Token House
The Token House, comprising of all $LEMON Token holders, represents the second body within the United Stands of Lemonade Legislature branch. It is responsible for submitting, deliberating and voting on governance proposals.
All $LEMON token holders may exercise voting rights directly (by delegating their voting power to their own wallet address), or by delegating their their $LEMON tokens to an eligible third party they believe to best represent their interests. Wallet addresses with delegated $LEMON tokens are called “delegates”.
Token House delegates represent the will and voice of $LEMON token holders. Proposals created by Token House fall within the following categories:
Ecosystem Fund
Lemonade Protocol Upgrade
$LEMON Token Inflation Adjustment
Foundation Director Removal
Legislature Treasury Appropriations
Code of Conduct Violations
Advisory Board Member Removal
Lemonade Grants Council Dissolution
Rights Protections
Elections
Ratification
Reflection Period
Proposal Process
The Token House works in collaboration with the Citizen House to enact governance proposals to execution. Proposals are accepted or rejected through a voting process, which must fall within the categories listed above, and must follow the procedure outlined below.
Voting Procedure
All governance proposals have a three week voting cycle.
Each “week” runs from Wednesday at 19:00p GMT (12p PST) until Tuesday 19:00 GMT (12p PST).
Ecosystem Fund Proposals
The Legislature is entrusted with 7.5% of the overall $LEMON Token supply under the purview of Token House for grants every quarter. Over time, as the Lemonade Superchain sequencer, platform and marketplace revenues grow, additional budgets may also be allocated at the discretion of the Lemonade Foundation and Citizen House.
The purpose of the Ecosystem Fund is to support Lemonade Stands and their various projects that create a positive impact towards a healthy and vibrant economy within the United Stands of Lemonade.
Token House delegates meeting a predefined a threshold of $LEMON tokens delegated will qualify to create proposals suggesting what type of projects and initiatives by Lemonade Stands qualify to request grants from the Ecosystem Fund. Additionally, the Executive Branch and Lemonade Foundation will also provide quests with a clear outline.
Token House Delegate Quest Applications are reviewed and selected by the Grants Council
Executive Branch Quest Applications are reviewed and selected by the Executive Branch representatives
Foundation Quest Applications are reviewed and selected by the Foundation
Lemonade Stand representatives submitting Quest Applications must follow the criteria and process outlined by Token House Delegates, Executive and Foundation for their respective Quests.
All Other Proposal Categories
Week 1-2: Feedback and Review
All other types of proposals not pertaining grants will be submitted on the governance portal to be created by the Executive branch. This portal will be open and and publicly accessible- with the ability for any $LEMON token holder, LemonHeads and Citizen to respond to. Proposal authors are expected to be responsive to any feedback from Citizens and other delegates.
Minimum $LEMON tokens delegated threshold for creating non-grant related proposals will initially be set by the Foundation, and over time handed over to the Token House delegates and Citizen House to define through quorum.
The Foundation intends to use Carbonvote as the portal once it is ready for production. However, initially it will start with the Lemonade Discord server and Snapshot to kickoff the communication and voting respectively. The Foundation and Executive Branch will assist Legislature to iterate a governance portal with clearly defined official procedures, template, thresholds for moving to a vote and other requirements through an iterative and collaborative process.
If a proposal author does not get explicit approval or wants more time for feedback, they should continue to seek feedback from the community and submit an updated proposal in the next voting cycle.
Week 3: Voting
In the third week, all Citizens and delegates (including $LEMON token holders who have self-delegated) are invited to vote on proposals. The Token House votes via the Lemonade Governance Portal. Non-grant proposals will be included in voting only if they were added to the Voting Cycle Roundup thread before the deadline and have the required approvals. Without explicit approval, proposals will not move to a vote.
A Token House governance proposal is approved if it satisfies the following minimum vote thresholds:
Quorum: The minimum number of total OP votes, including abstain votes, required to be cast in connection with a proposal. Here, a quorum is measured as a % of the total votable $LEMON supply, as of the start of the voting period. “Votable supply” is the total amount of $LEMON tokens that have been delegated, and therefore can participate in voting.
