# DAO Structure & Governance

Axion DAO will operate under a hybrid governance model that combines token-weighted voting, legally recognized membership rights, and limited administrative oversight to facilitate timely decisions and transparent protocol management.

This section provides an overview of the DAO’s foundational governance framework, voting mechanics, and structural roles.

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### What is a DAO?

A **Decentralized Autonomous Organization (DAO)** is a blockchain-native entity that operates without centralized control, governed instead by smart contracts and community consensus.

Axion DAO will be enhancing this model by registering as a **DAO** in the State of Utah, giving it legal recognition and protections under State law.

***

### Legal Structure

* **Registered As:** Limited Liability Decentralized Autonomous Organization (LLD)
* **Jurisdiction:** State of Utah, USA
* **Governing Legislation:**
  * [HB0357 – Utah DAO Act](https://le.utah.gov/~2023/bills/static/HB0357.html)
  * [Utah Cooperative Association Act – ULCAA](https://le.utah.gov/xcode/Title16/Chapter16/C16-16_1800010118000101.pdf)
* **Operational Identity:** Structured as a Cooperative owned by its members

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### Key Governance Roles

#### 1. **DAO Owners**

* Defined as all wallet addresses that have an active, locked stake in AXND
* Ownership within the DAO is determined by the weight and duration of an individual’s stake relative to the total staking pool
* Owners are eligible for revenue-sharing once their stake matures

#### 2. **DAO Members**

* Membership is verified through the ownership of a **DAO Membership NFT**
* Membership is **required to vote**, submit proposals, and withdraw monthly interest
* Membership is valid for one year and renewable (Unless you own a Founders NFT)
* First-year membership is included with each member's first Accelerator stake

#### 3. **Mastermind Council**

* A limited administrative body authorized through DAO vote
* Responsible for:
  * Managing DAO operations (site, tools, communications)
  * Approving small-scale contracts and hires (≤ $25K per task or retainer)
  * Managing liquidity adjustments (≤ 20% of liquidity pool)
  * Proposing and reviewing DAO-wide initiatives

*The Mastermind Council does not have unilateral authority over funds or token issuance. All major decisions or changes require a community vote.*

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### DAO Membership vs. DAO Ownership

| Feature                       | DAO Ownership            | DAO Membership            |
| ----------------------------- | ------------------------ | ------------------------- |
| Based On                      | AXND Stake               | NFT Pass (Annual)         |
| Duration                      | Duration of stake        | 1 year (Renewable)        |
| Grants Voting Rights          | ❌ Not on its own         | ✅ Yes                     |
| Eligible for Revenue Share    | ✅ Based on amount staked | ✅ If stakes are also held |
| Access to Proposal System     | ❌                        | ✅                         |
| Required to Withdraw Interest | ❌                        | ✅                         |

***

### Voting Mechanics

* **Proposals** may be submitted by the Core Team or any DAO Member
* **Votes** are tallied based on the number of AXND tokens locked in a wallet at the time of the vote
* **1 AXND = 1 vote**
* Voting periods and thresholds are set in the smart contract or specified in the proposal terms

✅ **Quorum Requirements:** Determined by proposal type\
🔐 **Snapshot System:** Voting snapshots are taken on-chain at vote open\
🗳 **Vote Options:** FOR / AGAINST (or multiple-choice, if applicable)

***

### Administrative Authority: Mastermind Council

Authorized via the November 2024 DAO vote, the Mastermind Council was granted limited authority to manage the following:

* ✅ Pay bills and maintain infrastructure
* ✅ Manage public messaging and press
* ✅ Approve or decline partnerships
* ✅ Review investment opportunities (not authorize them)
* ✅ Approve hires below $10K per scope
* ✅ Hold quarterly public meetings for transparency

The Council is subject to community oversight and cannot modify tokenomics or deploy treasury assets beyond its authorized scope.

***

### Proposal Lifecycle

1. **Drafting:** Created by DAO Member or Core Team
2. **Review:** Optionally vetted by Mastermind Council
3. **Submission:** Posted to the official DAO interface
4. **Voting Period:** Defined in proposal metadata (e.g., 14–30 days)
5. **Execution:** Smart contracts automatically carry out approved actions (or routed to dev team)

***

* Community Proposal Forms (Coming Soon)
  * Community proposals must be complete. You will need to do some work.
  * The team will need to determine if the proposal is executable.
  * The Mastermind Council will review proposals.
  * The Mastermind Council must approve proposals to be published. (Until a more automated process has been created)
  * Submitted proposals will be available for the public to view.

📌 *You can view past DAO proposals and their outcomes in the* [*DAO Voting Archive*](https://stake.axion.network/dao)*.* 

Next: Explore Tokenomics & Economics to understand how AXND supports the ecosystem.


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