Governance Guide
- Introduction
This Governance Guide defines the governance framework for BlockEstateDAO, including voting procedures, proposal submission processes, member responsibilities, and decision-making structures. This guide ensures that all governance activities align with the principles of transparency, decentralization, and security as established by the DAO’s Articles of Organization, Smart Contracts, and Operating Agreement.
BlockEstateDAO operates under a structured governance model where token holders participate in financial decision-making but do not have governance rights over corporate operations or real estate asset ownership.
- Governance Structure
2.1 DAO Governance Bodies
BlockEstateDAO operates under a hybrid governance model, balancing decentralized decision-making with structured oversight. The key governance bodies include:
Board – Reviews project proposals, sets governance policies, and ensures legal and financial compliance.
Community Validators (Randomized Stakers) – A group of four (4) randomly selected stakers who vote on proposals approved by the board, ensuring fairness and reducing governance inefficiencies.
General DAO Members – Holders of Membership NFTs who participate in economic decision-making through staking and voting on financial proposals. Members do not have governance or ownership rights over the DAO or its corporate operations.
2.2 Tokenized Governance Model
Governance is conducted through BESD Tokens, which provide economic participation rights in financial decisions but do not grant control over assets or corporate governance.
Members may submit proposals, vote, and engage in governance discussions.
Voting power is based on participation in financial decision-making and is not tied to asset ownership or corporate control.
- Proposal Submission & Voting Process
3.1 Proposal Lifecycle
Proposal Submission – Any member can submit a DAO Improvement Proposal (DIP) via the DAO Forum, including:
Project details, objectives, and budget
Feasibility studies (if applicable)
Expected impact on the DAO and members
Board Review & Approval
The Board assesses the proposal for financial feasibility, compliance, and regulatory alignment.
If approved, the proposal advances to the validator voting stage.
Randomized Validator Voting
Four (4) randomly selected stakers vote on the proposal.
Each staker receives one vote, regardless of the number of tokens staked.
If approved, funds are allocated from the DAO Treasury.
If rejected, the proposal can be revised and resubmitted, provided it follows DAO financial allocation rules and does not grant governance or asset ownership rights to token holders.
On-Chain Execution
Upon approval, the proposal is executed through smart contracts.
Treasury funds are automatically allocated based on the approved budget.
3.2 Proposal Change Orders
If an approved proposal requires modifications, a Proposal Change Order (PCO) must be submitted.
The Board reviews and approves the change before a new validator vote.
If changes impact previously allocated funds, budget adjustments must be approved before reallocation.
- Voting Mechanisms
BlockEstateDAO employs different voting models based on the type of proposal:
Randomized Validator Voting – Used for financial and project-based proposals.
General Membership Voting – Used for financial participation decisions (excluding corporate governance).
Quadratic Voting – Ensures fair influence distribution in financial decisions without impacting corporate control.
Time-Weighted Voting – Prioritizes long-term stakers for financial distribution votes, ensuring compliance with utility token regulations.
4.1 Delegation of Voting Rights
Members may delegate voting power to a trusted representative.
Delegates must be registered within the DAO and cannot self-delegate.
- Treasury & Fund Management
5.1 Project Vault System
Each approved project has a dedicated vault for economic distributions, ensuring funds are used strictly for real estate profit distribution and financial allocations.
Once approved, funds are transferred from the vault to the project budget.
5.2 Additional Funding Requests
If a project requires additional funding, a new proposal must be submitted and approved.
The Board and validator voting process applies to additional funding requests.
All funding requests must align with financial structuring rules to ensure the BESD Token maintains its utility classification.
- Emergency Governance & Overrides
6.1 Emergency Actions
In case of security threats, smart contract vulnerabilities, or governance failures, an Emergency Governance Process can be triggered.
A multi-signature override system allows Board-approved emergency actions to pause, update, or patch smart contracts while maintaining compliance with the DAO’s financial governance policies.
6.2 DAO Governance Safeguards
Time-locked execution (48-72 hour delay) applies to emergency decisions for transparency.
Major updates must undergo a community Snapshot vote following emergency actions.
- Compliance & Legal Considerations
7.1 KYC/AML Compliance
Certain financial participation roles require KYC/AML verification, based on regulations in the U.S., U.K., and the Dominican Republic.
Compliance obligations are reviewed periodically to ensure adherence to global financial laws.
7.2 Governance Transparency & Audits
All governance decisions and fund allocations are recorded on-chain for full transparency.
Regular audits are conducted to ensure compliance with treasury and governance policies.
- Dispute Resolution
8.1 Governance Disputes
Disputes regarding voting outcomes or proposal approvals undergo a Snapshot community review.
The Board may intervene in cases of fraud, vote manipulation, or smart contract exploits.
8.2 Treasury & Fund Disputes
Disputes concerning fund allocation or misuse escalate to a DAO Oversight Panel.
- Amendments & Future Updates
This Governance Guide may be amended through a DIP proposal followed by a majority DAO vote.
Any major governance structure updates require approval via Snapshot voting before implementation.