⭐Rewards Distribution

Rewards for substantial contribution to the organization's activities are a fundamental tool that incentivizes DAO members, encourages quality contributions, and compensates for the time and gas fees incurred.

When creating a DAO using the Protocol, you can easily set up rewards for your community:

Voting Rewards

This type of reward is distributed for participating in a proposal vote that the DAO has accepted. In this case, everyone who voted "For" will receive rewards proportional to their voting power. You can configure the percentage of the voting power that will be rewarded when creating the DAO or change it later with a DAO decision (for which there is a standard proposal template in the Protocol).

Proposal Creation Rewards

This crucial type of reward is given for creating a proposal that the DAO later accepts. Such rewards encourage members to take the initiative. However, proposals that are useless or not accepted are not rewarded, ensuring that DAO members need to prove value to earn the reward and that the DAO does not waste funds. When creating a DAO, you set a fixed number of token rewards for creating a proposal.

Transaction Execution Rewards

This reward is meant to offset the costs for those executing transactions after a proposal is accepted. If there is a validation round of voting, the proposal is executed twice: 1) initiating a second round of voting and 2) executing the transaction at the end of the validation round. Transaction execution is also required for transferring off-chain proposals on-chain. You also set a specific number of token rewards for transaction execution.

Experts receive a 20% commission from the rewards for tokens delegated from ordinary DAO members, who, in turn, receive 80% of the rewards from the tokens they delegate. For tokens delegated from the treasury, experts receive 1.618% of the rewards. The remaining 98.382% are returned to the treasury.

After a proposal is accepted and executed, every DAO member participating in the voting can claim their rewards. If a user's tokens were delegated to an expert, they will receive rewards after the expert claims them or can claim the rewards instead of the expert.

Rewards can be distributed either in the governance token or in any other token available in the DAO's treasury. On top of that, 30% of the fees are directed to DeXe Protocol DAO’s treasury (the “Treasury”) to contribute to the further development of the Protocol and decentralized governance technologies.

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