# Garbage Dump DAO

The Garbage Dump DAO is a core component of the XEN Garbage Dump project and is responsible for governing the entire system. DAO, which stands for Decentralized Autonomous Organization, is a novel organizational form where decision-making authority is shared among all participants. In the XEN Garbage Dump project, the Garbage Dump DAO plays a crucial role.

### Responsibilities of the DAO

The primary responsibilities of the Garbage Dump DAO include, but are not limited to：

* Deciding which new garbage coins should be accepted into the Garbage Dump.
* Formulating and modifying the project's governance rules.
* Determining the major development directions of the project.
* Adjusting the project's reward mechanism to adapt to market changes.
* Making decisions on risk management strategies for the project.
* Deciding and resolving any potential issues or challenges the project may encounter.

All these decisions are made through voting by members of the DAO.

### DAO Members

The members of the Garbage Dump DAO are all holders of $GDXEN tokens. $GDXEN is the governance token of the Garbage Dump DAO, and only those who hold $GDXEN can participate in the decision-making process of the DAO. $GDXEN token holders can vote to determine the future development of the Garbage Dump and can also propose new proposals.

The allocation mechanism of $GDXEN tokens is fair, as all $GDXEN tokens are obtained through burning XEN or garbage coins. This design ensures that all $GDXEN token holders have contributed to the Garbage Dump project, which helps to ensure that the DAO's decisions truly reflect the will of the project's community.

### DAO Operation Mechanism

The operation mechanism of the Garbage Dump DAO is open and transparent. Anyone can view all the decision records and voting results of the DAO. This transparency helps to enhance the credibility of the DAO and enables project participants to better understand and engage in the governance process.

The decisions of the Garbage Dump DAO are made through voting. Each $GDXEN token represents one vote, and the outcome of each proposal depends on the voting results. To pass a proposal, it requires more than half of the votes in favor. During the voting period, $GDXEN token holders can change their votes at any time until the voting ends. This flexible voting mechanism allows the DAO's decisions to better reflect the will of the community.

The Garbage Dump DAO is the core of the XEN Garbage Dump project, with the goal of establishing a fair, transparent, and sustainable garbage dump ecosystem, where all participants can derive value from the project.

### **DAO Treasury**&#x20;

The DAO Treasury is a core component of our project, serving as our financial management and decision-making mechanism.

We will allocate 30% of the recycle fee to repurchase Xen and lock it in the DAO Treasury. This Xen will serve as our project's reserve funds, used for activities, community governance, incentive mechanisms, and more. This will increase the vibrancy and engagement of our project, thereby enhancing its value and impact.

The management and use of the DAO Treasury will be determined through voting by our project's community members. This ensures transparency and democratic self-governance for our project, giving every GDXEN holder a voice and a sense of participation. This is the original intention and goal behind our design of the DAO Treasury. I hope you can understand and support our decision.