Approval threshold: The minimum number of $LEMON votes required to be cast in favor of approving a proposal. The approval threshold for each proposal is measured as % of votes cast to approve relative to the total number of yes/no votes cast in connection with a proposal. This does not include abstain votes.
Veto threshold: The minimum number of $LEMON votes required to be cast against a proposal, measured as a % of the total votable $LEMON supply, as of the start of the voting period.
A snapshot to determine voting power for each delegate will be taken at the commencement of a given voting period, and voting will be hosted on the Lemonade Governance Portal.
If a non-grant proposal is submitted for a vote and does not pass, the proposal will not be executed. If a proposal author wishes to iterate on a proposal that has been rejected, they should:
Create a new proposal.
Include a link to the first proposal that did not pass.
Clearly identify what has changed in the new proposal.
Veto Procedure
In due course, the Lemonade Foundation will introduce a bicameral governance system, empowering the Citizens’ House with select veto rights. The Citizens’ House will be able to veto protocol upgrades that have been approved by the Token House. The Citizens’ House will have a one week period, directly following the Token House voting period, to veto any approved protocol upgrade. Citizens may veto by casting a veto vote via the Citizens’ House Snapshot Space. Veto thresholds are specified for proposal types as outlined below. Please note veto thresholds may be adjusted iteratively.
Casting a veto is a serious decision. If a proposal approved in the Token House is vetoed by the Citizens' House, the proposal will not be enacted. In the case of Protocol Upgrades, vetoing may have serious consequences on engineering timelines and milestones. Proposals that may be vetoed by the Citizens' House have already been evaluated and approved by the Token House, which has been entrusted with primary responsibility over that proposal type. A Citizens' House veto may be appropriate if a proposal is believed to be malicious or to have been passed by a compromised Token House (either captured or acting out of self-interest rather than the United Stands of Lemonade’s interest.)
The different requirements for submission and approval of each Proposal Type are summarized below. All Quest Applications are processed by either an elected Grants Council or the Foundation. Quest Applications should follow the process outlined on each individual Mission Request.
Proposal Type
Proposing House
Description
Submission Requirements
Vote Duration
Quorum
Approval Threshold
Veto Threshold
Veto Rights
Ecosystem Fund
Token House
The Ecosystem Fund may be used to support development and/or growth of the ecosystem.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Lemonade Protocol Upgrade
Token House
Scheduled changes to the on-chain smart contracts comprising the impacting the $LEMON token, Lemonade Superchain, marketplace and/or platform fees.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
30%
Citizens' House
Inflation Adjustment
Token House
Changes to the inflation rate of newly minted $LEMON token (currently capped at 2% annually)
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
TBD
Citizens' House
Director Removal
Token House
Removal of a director of the Lemonade Foundation
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
NA
NA
Treasury Appropriations
Token House
The amount of $LEMON the Lemonade Foundation may spend or distribute annually
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Rights Protections
Token House
$LEMON holders must consent to any changes to the founding documents of the Lemonade Foundation, if those changes would materially reduce their rights
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Code of Conduct Violation
Token House
Token House Code of Conduct violations will be processed by the Judiciary, subject to veto by the Token House.
Proposals to be initiated by the Judiciary branch outlining any enforcement actions
Two-week review period plus one week voting window
NA
NA
12%
Token House
Lemonade Council or Advisory Board Member Removal
Token House
Lemonade Council or Advisory Board members may be removed from their position for failing to uphold the responsibilities outlined in the relevant Charter or to act with honesty, integrity, and transparency.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Council Dissolution
Token House
A persistent Council may be dissolved if it is no longer fulfilling its Charter
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Ratification
Token House
Ratification of governance documents
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Reflection Period Proposals (including elections)
Token House
Experiments with new governance structures, programs, and/or processes
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Approval and Veto thresholds for Governance proposals are an iterative process and may change over time.
