Yuru DAO Governance Policy

Last Updated: April 26, 2026

This Yuru DAO Governance Policy (hereinafter referred to as “this Policy”) outlines the framework, rules, and procedures for decentralized decision-making within the YuruFun ecosystem (hereinafter “the Ecosystem”). The Yuru DAO (Decentralized Autonomous Organization) empowers community members to actively participate in shaping the future of the Platform, managing shared resources, and resolving critical issues such as IP defaults.

By participating in Yuru DAO governance, holding governance tokens, or submitting proposals, you agree to abide by this Policy and all other applicable YuruFun terms and guidelines.

1. The Role of Yuru DAO

The Yuru DAO serves as the decentralized governance body for the Ecosystem. Its primary responsibilities include:

• Protocol Upgrades: Voting on proposed changes to smart contracts, fee structures, and core platform mechanics.
• Treasury Management: Allocating funds from the Community Treasury to support ecosystem growth, grants, and initiatives.
• IP Default Resolution: Managing and monetizing Intellectual Property (IP) rights that have been transferred to the DAO due to a Creator’s default on Yuru.credit IP Bond NFTs.
• Community Standards: Proposing and voting on updates to Community Guidelines and moderation policies.

2. Governance Tokens and Voting Rights

2.1. Token Utility

Yuru DAO proposals use the official YuruFun governance token (hereinafter “$YURU”), and only locked or staked $YURU included in the proposal snapshot counts toward voting power. Micro DAO and CTO proposals are coin-scoped: voting power comes from the relevant Character Token mint snapshot, not from generic $YURU holdings.

2.2. Voting Power Calculation

Voting power is calculated from the eligible token snapshot for the specific proposal. Yuru DAO snapshots count locked or staked $YURU. Micro DAO and CTO snapshots count balances of the target coin mint at snapshot time, subject to the proof, escrow, and eligibility rules enforced by the platform contracts.

2.3. Delegation

Eligible voters who cannot actively participate in governance may delegate their voting power to other trusted community members (Delegates), where delegation is supported for the relevant proposal type. Delegation can be revoked or reassigned at any time.

3. The Proposal Process

The governance process consists of several stages to ensure proposals are well-considered and community-vetted before a formal vote.

3.1. Phase 1: Ideation and Discussion (Forum)

• Any community member can initiate a discussion on the official YuruFun Governance Forum.
• Ideas should be presented clearly, outlining the problem, proposed solution, and potential impact.
• This phase allows for community feedback, refinement, and gauging initial sentiment.

3.2. Phase 2: Formal Proposal (YIP - Yuru Improvement Proposal)

• If an idea gains sufficient traction, it can be formalized into a Yuru Improvement Proposal (YIP).
• A YIP must follow a standardized template, including an executive summary, detailed specification, technical implementation plan (if applicable), and security considerations.
• Submitting a Yuru DAO YIP may require a minimum threshold of locked or staked $YURU to prevent spam. Coin-scoped Micro DAO and CTO proposal eligibility is based on the relevant Character Token mint and category-specific rules.

3.3. Phase 3: Snapshot Voting (Off-chain)

• Before moving to a binding on-chain vote, a YIP may undergo an off-chain “temperature check” using a platform like Snapshot.
• This step confirms broad community support without incurring gas fees.

3.4. Phase 4: On-chain Voting

• Proposals that pass any required temperature check are submitted for a formal, binding on-chain vote via the YuruFun governance smart contracts.
• Voting Period: A predefined duration (e.g., 3 to 7 days) during which token holders can cast their votes (For or Against).
• Quorum: A minimum percentage of the total eligible voting power must participate for the vote to be valid.
• Approval Threshold: A proposal must receive support strictly above the displayed threshold to pass, such as >50% (50%超) for simple-majority categories or >66% (66%超) for supermajority categories. Exact threshold ties do not pass.

3.5. Phase 5: Execution

• If a proposal passes, the changes are executed.
• For smart contract upgrades or treasury transfers, execution is typically handled automatically by a Timelock contract after a predefined delay (e.g., 48 hours) to allow users to react to the changes.

4. IP Default Management by the DAO

A unique and critical function of the Yuru DAO is managing IP rights transferred due to a Creator’s default on Yuru.credit.

4.1. Transfer of Rights

Upon a confirmed Default Event (as defined in the Yuru.credit IP Bond Terms), the on-chain representation of the IP’s commercial rights is automatically transferred to the Yuru DAO.

4.2. DAO Monetization Strategy

The DAO will form a specialized committee or use the standard YIP process to determine the best strategy to monetize the defaulted IP and recover funds for the affected Investors. Strategies may include:

• Auction: Selling the IP rights to the highest bidder.
• Licensing: Granting licenses to third-party developers or creators to use the IP in exchange for royalties.
• Community Development: Funding community-led projects (e.g., games, merchandise) using the IP, with profits directed to the affected Investors.

4.3. Priority of Repayment

Any revenue generated by the DAO from a defaulted IP will be prioritized to repay the principal and accrued interest owed to the original IP Bond NFT Investors. Once Investors are made whole, any surplus may be directed to the Community Treasury.

5. Code of Conduct in Governance

Participants in Yuru DAO governance are expected to act in the best interests of the Ecosystem.

• No Vote Buying/Selling: Exchanging tokens or other compensation for votes is strictly prohibited.
• Conflict of Interest: Delegates and proposal authors must disclose any significant conflicts of interest.
• Constructive Debate: Discussions should remain respectful and focused on the merits of the proposal, adhering to the Community Guidelines.

6. Emergency Powers

In the event of a critical security vulnerability or an existential threat to the Ecosystem, a designated multi-signature wallet (Multisig) composed of trusted community members and core contributors may possess emergency powers to pause contracts or execute rapid fixes. The use of emergency powers must be transparently communicated to the DAO and followed by a post-mortem report and a formal governance vote to ratify or revert the actions taken.

7. Amendments to this Policy

Changes to this Governance Policy must be proposed and approved through the standard YIP process outlined in Section 3.

8. Contact Us

For questions regarding Yuru DAO governance, please contact legal@yuru.fun or participate in the official Governance Forum.