Introducing the Prisma DAO

While developing Prisma, one of the largest goals was to create a decentralized and trustless environment that would allow for community-led growth, development, and self sustainability.

Neutrality and trust minimizations are among the tenets on which we have built the dedicated governance system for Prisma. Starting today, all changes to the Prisma Protocol originate from PRISMA token holders. The governance framework is limited to changing economic parameters and voting for collateral onboarding to maintain and protect the immutable and autonomous qualities of the Prisma Protocol. The creation of the Prisma DAO is the optimal approach for Prisma, allowing vePRISMA holders to serve as responsible stewards of the protocol.

A DAO open to all

Possessing PRISMA and participating in Prisma governance are not the same; Prisma uses a veToken model that gives voting authority to vote-escrowed PRISMA holders (vePRISMA).

DAO members gain voting power by locking their PRISMA, the longer these tokens are locked, the higher the voting power. The more voting power a user holds, the greater the decision-making power the voter receives.

vePRISMA will be used across all future DAO votes, giving every token holder a say in the direction and growth of the PRISMA DAO. The DAO can formally vote on the following:

• Directing PRISMA emissions

• Modifying fees

• Adding or removing collateral

• Pausing or unpausing protocol functionality

• Transfer protocol fees

• Adjusting the quorum on admin votes

We’re excited to see how Prisma evolves and invite anyone who would like to get involved to participate in governance and help improve the protocol.

Voting interface

Addresses that hold PRISMA can start locking their PRISMA on app.prismafinance.com . The longer the locking period, the more voting weight you will earn. Users who have locked their PRISMA can submit votes to determine how PRISMA emissions are distributed within the protocol.

To start discussing and creating governance proposals visit: gov.prismafinance.com . We’ve created a framework allowing anyone to create a Prisma governance proposal.

What’s Next

With the launch of the PRISMA token scheduled for November 2nd, the introduction of the Prisma DAO marks a significant milestone in the evolution of our decentralized ecosystem. The creation of this DAO not only reflects our commitment to community-led growth and trust minimization but also opens the doors to a more inclusive and democratic decision-making process. As we move forward, we eagerly anticipate the dynamic changes and improvements that will be driven by our vePRISMA holders, who will play a pivotal role in shaping the future of the PRISMA DAO. With an open invitation for all to engage in governance, we're excited to witness the collective efforts that will propel Prisma to new heights.