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Governance

Governance

Governance·3 min read·Updated 2025

A DAO is a blockchain-based organizational model that operates through token mechanisms. Values DAO uses sVALUES tokens as its governance foundation, with voting rights proportional to holdings.

01How it works

Token holders gain voting rights proportional to their holdings, enabling participation in organizational decisions. When a proposal arises — such as a smart-contract modification — holders vote, and approved proposals execute automatically through the smart-contract infrastructure. Every transaction and decision is recorded on a public blockchain and remains auditable by anyone.

02Benefits

  • Decentralized decision-making — power is distributed among token holders rather than concentrated in leadership.
  • Efficiency and transparency — intermediaries are removed while public accountability is preserved.
  • Independence — the DAO can operate where traditional structures face constraints.

03The process

Values DAO operates on the Polygon blockchain using sVALUES tokens. The process follows four stages, ensuring every stakeholder has an equal say while transparency is maintained through on-chain recording.

01

Proposal

Members suggest an organizational change.

02

Voting

Token holders vote in proportion to their sVALUES holdings.

03

Quorum

A proposal must clear the minimum vote threshold set in the smart contract.

04

Execution

Approved proposals execute automatically, on-chain.