# Constitution

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This is a living document, updated as constitutional DIPs are passed. For the most up-to-date information on the constitutional proposals in effect, see Defi App's [governance portal](https://app.defi.app/governance) or [Snapshot space](https://snapshot.box/#/s:defi.app).
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This document, the Defi App Constitution, describes the governance structure and procedures of the Defi App DAO as defined through a series of [Defi App Improvement Proposals](/knowledge-base/governance/improvement-proposals.md) (DIPs). The Constitution evolves as more constitutional DIPs pass.

***

## Key Terms

* **DIP**: [Defi App Improvement Proposal](/knowledge-base/governance/improvement-proposals.md)
* **$HOME**: The governance token of Defi App DAO
* **Staked $HOME**: HOME tokens locked in official staking contracts
* **DAO Council**: Core contributors responsible for proposal evaluation and execution
* **Vote Power**: Your account's influence on voting, based on your $HOME

***

## Section 1: DAO Formation & Authority

[DIP-001](https://snapshot.box/#/s:defi.app/proposal/0xdefe4a76a85b15cdc7c1f3ea6a5307dedff55e05d48614c4431a96af9e3e54b8) establishes the Defi App [DAO ](#user-content-fn-1)[^1]and a system for the community to vote on protocol changes, treasury actions, and integrations.

The DAO executes community decisions.

***

## Section 2: Proposals and Voting Procedures

#### **Proposal Types**

* **Constitutional DIPs**: Change core governance. Requires 1M $HOME vote power to pass.
* **Non-Constitutional DIPs**: Concern upgrades, budgets, etc. Requires 500K $HOME vote power to pass.

#### **Proposal Lifecycle**

1. **Warmup (24 hours)**: Open forum discussion.
2. **Voting Period (5 days)**: Voting on the [governance portal](https://app.defi.app/governance) or [Snapshot](https://snapshot.box/#/s:defi.app) space.
3. **Implementation**: Executed by the DAO if vote passes thresholds.

***

## Section 3: DAO Council and Working Groups

[DIP-002](https://snapshot.box/#/s:defi.app/proposal/0x353373435b0a4183a4b0531685c7bc875975e74bc6e6a47d3ca28326d895cf8c) establishes a DAO Council with formal authority to submit and execute proposals. The council streamlines governance by synthesizing community suggestions into formal proposals, then executing them with the appropriate **working group,** or functional divisions of the DAO organized by domain.

Council members submit final proposals to Snapshot. The appropriate working group executes proposals that pass. The working groups are:

* **Executive Operations,** responsible for proposals such as constitutional changes, treasury allocation, budget approvals, and governance framework modifications.
* **Technical Infrastructure,** responsible for proposals such as protocol upgrades, smart contract modifications, infrastructure changes, and security implementations.
* **Community Development,** responsible for proposals involving strategic partnerships, marketing initiatives, community programs, and ecosystem development funding.

#### **Community Contribution Flow**

1. Suggest ideas via Discord forums.
2. Community Stewards review inputs.
3. Viable ideas are escalated to formal proposals and put to a vote.

***

## Section 4: Token-Based Governance

[DIP-003](https://snapshot.box/#/s:defi.app/proposal/0x35f232fdee6bcb69ef4af411052ed8ee8460839da8b595857965742141e01559) establishes governance via HOME tokens. Voting power depends on an account's HOME token staking and holding behavior.&#x20;

Staking is worth 4x the voting power granted by holding liquid $HOME.

**Voting Power** formula:  `(Staked $HOME × 4) + (Liquid $HOME)`

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Your liquid $HOME balance is the sum of your holdings across **Base** and **BNB Smart Chain** network&#x73;**.**
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**Voting Requirements**

* **Constitutional DIPs**: 1,000,000 $HOME vote power
* **Non-Constitutional DIPs**: 500,000 $HOME vote power

***

This Constitution is binding upon the DAO and evolves through Constitutional DIPs. Follow updates and participate via the Defi App [governance portal](https://app.defi.app/governance) or [Snapshot](https://snapshot.box/#/s:defi.app) space.

[^1]: Decentralized Autonomous Organization


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