LightChain DAO Voting & Proposal Guide (LCAI)

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LightChain DAO Voting & Proposal Guide (LCAI)

Overview

This document provides a comprehensive and authoritative explanation of how governance, proposal creation, and voting function within the LightChain DAO. The system is implemented using the OpenZeppelin Governor framework and adheres to industry best practices for decentralized governance, including snapshot-based voting and vote delegation. All community members are strongly encouraged to review this document in full before participating in DAO activities.

1. Token Architecture Overview

Main Governance Asset – LCAI (Ethereum)

LCAI is the primary ERC-20 token deployed on Ethereum and represents the core LightChain ecosystem asset. However, the LCAI token itself does not implement the IVotes interface required by OpenZeppelin Governor.

Voting Wrapper – LCAI-Ballots

To enable governance functionality, LightChain uses LCAI-Ballots, a wrapped governance token. LCAI-Ballots is a minimal wrapper contract that provides:

  • deposit() – Wrap LCAI into LCAI-Ballots
  • withdraw() – Unwrap LCAI-Ballots back into LCAI

The wrapper does not introduce any additional logic beyond enabling IVotes compatibility. No minting, burning, or token modification occurs outside of direct user-initiated wrapping and unwrapping.

2. Why Wrapping Is Required

The OpenZeppelin Governor framework relies on IVotes to ensure:

  • Snapshot-based voting power
  • Vote delegation
  • Protection against vote manipulation

Snapshot voting ensures that once voting power is recorded, it cannot be altered by transferring tokens during an active vote. This prevents scenarios where a user could vote, transfer tokens, and vote again from another wallet.

Because LCAI does not natively support IVotes, LCAI-Ballots is required to meet these governance security standards.

3. Wrapping and Unwrapping Interface

All wrapping and unwrapping operations are performed at: https://ballots.lightchain.ai

Users maintain full custody of their tokens at all times.

4. Proposal Creation Requirements

To create a DAO proposal, the proposer must:

  • Wrap exactly 140,000 LCAI into LCAI-Ballots
  • Submit the proposal transaction
  • Unwrap the tokens immediately after proposal creation (optional)

Important Notes:

  • The wrapped tokens are only required at the moment of proposal creation
  • Tokens do not need to remain wrapped after the proposal is successfully submitted

5. Proposal Delay (24-Hour Voting Delay)

After a proposal is created, it enters a mandatory 24-hour delay period before voting begins.

Purpose of the Delay:

  • Allows the community sufficient time to:
    • Review the proposal
    • Wrap LCAI into LCAI-Ballots
    • Delegate voting power

This delay ensures fairness and equal access, preventing last-minute proposal launches that exclude active participants.

6. Delegation and Voting Eligibility

Voting power is determined at the snapshot block when voting begins.

Critical Rules:

  • Tokens must be wrapped AND delegated BEFORE voting starts
  • Delegation after voting begins does NOT count for that proposal
  • Only delegated voting power at the snapshot is eligible

Reason: Snapshot voting prevents manipulation and ensures voting power remains fixed for the duration of the proposal.

7. Voting Participation Flow

If you want to vote on a specific proposal:

  1. Wrap LCAI into LCAI-Ballots (before voting starts)
  2. Delegate voting power (to yourself or another address)
  3. Wait for the proposal to become active
  4. Cast your vote
  5. Immediately unwrap your tokens after voting (optional)

If you do not intend to vote on a proposal, no action is required.

8. Example: Treasury Burn Proposal (On-Chain)

Below is an example governance action for educational purposes only.

Example:

  • Action Type: Treasury transfer
  • From: Treasury contract
  • To: DEAD address (burn)
  • Purpose: Permanent supply reduction

This example demonstrates a standard on-chain execution using OpenZeppelin Governor.

Community members are encouraged to request assistance on the forum for:

  • Proposal calldata preparation
  • Multi-action proposals
  • Advanced governance actions

9. Key Security and Governance Principles

  • Snapshot-based voting prevents double voting
  • IVotes compliance ensures Governor compatibility
  • Wrapping is non-custodial and reversible
  • Governance actions follow OpenZeppelin audited standards

LCAI-Ballots exists solely to enable secure governance and introduces no additional risk or token mechanics.

10. Final Notes

LightChain DAO governance is designed to be:

  • Secure
  • Transparent
  • Fair
  • Aligned with best-in-class DAO standards

All community members are encouraged to actively participate and engage responsibly in governance discussions.

Example of creating Treasury Burn Proposal:

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