

  • Voting Rewards: Members who vote on accepted proposals receive rewards proportionate to their voting power. The distribution is based on the percentage of tokens involved in voting, ensuring that active participants are fairly compensated.

  • Proposal Creation Rewards: Members who create proposals that are accepted by the DAO receive rewards. This encourages initiative and ensures that only valuable proposals are rewarded, avoiding unnecessary expenditure. A fixed number of tokens are allocated as rewards for accepted proposals.

  • Transaction Execution Rewards: Members who execute transactions after a proposal is accepted receive rewards to offset their costs. A specific number of tokens are allocated for transaction execution.

Voting Rewards Distribution

The total rewards in a voting process are determined by the total number of tokens participating. For instance, if the DAO sets voting rewards at 1%, the aggregate reward for all members will be equivalent to 1% of the total tokens used in the voting process.

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