7.3. Proposal Lifecycle

There are two types of proposals:

• Funding Proposals: Cover routine decisions such as network policy changes and minor feature additions. Initially, funding is capped at $100k per proposal, subject to change based on network demand and future governance decisions

• Critical Proposals: Concerns major network changes, such as protocol upgrades or governance structure amendments, and require higher thresholds to pass.

Datagram’s governance system allows both Full Core operators and $DGRAM token holders to submit proposals. However, to maintain proposal quality and prevent spam, a burn mechanism is in place. Before a proposal can advance to a vote, Proposers must commit a portion of their tokens to be burnt, and proposals require support from 250 Full Cores, who must also contribute a small burn to be burnt.

The table below outlines the requirements for both types of Proposer

Proposal Type	Eligibility	Burn Requirement	Support Requirement
Full Core Operators	Any Full Core operator	$5,000 worth of $DGRAM	250 Full Cores must support (each burning $50
Token Holders (Non-Core)	Any $DGRAM token holder	$20,000 worth of $DGRAM	250 Full Cores must support (each burning $50

Once a vote is open, it is live for a set period of time (e.g. 7 days), and each Full Core can cast a vote via a governance platform, with votes shown publicly in real-time. A proposal passes if the required percentage of Full Cores vote in favor, meaning that at least 25% of Full Cores vote (quorum rule) and at least 51% vote in favor of it (majority rule). These thresholds may also be modified in the future, based on governance voting.

A Full Core must have been online for at least 80% of the voting period to cast a vote. This prevents actors from purchasing votes solely to influence outcomes.