> For the complete documentation index, see [llms.txt](https://docs.definder.global/df-platform-white-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.definder.global/df-platform-white-paper/how-it-works/system-components/dao.md). # DAO Definder DAO's structure provides an innovative approach to governance in real estate investment. It incentivizes active participation through a tiered voting system, enhancing the influence of dedicated community members. The integration of a gamified voting mechanism with a robust project vetting process by DFIND ensures that investments are not only democratically decided but also align with compliance and due diligence standards. This approach fosters a balanced combination of community engagement and expert oversight in the decision-making process. ### Governance Structure **- Hybrid Model:** Definder DAO combines hierarchical elements with participatory incentives. The more active a user is in the system, especially in voting, the more influential their vote becomes. **- Initial Voting Power:** Upon registration, each user is allocated a default voting power worth $1000. **- Additional Funds Contribution:** Users can increase their voting power by adding funds to their wallet within the system. For instance, adding $100 to the wallet increases the vote value to $1100. ### Voting process {% embed url="" %} The voting mechanism is designed to balance fairness and influence. All users have a base vote value, but active participants gain higher voting power. **Voting Power Calculation** Your Voting Power is defined by this formula: ``` Voting Power = (Base Vote + Wallet Amount) x Tier Multiplier ``` Where: ***Base Vote:*** Fixed at $1000 for all users ***Wallet Amount:*** The dollar amount of DFIND tokens held in your platform wallet ***Tier Multiplier:*** Starts at 1x and increases for higher tiers For example: * User A has $2,000 DFIND in their wallet * They are at Tier 1 level * So their Voting Power is: ``` ($1000 base vote + $2000 wallet) * 1 (Tier 1 multiplier) = $3000 ``` **Tier Multipliers** Higher tiers amplified voting power and benefits via the multiplier: * Tier 1 - Base : 1x * Tier 2 - Engaged : 1.5x * Tier 3 - Active: 2.5x * Tier 4 - Leader: 5x **Definder's hybrid governance couples community participation with expert guidance for informed decisions. Projects are vetted before moving for communal vote, balancing engagement with oversight.** ### Voting System **- Active Voting Periods:** The DAO has designated periods during which users can vote on specific projects or decisions. **- Project Voting:** Users primarily vote on real estate projects that the DAO might invest in. **- DFIND Network:** The DFIND network presents the terms and the projects for the DAO to review and to vote. ### Investment Mechanism \- Combination of Lending Pools and Direct Investments: Investments from the DAO are channeled either through lending pools or directly from users, focusing on selected real estate projects.