# DAO

### **Implementation**

The DAO is divided in 2 parts : 

1. The DAO smart contract, which is basically defining a voting mechanism, and storing the registry of all proposal votes on-chain
2. The proposal library contracts, which create the structures for our different proposals 

### On-chain Governance

Nyx has a decentralized on-chain governance that involves all Nyxers in the decision-making process. This governance is based on a DAO (Decentralized Autonomous Organization) which will have a dedicated smart contracts distinct from the NFT smart contract.

A decision making process has been defined for governance through multiple step : Suggestion, Proposals, Vote, Execution.

The DAO has [dapp](https://nyx-dao.gitbook.io/nyx-dao/dapp "mention") in which the Nyxer will be able to access after connecting his wallet proving the possession of a Nyx NFT.

### Architecture

Based on a decentralized power structure, a DAO benefits from a structure preventing any risk of hijack, attack, infiltration or manipulation by a third party. 

Owned by its members, a DAO is not only designed to be tamper-proof, but to also allow its contributors to take part in the decision-making process, retributing them in either cryptocurrencies or in shares, proportionally to their contribution. 

**Members of a DAO can both access all information and participate in the decision making process.**

Our Vault will be funded through the money collected by the NFTs’ acquisition. Decisions taken by Nyxers will be filtered and ran through the DAO. 

Several [representatives](https://nyx-dao.gitbook.io/nyx-dao/dao/representatives "mention") will be mandated by the DAO during the decision-making process to ensure the quality of investments, secure the transactions and maximize rentability.

The revenues generated by the different investments will be submitted to a vote in order to determine passive income redistributed through the DAO to the NFT owner.

**The passive income will have to be claim by each nyxer – in ETH – with the wallet detaining the NFTs.**

![](https://718673042-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FddoWnhgsCayzRKoKfgV5%2Fuploads%2Ft4YsZlWtFnoOqDmB4Jlh%2FNYX_DAO.png?alt=media\&token=f20d2c5d-5f9d-4d55-a09f-80f9406fec84)

Nyx DAO will **use a global technology provider** in order **to securize Nyx's Vault, blockchain transactions, and manage digital assets securely :** we use Gnosis Safe mainly because it is open source and therefore usable as a decentralized organization.