Implementation and Administration
In all cases, United Stands of Lemonade governance is intended to be carried out consistent with the terms of its Working Constitution, the spirit of both the Fundamental Rights & Duties, and the pursuit of its vision. The Lemonade Foundation will steward this process as described below.
Administration
The Lemonade Foundation will facilitate the administration of the governance procedures described in this Operating Manual with the aim of ensuring that members of the community may participate thoughtfully in governance. Such administrative services may include:
Moderation of governance proposals to ensure they are validly submitted and voted upon;
Removal of proposals that reasonably appear to be fraudulent, spam-oriented, defamatory, hateful, or otherwise inappropriate or inconsistent with the values of Lemonade;
Monitoring of votes, voting power, the votable token supply, and voting periods for purposes of determining whether quorums and approval thresholds are met or accurately reflected;
Management of mutually contradictory proposals that are submitted simultaneously or in close proximity to one another;
Administration of network maintenance, such as emergency bug fixes or release rollbacks (with or without a governance vote); and
Such other things as the Foundation deems appropriate in connection with the above.
Implementation
Approved governance proposals will be routed to the Executive Branch or Lemonade Foundation for implementation. Upon receipt of an approved proposal, the Executive Branch or Lemonade Foundation will determine whether the proposal is safe, secure, consistent with the purposes of the Foundation and the United Stands of Lemonade, and capable of being implemented in a legally compliant manner (including completing KYC).
If it is, the Foundation will act diligently and in a commercially reasonable manner to cause the proposal to be implemented.
If it is not, the Foundation may remove the proposal for resubmission or cause the proposal to be implemented with certain guardrails, in its discretion, and coupled with an explanation to the community as to why the proposal was rejected or limited.
The Lemonade Foundation will undertake this ministerial work with a view towards transferring this ownership to the Executive Branch with an aim towards incrementally decentralizing its role over time.
Token House
The Token House, comprising of all $LEMON Token holders, represents the second body within the United Stands of Lemonade Legislature branch. It is responsible for submitting, deliberating and voting on governance proposals.
All $LEMON token holders may exercise voting rights directly (by delegating their voting power to their own wallet address), or by delegating their their $LEMON tokens to an eligible third party they believe to best represent their interests. Wallet addresses with delegated $LEMON tokens are called “delegates”.
Token House delegates represent the will and voice of $LEMON token holders. Proposals created by Token House fall within the following categories:
Ecosystem Fund
Lemonade Protocol Upgrade
$LEMON Token Inflation Adjustment
Foundation Director Removal
Legislature Treasury Appropriations
Code of Conduct Violations
Advisory Board Member Removal
Lemonade Grants Council Dissolution
Rights Protections
Elections
Ratification
Reflection Period
All Other Proposal Categories
Week 1-2: Feedback and Review
All other types of proposals not pertaining grants will be submitted on the governance portal to be created by the Executive branch. This portal will be open and and publicly accessible- with the ability for any $LEMON token holder, LemonHeads and Citizen to respond to. Proposal authors are expected to be responsive to any feedback from Citizens and other delegates.
Minimum $LEMON tokens delegated threshold for creating non-grant related proposals will initially be set by the Foundation, and over time handed over to the Token House delegates and Citizen House to define through quorum.
The Foundation intends to use Carbonvote as the portal once it is ready for production. However, initially it will start with the Lemonade Discord server and Snapshot to kickoff the communication and voting respectively. The Foundation and Executive Branch will assist Legislature to iterate a governance portal with clearly defined official procedures, template, thresholds for moving to a vote and other requirements through an iterative and collaborative process.
If a proposal author does not get explicit approval or wants more time for feedback, they should continue to seek feedback from the community and submit an updated proposal in the next voting cycle.
Week 3: Voting
In the third week, all Citizens and delegates (including $LEMON token holders who have self-delegated) are invited to vote on proposals. The Token House votes via the Lemonade Governance Portal. Non-grant proposals will be included in voting only if they were added to the Voting Cycle Roundup thread before the deadline and have the required approvals. Without explicit approval, proposals will not move to a vote.
