# Governance Overview

### Introduction

Treem DAO operates as a decentralized autonomous organization where TREEM token holders can participate in governance decisions. The governance system is built on Ethereum using OpenZeppelin's Governor contracts and includes an enhanced staking mechanism for increased participation and security.

### Core Concepts

#### TREEM Governance Token

* **Symbol**: TREEM
* **Total Supply**: 1,000,000,000 TREEM
* **Standard**: ERC-20 with ERC-20Votes extension
* **Network**: Ethereum 

#### Token Distribution

| Allocation          | Percentage | Amount            | Purpose                    |
| ------------------- | ---------- | ----------------- | -------------------------- |
| Foundation Treasury | 40%        | 400,000,000 TREEM | Operations and development |
| Community Grants    | 30%        | 300,000,000 TREEM | Community funding          |
| Reserve Future Use  | 15%        | 150,000,000 TREEM | Strategic reserves         |
| Founders and Team   | 15%        | 150,000,000 TREEM | Team allocation            |

#### Governance Parameters

* **Proposal Threshold**: 0.5% of total supply (5,000,000 TREEM)
* **Voting Period**: 7 days (50,400 blocks)
* **Voting Delay**: 1 day (7,200 blocks)
* **Quorum**: 4% of total supply
* **Execution Delay**: 2 days (timelock)

### Staking System

#### Staking Tiers

The governance system includes a tiered staking mechanism that determines voting rights and proposal creation privileges:

**6-Month Staking Tier**

* **Lock Period**: 180 days
* **Benefits**:
  * Vote on general proposals
  * Vote on grant proposals
  * Earn voting rewards
* **Requirements**: Minimum stake amount (configurable)

**12-Month Staking Tier**

* **Lock Period**: 365 days
* **Benefits**:
  * All 6-month tier benefits
  * Create grant proposals
  * Higher voting reward multipliers
* **Requirements**: Minimum stake amount (configurable)

#### Voting Power

Voting power is determined by:

1. **Staked Token Amount**: Direct correlation to staked TREEM tokens
2. **Delegation**: Users can delegate their voting power to other addresses
3. **Snapshot**: Voting power is calculated at proposal creation time

### Proposal Types

#### General Proposals

* **Purpose**: Protocol changes, parameter updates, general governance decisions
* **Creation Requirements**: All stakers (6+ months) 
* **Voting Requirements**: All stakers (6+ months)
* **Examples**: Protocol upgrades, treasury allocations, governance parameter changes

#### Grant Proposals

* **Purpose**: Funding requests for community projects
* **Creation Requirements**: 12-month stakers only
* **Voting Requirements**: All stakers (6+ months)
* **Features**: Specified grant amount, recipient, and funding criteria

### Voting Rewards

Active participation in governance is incentivized through a reward system:

* **Base Reward**: 100 TREEM tokens per vote participation
* **Source**: Treasury allocation
* **Distribution**: Manual claim after voting
* **Reset**: Vote count resets after claiming rewards
* **Annual Cap**: Configurable per user to prevent abuse (50,000 TREEM tokens as of 01/05/2025)

### Smart Contract Architecture

The governance system consists of several interconnected smart contracts:

1. **TreemGovernanceToken**: ERC-20 token with voting capabilities
2. **TreemGovernor**: Main governance contract for proposals and voting
3. **TreemStaking**: Staking contract with lock periods and tiers
4. **TimelockController**: Execution delay for approved proposals
5. **TreemVoteRewardTracker:** – manages per‑vote rewards and tracks participation.

### Security Features

* **Timelock Protection**: 2-day delay for proposal execution
* **Quorum Requirements**: Minimum participation for proposal validity
* **Snapshot Voting**: Prevents vote manipulation through token transfers
* **Access Controls**: Role-based permissions for administrative functions
* **Reentrancy Protection**: Secure against common smart contract vulnerabilities

### Getting Started

1. **Acquire TREEM Tokens**: Purchase through the DAO's token sale or exchanges
2. **Connect Wallet**: Use MetaMask or compatible Ethereum wallet
3. **Stake Tokens**: Choose 6-month or 12-month staking period
4. **Participate**: Vote on proposals and earn rewards
5. **Create Proposals**: Submit your own proposals (12-month stakers only)

### Next Steps

* Read the User Guide for step-by-step instructions
* Learn about Staking to maximize your participation
* Explore Proposals to understand the proposal lifecycle