Proposals

Proposals can be created for DAOs to decide what actions they should take. Today the only action is a agreeing to a memo ( a short piece of onchain text).

Creating Proposals

When you have prepared the liquidity and description for your proposal you are ready to create your first proposal.

The final two steps are:

1. Clicking the review button to submit your proposal to the friendly Govex AI reviewer. (To proceed to proposal creation, it must score your proposal as 6+ out of 10 for clarity)

2. You also have to set amount the liquidity you want to put in the AMMs. Take care to set the price close to the current spot price for your coin. This proposal liquidity will be locked for the duration of the proposal and if the price moves significantly you may get out a different ratio of coins to what you put in. This is similar to the standard V2 Uniswap AMM.

Trading Proposals

Govex proposals use conditional coins not spot coins. See the example below:

Here we have an example proposal to approve an ambitious pay package for the CEO. There are two outcomes: Accept and Reject. Traders can deposit 1 spot coin and split that single coin into two, giving them 1 conditional‑accept coin and a 1 conditional‑reject coin. If they are bullish on the pay package, they can buy conditional‑accept DAO coin in exchange for their conditional accept USDC. This increases the price of the Accept market.

At the end of the trading period, the market with the highest average price is the winning market. All coins in the winning market can be redeemed; one conditional‑accept coin can be redeemed for one spot coin. Unlike regular prediction markets this is not zero-sum. Good decisions create new value in the world. Govex decision markets incentivize good decisions to be proposed and actioned.