An Nexus Mutual Protocol Improvement Proposal (NMPIP) is a proposal to signal or enact change to the Nexus Mutual protocol. These proposals are used to engage with the community, reach consensus, and enact proposals if approved through an on-chain vote.
About NMPIPs
Members can post, discuss, and vote on proposals that fall into one of the following categories:
- Upgrades, technical changes, use of funds. Members can propose changes to protocol parameters and incentives, the capital model, and the pricing mechanism. When new products are developed, an NMPIP is shared, discussed, and voted on by members. All investment allocations or any use of capital pool funds require an NMPIP and vote before execution, as well.
- Critical decisions. In extreme circumstances, members can create an NMPIP and hold an on-chain vote to decide if Nexus Mutual should make changes to the Advisory Board, stop cover purchases, or wind up and shut down.
NMPIP governance process
Step 1: Post a Request for Comment (RFC)
Every governance discussion should start as a Request for Comment (RFC) to get feedback from the community and, if applicable, the engineering team.
RFCs should be posted for a minimum of 12 days before they are raised as formal NMPIPs. The feedback you receive can be used to revise your proposal ahead of a NMPIP posting.
RFC format
Title. [RFC]: [Concise title for proposal]. For example: [RFC]: Invest some of the mutuals funds in LIDO stETH
Summary. Short summary, no more than 250 words, of your proposal.
Rationale. Explain why your proposal is important: what problem does it solve?
Specification. The what and how of your proposal. What is the purpose of your proposal and how does it solve the stated problem, benefit members, or improve the protocol?
Step 2: Post an NMPIP
When you are ready to write an NMPIP, you should include the following information:
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Title. NMPIP: [Concise title for proposal]. For example: NMPIP: Invest some of the mutuals funds in LIDO stETH
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Summary. Short summary, no more than 250 words, of your proposal.
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Rationale. Explain why your proposal is important: what problem does it solve?
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Specification. The what and how of your proposal. What is the purpose of your proposal and how does it solve the stated problem, benefit members, or improve the protocol?
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Technical requirements. Outline any development resources and requirements necessary for your proposal to be implemented.
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Proposal status. Depending on what stage your proposal is in, you must include:
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Stage. One of the following should be added: 1) Open for Comment, 2) Closed, 3) Open for voting, 4) Accepted, or 5) Rejected.
- If you choose to conduct a signaling vote using Snapshot, please update status to Signaling Vote and link to that vote. Signaling votes can be used but are not required.
- If it is in the open for vote stage, add the link to the on-chain proposal
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Stage. One of the following should be added: 1) Open for Comment, 2) Closed, 3) Open for voting, 4) Accepted, or 5) Rejected.
Other sections may be added, but the above should be outlined in any NMPIP proposal.
Review and discussion period
An NMPIP should be open for review and comment for at least 14 days before requesting to have your proposal whitelisted by the Advisory Board.
NMPPs can be in the open for comment stage for longer periods of time, but there is a minimum to ensure review, feedback, and discussion can occur before the proposal is reviewed by the Advisory Board.
To learn more about whitelisting a proposal for an on-chain vote, read the Nexus Mutual Protocol Improvement Proposals section in the documentation.