# DAO

The initial DAO formed will oversee the governance of YOCx tokens. The DAO will consist of two distinct roles:

### Council:&#x20;

Council members are authorized to create and vote on proposals. Only Council members have the ability to initiate proposals. If the majority of the Council approves or rejects a proposal, that decision will be implemented.

The council will consist of the top 5 YOCx token holders on each chain, determined based on the "Sum of tokens held per day" criterion. Here's an example to illustrate how this calculation works:

User's token holdings per day:

Day 1: 10 Tokens held

Day 2: 11 Tokens held

Day 3: 12 Tokens held

To calculate the "Sum of tokens held per day," we add up the token holdings for each day:

Day 1: 10

Day 2: 10 + 11 = 21

Day 3: 10 + 11 + 12 = 33

In this example, the user's "Sum of tokens held per day" at the end of day 3 is 33. The top 5 token holders with the highest "Sum of tokens held per day" on each chain will be selected to form the council.

### Community:&#x20;

Community members have the right to vote on proposals. Community in this case is formed by all YOCx holders. If the majority of the Community approves or rejects a proposal, that decision will be upheld. In most cases, the Council will respect the Community's decision and abstain from voting.

This governance structure ensures that both the Council and the Community have a say in decision-making processes, with the Community's consensus being given significant weight in most cases.


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