Any potential governance change should start as a Request for Comment (RFC) before a protocol improvement proposal is raised.
Creating a Nexus Mutual Protocol Improvement Proposal (NMPIP) is the second step in the protocol governance process.
Any member can start RFC discussions, create, post, and vote on NMPIPs.
Step 1: Posting a Request for Comment (RFC)
Every governance discussion should start as a Request for Comment (RFC) to get feedback from the community and, if applicable, the engineering team.
RFCs should be posted for at least 12 days before they are raised as formal NMPIPs. Of course, they can be posted for longer periods, but a minimum is necessary to ensure members have adequate time to give feedback ahead of a formal proposal. This feedback can be used to revise your proposal ahead of a NMPIP posting.
The format for RFCs is an abbreviated version of the NMPIP format:
Title. [RFC]: [Concise title for proposal]. For example: [RFC]: Invest some of the Mutuals fund's in LIDO stETH
Summary. Short summary, no more than 250 words, of your proposal.
Rationale. Explain why your proposal is important: what problem does it solve?
Specification. The what and how of your proposal. What is the purpose of your proposal and how does it solve the stated problem, benefit members, or improve the protocol?
Step 2: Moving to a Formal NMPIP
When you are ready to write an NMPIP, you should include the following information:
Title. NMPIP: [Concise title for proposal]. For example: NMPIP: Invest some of the Mutual's funds in LIDO stETH
Summary. Short summary, no more than 250 words, of your proposal.
Rationale. Explain why your proposal is important: what problem does it solve?
Specification. The what and how of your proposal. What is the purpose of your proposal and how does it solve the stated problem, benefit members, or improve the protocol?
Technical requirements. Outline any development resources and requirements necessary for your proposal to be implemented.
Proposal status. Depending on what stage your proposal is in, you must include:
- Stage. One of the following should be added: 1) Open for Comment, 2) Closed, 3) Open for voting, 4) Accepted, or 5) Rejected.
- If you choose to conduct a signaling vote using Snapshot, please update status to Signaling Vote and link to that vote. Signaling votes can be used but are not required.
- If it is in the open for vote stage, add the link to the on-chain proposal
Other sections may be added, but the above should be outlined in any NMPIP proposal.
Review and Discussion Period
An NMPIP should be open for review and comment for at least 14 days before requesting to have your proposal whitelisted by the Advisory Board.
NMPPs can be in the open for comment stage for longer periods of time, but there is a minimum to ensure review, feedback, and discussion can occur before the proposal is reviewed by the Advisory Board.
Step 3: Whitelisting Proposal On Chain
Members who post an NMPIP that has been active for at least 14 days can request the Advisory Board to review and whitelist a proposal on-chain.
The Advisory Board will categorize the NMPIP, assign a proposal number, and set the total NXM token rewards to be shared among those participating in the vote.
Note: this step does not apply to critical decision votes.
Step 4: On-Chain Vote
Once a vote has been whitelisted and transitioned on-chain, members can vote on the proposal. On-chain votes are open for three (3) days before they close and the results are finalized.
Step 5: Implementation
If the majority of members vote to approve, the proposal will pass and will be implemented after a 24-hour cool-down period.
NMPIP Template
You can fine the NMPIP template below:
- Title
- Summary
- Rationale
- Specification
- Technical requirements
- Proposal status