# DAO & voting

onocoy’s **DAO (Decentralized Autonomous Organization)** and voting system are designed to ensure inclusive, transparent, and decentralized governance over time. Here's how it works:

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### 🏛️ **DAO Structure**

onocoy is legally structured as a **non-profit Swiss association**, blending:

* **Legal governance** (off-chain, via Swiss association law)
* With **decentralized governance** (on-chain, via token-based voting)

This hybrid model lets them operate legally while still evolving toward a fully decentralized system.

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### 🗳️ **Voting System Overview**

#### ✅ **Token-Based Governance**

* **ONO token holders** participate in governance
* Token holders **delegate their voting power** anonymously
* Delegates must have **known identities**, ensuring transparency

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### 🔢 **Voting Mechanics: Square-Root Voting**

This is a **modified quadratic voting** system:

| Token Power | Voting Weight |
| ----------- | ------------- |
| 1 ONO       | 1 vote        |
| 4 ONO       | 2 votes       |
| 9 ONO       | 3 votes       |
| ...         | ...           |

🔒 This **limits power concentration**, making it harder for whales to dominate decisions.

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### 🧑‍⚖️ **Delegation Process**

!\[Governance Flow]\(visual not shown, but here's the flow):

1. **Any ONO token holder** can **anonymously delegate** their vote to a **known delegate**
2. Delegates **vote on proposals** using the **square-root** of the delegated token power
3. **Anyone** can submit proposals (referenda or initiatives)

🧠 Delegation encourages participation without requiring everyone to vote directly.

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### 📌 **Governance Goals**

* **Inclusive participation** (even small token holders)
* **Decentralized control** (progressively)
* **Transparency** (through known delegates)
* **Resilience** (mitigate Sybil and whale attacks)

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### 📚 **Governance in Action**

* Delegates vote on key proposals: protocol updates, reward adjustments, ecosystem decisions, etc.
* Token holders govern the association itself, including electing the **governance committee**
* Governance can evolve: future mechanisms like **Borda count or approval voting** may be used

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### Summary

| Feature                | Onocoy DAO Governance                       |
| ---------------------- | ------------------------------------------- |
| Legal Entity           | Swiss non-profit association                |
| Governance Token       | ONO                                         |
| Voting Power Mechanism | Square-root voting (limits centralization)  |
| Delegation             | Anonymous → Known delegates                 |
| Proposal Creation      | Open to all token holders                   |
| Voting System Goal     | Progressive decentralization + transparency |