TEN Improvement Proposals (TIP)
A TEN Improvement Proposal (TIP) is an essential component of the governance of TEN because it is how participants in the TEN community can have an active role in the evolution of TEN.
TIPs are submitted by anyone holding TEN tokens and who are therefore members of the TEN Governance, or DAO. TIPs are used to modify procedures, install or modify software, update permission whitelists where they exist. Also TIPs include requests for funds or grants and provide guidelines or information to the community.
TIP Structure
The following sections should be completed when creating a TIP to make them transparent, structured and easy to understand. The structure of a TIP follows the SMARTKIT approach:
- Summary: A brief summary of the TIP.
- Motivation: Justification for implementing the TIP.
- Alignment: Explanation of how the TIP aligns with TEN's mission and values.
- Risks: description of any risks of proceeding with the TIP.
- Terms: Definitions of unique, new, or industry-specific terms (optional).
- Key Details: Detailed breakdown of platforms, technologies, and design decisions. Includes alternate designs and related work.
- Implementation: Steps to implement the TIP, including assumptions, resources, type of expertise required and costs breakdown. Legal documentation should be included if relevant.
- Timing: Start date, milestones, and completion dates.
Lifecycle of a TIP
A TIP will go through several steps to help make sure as many members of the TEN community as possible can engage with and review the TIP. Progressing past each step represents levelling-up in the process. Timeframes for each step help encourage reviews to be done in a timely manner.
| Level | Description | Timeframe |
|---|---|---|
| 8 (End) | ⭐ TIP Implementation | Minutes |
| 7 | ⬆️ Ethereum Finalization Period | 3 days |
| 6 | ⬆️ TEN to Ethereum Message | 0.5 day |
| 5 | ⬆️ Reaction Period | 3 days |
| 4 | ⬆️ Acknowledge and Confirm | 3 days |
| 3 | ⬆️ On-chain Vote | 14 days |
| 2 | ⬆️ On-chain Voting Preparation | 3 days |
| 🛑 | Gate | |
| 1 (Start) | ⬆️ Interest Gathering, Off-chain Vote | 14 days |
Level 1: Interest Gathering, Off-chain Vote
This first level is a preliminary filter to remove TIPs with low levels of interest or TIPs which will break the rules of the TEN governance system, e.g. are unlawful.
- Submission of TIP on Snapshot with a link to the TEN governance forum. Only holders of TEN tokens can submit a TIP
- Discussion on the TEN governance forum and the opportunity to vote over 14 days to gauge interest. To vote you must hold at least one TEN token for 30 days or more
- A simple majority vote (more than 50%) against the proposal at this stage discourages progressing to level 2
Level 2: On-chain Voting Preparation
This second level is the first step towards formalizing the TIP and preparing for the more meaningful vote at the next level.
- Official submission via governance smart contracts on TEN
- Requires a wallet address representing at least 1 TEN token held for at least 30 days
- 3-day discussion period before voter snapshot and voting
Level 3: On-chain Vote
At this third level those who are eligible to vote will do so. There is a minimum threshold of engagement so only genuinely relevant TIPs are progressed.
- On-chain voting by participants of TEN's governance via Tally
- A simple majority vote in favor (more than 50%) plus meeting a minimum threshold of engagement means the TIP will be moved on to level 4 voting. The minimum threshold of engagement is 5% of all TEN tokens in circulation
- A majority vote against the TIP brings the lifecycle to an end. The original submitter is welcome to resubmit the TIP at Level 1 taking on board feedback and comments
Level 4: Acknowledge and Confirm
This fourth level is a safety backstop and is particularly important in the early life of TEN. Consider this level to be the training wheels.
- The TEN Governance Board are requested to acknowledge the voting outcome for the TIP
- Confirmation moves the TIP to the next Level
Level 5: Reaction Period
The fifth level recognizes not everyone can be satisfied all of the time therefore individuals have an opportunity to change how they engage with TEN.
- Post-approval 3-day period in which members of the TEN ecosystem can react to the approved TIP by changing how they engage with TEN, for example, withdrawing assets on TEN or deploying changes to smart contracts on TEN.
Level 6: TEN to Ethereum Message
The sixth level is an important step so the voting result can be immutably captured on Ethereum mainnet.
- Sending an L2-to-L1 message indicating TIP approval, finalizing on Ethereum mainnet
- A 12 hour period is ample time for the L2-to-L1 message to be finalized by the TEN validators
Level 7: Ethereum Finalization Period
This level is a safety margin in case there is a transaction in process on Ethereum which would be detrimentally affected by the execution of the TIP.
- 3-day period to finalize in-progress transactions on Ethereum mainnet before implementation
Level 8: TIP Implementation
This is the final level where the TIP is fully executed and implemented. Only a future TIP will change the end result of the TIP.
- Final execution of the TIP either on the Ethereum mainnet or via L1-to-L2 transactions
Additional Waiting Periods
For breaking changes, additional waiting periods mean stakeholders and partners can prepare for the TIP's changes. These waiting periods give time for members of the ecosystem to react to the TIP and make any necessary changes or updates.
Conclusion
The TIP process, spanning 8 levels, typically takes 40.5 days from start to finish. The levels have been designed to allow for thorough consideration, discussion, and thoughtful voting. This process aligns proposed changes with TEN's mission and values, allowing stakeholders to prepare for and adapt to new changes.