# DAO The Sealed DAO is the community governance layer of the SLD token ecosystem. It is designed to give stakers a structured way to propose, discuss, and vote on how part of the ecosystem allocation should be used. The DAO is not limited to one predefined direction. Its purpose is to let the staking community decide what initiatives are worth supporting. Proposals may relate to Sealed, privacy, the Algorand ecosystem, tokenholder value, community growth, or other ideas that stakers believe are important. ### DAO allocation The DAO receives **20% of the total SLD token supply**. This allocation is divided into two parts. Half of the DAO allocation is placed in permanent staking, while the other half remains available for proposals and ecosystem spending. This structure gives the DAO both long-term alignment and usable capital. The permanently staked part supports the long-term staking and governance model, while the available part can be used to fund approved proposals. ### Proposal creation Community members who stake SLD can create proposals. A proposal can request funding for any purpose, as long as it follows the DAO rules and receives enough support from stakers. To create a proposal, the proposer must stake enough SLD to represent at least **10% of the proposal’s dollar value staked**. This means that larger proposals require the proposer to have more value staked. The goal is to make proposal creation open, but still require meaningful alignment from the person submitting the request. ### Proposal funding A proposal can request funding in **ALGO** or **SLD**. If the proposal requests SLD, the funds come from the non-staked part of the DAO allocation. This keeps the permanently staked DAO allocation untouched, while still giving the community an active pool for approved initiatives. Examples of possible proposals may include privacy-focused projects, Algorand ecosystem initiatives, community programs, additional staking rewards, or SLD buyback and burn actions. These are only examples. The final direction depends on what the staking community proposes and approves. ### Discussion period Every proposal enters a **one-week discussion period** before voting begins. During this period, stakers can review the proposal, ask questions, challenge assumptions, suggest changes, and decide whether they want to participate in the vote. To move from discussion to voting, at least **30% of stakers outside the DAO allocation** must declare that they want to vote on the proposal. This declaration step is important because it prevents proposals from moving forward without enough interest from the active staking community. A strong proposal should clearly explain what it requests, why it matters, how much funding is needed, who is responsible for execution, and what the expected outcome is. ### Voting period After the discussion period, an eligible proposal enters a **one-week voting period**. During this time, declared SLD stakers vote on whether the proposal should be approved. For a proposal to pass, at least **51% of voting power from participating voters must vote in favor**. If a staker did not declare participation during the discussion period and does not vote, they are treated as abstaining. If a staker declared participation but does not vote before the deadline, they are counted as voting against the proposal. This structure encourages voters to declare participation only when they actually intend to vote, while still allowing inactive or undecided stakers to abstain. ### Voting power Voting power in the Sealed DAO is based on two factors: the amount of SLD staked and the user’s **POWER** multiplier. A user who stakes more SLD has more base voting power. However, long-term staking is also rewarded through the POWER system. This means governance power is not based only on how many tokens someone holds, but also on how long they keep them staked. This design encourages long-term alignment instead of short-term voting behavior. ### POWER multiplier POWER is a staking multiplier used for both staking rewards and DAO voting power. When a user starts staking SLD, their POWER multiplier begins at **1x**. Each day, the multiplier increases by **0.01x**, until it reaches a maximum of **4x**. This means that users who keep their SLD staked for longer gradually gain more influence and higher staking reward weight. The longer a user remains committed, the stronger their POWER becomes. However, POWER resets if the user unstakes any amount of SLD. Even removing a small part of the stake resets the multiplier. This creates a strong incentive to remain staked continuously. ### Project veto rights The Sealed project keeps the right to veto proposals. This is a safety mechanism. DAO governance can support ecosystem growth, but it should not be able to harm the protocol, weaken privacy, misuse treasury resources, or force decisions that create legal, security, or operational risks. The Sealed project can also submit its own proposals. This allows the core team to request DAO support for initiatives that align with the project roadmap, ecosystem expansion, or strategic needs. ### DAO summary The Sealed DAO controls 20% of the total SLD supply, split between permanent staking and an active proposal pool. SLD stakers can create proposals, discuss them for one week, and move them to voting only if at least 30% of non-DAO stakers declare participation. To submit a proposal, a staker must hold at least 10% of the proposal’s dollar value in staked SLD. Voting lasts one week, and a proposal passes if at least 51% of participating voting power supports it. Voting power depends on both the amount of SLD staked and the POWER multiplier, which grows from 1x to 4x over time and resets when any SLD is unstaked. This model is designed to reward long-term commitment, give the community influence over DAO resources, and keep proposal creation open while still requiring alignment and active participation from stakers. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sealed.channel/sld-token/dao.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.