DAO Governance Framework and Moderation


This framework outlines the guiding principles and essential elements governing the decentralized autonomous organization (DAO) of the Hydrachain protocol. Its purpose is to provide a framework that ensures trust, transparency, security, and the well-being of the protocol while fostering a professional, ethical, and respectful environment for growth, problem-solving, and critical thinking.

By joining and being part of the HydraDao Discourse Forum, you agree on adhering to the framework with all of its terms.


  1. Trustless Voting

All voting shall be conducted in a trustless manner, ensuring no manipulation could take place, and maintaining the integrity of the voting process. Each vote should have full on-chain activity involving participation via the core consensus of Hydra.

  1. Inflationary Pressure Management

Due to DAO fund spending leading to inflationary pressure, spending decisions must be made with extreme care and after coherent discussions and elaboration of the principles, goals, risks, and opportunities behind each expenditure proposal. The high-end goal is to achieve a net deflationary effect and/or strategy growth effect through multiple properly executed proposals.

  1. Long-term Spending Program Evaluation

Long-term spending programs shall be re-evaluated at least once per 12 months for their continued efficacy and impact on the protocol’s well-being.

  1. Mandatory Step-based/KPI Spending System

A step-based spending approach must be mandated for every proposal related to a service/retainer-based proposal. The proposal should include a clearly communicated trial period with specific KPIs for evaluating efficacy. Strong attention should be made to the particular KPIs that will be the subject of evaluation.

  1. Protocol Well-being and Collective Consciousness

To ensure the well-being of the protocol and enable it to function as an intelligent organism with the collective consciousness of all members who participate in the voting process, spending decisions must be made with the long-term sustainability and growth of the protocol in mind.

  1. Service Provider Selection

In case a service provider for a conventional service is being hired for and approved as a DAO spend, the proposal should have a clear service pricing breakdown with a precise delivery timeframe.

  1. Proposal Cancellation

In case a proposal is deemed a mistake, a secondary proposal can be initiated to pause and/or cancel the initial one indefinitely.

  1. DAO Forum Conduct

The DAO Forum shall maintain a professional, ethical, and respectful environment. The forum is under strict moderation and intends to create a digital work environment where efficiency, logic, and rational discussions are at play.

Any form of harassment, hate speech, or emotional outbursts will not be tolerated and could result in a ban. Unlike the public community channel, The DAO forum is a core project which focuses on execution and requires an above-average level of engagement. The DAO forum is a place for nurturing peer effort and respecting healthy debates based on expertise and proper research and analysis.

  1. Pitching Ideas and Proposals

Any idea can be pitched in the relevant channels by any member (including non-Hydra users), as long as it is accompanied by proper argumentation. After public discussion in the relevant channel, the idea can be structured into a proposal and posted into the active voting channel.

  1. DAO Forum Administration

The DAO Forum can initiate votes that elect officials for administering community administration of the forum.

  1. Self-sufficiency and Engineering Team Management

One of the highest objectives of the DAO is to achieve self-sufficiency and not depend on any single individual. In this context, the DAO must be capable of employing, managing, rewarding, and assessing the engineering team responsible for the long-term development of the HYDRA protocol, allowing it to grow into a global, community-driven team with strong work processes and a focus on innovation and security.

  1. Security Prioritization

Security is a top priority, and new projects pending development should be classified according to their security impact as low, medium, or high impact. The DAO should work closely with independent security auditing contractors to perform thorough security auditing of such deployments.

Projects classified as medium and high impact should undergo mandatory security auditing.

  1. Program Execution and Administration

Certain proposals for program executions can be bonded with program administrators /a.k program manager/ provided that clear KPIs are pre-approved as a methodology for reporting the efficacy of the program and ensuring the justification of any funds spending. The purpose of these program managers is to iterate a “mid-level-management” type of operation role that would make the execution more effective. The reward of these program managers should always be in accordance with the principles defined in this governance framework and with continuous re-assesment for deliverability and pre-defined KPIs.

  1. Tax and Legal Compliance

For purposes of tax and legal compliance, the DAO has no particular nexus and no particular owner. It is a community project that acts in accordance with the priorities for building and sustaining the utility of a fully-decentralized and fully permissionless blockchain protocol of Hydra. It has no beneficiary and no principal. HYDRA was not offered via any public offering and has spurred life as a consequence of community adoption.

  1. Cross-functional Collaboration

This framework encourages cross-functional collaboration between community members, engineers, administrators, and other stakeholders to drive the growth and development of the Hydrachain protocol.

  1. Charity, Religious, Gambling and Political Proposals

For the purpose of avoiding legal, compliance and community disputes, and in accordance with Chapter 2, Charity, Religious, Gambling, and/or Politically motivated proposals are strictly forbidden for DAO treasury spending. Such activities should be executed solely via private community initiatives, which would be considered outside of the scope of the DAO objectives.

  1. Liquidity, Exchange Listings, and other High-priority Infrastructure

As a reminder of the main objectives set forth in the Hydra whitepaper, the following four main categories for spending can be defined.

  1. Security: via staking, economic modeling, security auditing, and proper devops processes.
  2. Liquidity: via incentives and economic modeling. Any non-staking spending to be executed in accordance with all principles set in this Governance framework. Exchange listings fall into the liquidity infrastructure sub-category and are to be focused only on Tier 1 Exchanges (ranking in top 10 of CMC and CG), and under the condition that
  • proper listing agreements will be in place
  • a thorough audit for wash trading practices is done as part of the quality evaluation
  • Special consideration of the capital demands for each new listing
  1. Marketing: Due to the general state of immaturity of the blockchain industry, private-based marketing services to be dealt with extreme caution and under very strict supervision and KPIs, in accordance with the principles set in this document
  2. Engineering and innovation: In accordance with Chapter 12, high priority to be placed in structuring a fully-remote, expert team of engineers that would be capable to sustain the needs of the protocol in the long term.

Liquidity and Exchange listings would receive special treatment in accordance with Hydra’s Whitepaper and due to their scalable and non-custodial inclined nature, they are likely to receive an overweight proportion of the DAO funds.

Continuous Improvement

The DAO shall strive for continuous improvement, regularly reviewing and updating this framework to reflect the evolving needs and priorities of the Hydrachain community.

Conclusive statement

The Hydrachain DAO Governance framework serves as the guiding document for all activities related to the DAO. It is designed to provide a legal, transparent, and accountable framework for the community, fostering trust, professionalism, and ethical conduct while ensuring the long-term success and sustainability of the Hydrachain protocol.