DAO

Haust’s DAO employs an advanced governance framework designed to empower its community and guide the evolution of the ecosystem. This governance structure is built on two foundational components: vote-escrowed tokens (ve-tokens) and quadratic voting.

veHAUST: Lock-Based Influence Mechanism

Holders of HAUST tokens can lock their tokens in exchange for ve-tokens for a specified duration, after which one can get tokens back. The allocation of ve-tokens is proportional to both the quantity of HAUST tokens locked and the length of the lock period. This mechanism ensures that participants with a higher commitment (a larger amount of tokens)—both in terms of capital (more locked tokens) and time (longer lock periods)—accrue greater governance influence via increased ve-tokens.

Quadratic Voting: Equitable Power Distribution

Holders of veHAUST tokens are granted the right to engage in pivotal governance votes that steer the protocol's development path. These votes cover key decisions, including but not limited to:

• The selection of new donor networks for integration with the Haust Network.

• The definition of risk and return parameters for Haustoria contracts across various networks.

• The allocation of grants from the Haust ecosystem fund.

• Adjustments to tokenomics parameters and incentive structures.

Haust Network employs a quadratic voting mechanism for these decisions. In this model, the influence of each vote scales with the square root of the ve-tokens committed, rather than linearly. This design promotes a fairer distribution of voting power, ensuring that stakeholders with smaller holdings still possess meaningful influence, while preventing those with larger stakes from exerting disproportionate control. Quadratic voting mitigates the risk of centralization of power, fostering a governance process that is more balanced, inclusive, and representative of the broader community's interests.