# 3. Nutbox Governance
Our governance experience on Peanut and other blockchain practices have been proved that a pure decentralized governance faces some problems：the governance participation is always low and staking behavior is not optimal. Nutbox build a decentralized governance engine (DAO.fundation) and a representative governance engine (DAO.committee) to balance the pro and con.
# 3.1 DAO.Fundation
DAO.Fundation is controled by NP holders, which is also the final authority source of Nutbox. DAO.Fundation has the ownership of DAO.fund, can pay the various costs and expenses of Nutbox ecosystem development with the NUTs in DAO.fund through the Nutbox Proposal System.
# 3.2 DAO.committee
Since DAO.Foudation is a decentralized governance, which means efficieny is always questioned. In order to adapt to the changing environment and support community contributors better, daily affairs will be handled by DAO.committee. DAO.committee member are voted by NUT POWER holders. Once the members of the committee are elected, they serve a one-year term and are subject to community supervision.
DAO.committee will hand over all rights and interests to DAO.Fundation at the right time to realize Nutbox's complete decentralized governance. But before that, DAO.committee makes decisions on behalf of the community and controls the use of Committee.Fund, but significant decisions still need to be submitted to DAO.Fundation for processing.
# 3.3 Nutbox Proposal System
Nutbox started community governance in a decentralized manner through the Peanut Proposal System from the Peanut phase. Nutbox will inherit this tested solution. This allows NUT POWER holders to control the agreement, and the agreement and financial management can only be updated with the approval of the NUT POWER holder.
# 3.3.1 Process
The governance process starts with the submission of a proposal, and the community can discuss the proposal. Any individual or organization that meets the requirements can submit a proposal. Holders of NUT POWER can vote on the proposal after full discussion.
If the proposal snapshot is passed and can be directly executed through the standard contract, the approved action will be executed immedietely. If code deployment is required, after the code is developed, it will be deployed after auditing and re-governance voting.
# 3.3.2 Prerequisite
Before submiting the proposal, the user must stake 1000 NUT to the DAO.committee, and the 1000 NUT will be refunded after the proposal passes the preliminary review. The transfer amount will not be refunded if it does not meet the basic requirements.
VOTING POWER can be set according to the situation:
- Each pledged NUT is equivalent to 1 VOTING POWER;
- Each NUT in the NUT-ETH pool or NUT-DOT pool is equivalent to 2 VOTING POWER;
- Indicators determined by other communities .
Threshold of proposal approval: (consent vote minus veto vote)/(all candidate vote)>30%.