A Token House governance proposal is approved if it satisfies the following minimum vote thresholds:
Quorum: The minimum number of total OP votes, including abstain votes, required to be cast in connection with a proposal. Here, a quorum is measured as a % of the total votable $LEMON supply, as of the start of the voting period. “Votable supply” is the total amount of $LEMON tokens that have been delegated, and therefore can participate in voting.
Approval threshold: The minimum number of $LEMON votes required to be cast in favor of approving a proposal. The approval threshold for each proposal is measured as % of votes cast to approve relative to the total number of yes/no votes cast in connection with a proposal. This does not include abstain votes.
Veto threshold: The minimum number of $LEMON votes required to be cast against a proposal, measured as a % of the total votable $LEMON supply, as of the start of the voting period.
A snapshot to determine voting power for each delegate will be taken at the commencement of a given voting period, and voting will be hosted on the Lemonade Governance Portal.
If a non-grant proposal is submitted for a vote and does not pass, the proposal will not be executed. If a proposal author wishes to iterate on a proposal that has been rejected, they should:
Create a new proposal.
Include a link to the first proposal that did not pass.
Clearly identify what has changed in the new proposal.
Veto Procedure
In due course, the Lemonade Foundation will introduce a bicameral governance system, empowering the Citizens’ House with select veto rights. The Citizens’ House will be able to veto protocol upgrades that have been approved by the Token House. The Citizens’ House will have a one week period, directly following the Token House voting period, to veto any approved protocol upgrade. Citizens may veto by casting a veto vote via the Citizens’ House Snapshot Space. Veto thresholds are specified for proposal types as outlined below. Please note veto thresholds may be adjusted iteratively.
Casting a veto is a serious decision. If a proposal approved in the Token House is vetoed by the Citizens' House, the proposal will not be enacted. In the case of Protocol Upgrades, vetoing may have serious consequences on engineering timelines and milestones. Proposals that may be vetoed by the Citizens' House have already been evaluated and approved by the Token House, which has been entrusted with primary responsibility over that proposal type. A Citizens' House veto may be appropriate if a proposal is believed to be malicious or to have been passed by a compromised Token House (either captured or acting out of self-interest rather than the United Stands of Lemonade’s interest.)
The different requirements for submission and approval of each Proposal Type are summarized below. All Quest Applications are processed by either an elected Grants Council or the Foundation. Quest Applications should follow the process outlined on each individual Mission Request.
Proposal Type
Proposing House
Description
Submission Requirements
Vote Duration
Quorum
Approval Threshold
Veto Threshold
Veto Rights
Ecosystem Fund
Token House
The Ecosystem Fund may be used to support development and/or growth of the ecosystem.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Lemonade Protocol Upgrade
Token House
Scheduled changes to the on-chain smart contracts comprising the impacting the $LEMON token, Lemonade Superchain, marketplace and/or platform fees.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
30%
Citizens' House
Inflation Adjustment
Token House
Changes to the inflation rate of newly minted $LEMON token (currently capped at 2% annually)
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
TBD
Citizens' House
Director Removal
Token House
Removal of a director of the Lemonade Foundation
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
76%
NA
NA
Treasury Appropriations
Token House
The amount of $LEMON the Lemonade Foundation may spend or distribute annually
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Rights Protections
Token House
$LEMON holders must consent to any changes to the founding documents of the Lemonade Foundation, if those changes would materially reduce their rights
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Code of Conduct Violation
Token House
Token House Code of Conduct violations will be processed by the Judiciary, subject to veto by the Token House.
Proposals to be initiated by the Judiciary branch outlining any enforcement actions
Two-week review period plus one week voting window
NA
NA
12%
Token House
Lemonade Council or Advisory Board Member Removal
Token House
Lemonade Council or Advisory Board members may be removed from their position for failing to uphold the responsibilities outlined in the relevant Charter or to act with honesty, integrity, and transparency.
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Council Dissolution
Token House
A persistent Council may be dissolved if it is no longer fulfilling its Charter
Forum + On-Chain Voting
Two-week review period plus one week voting window
30%
51%
NA
NA
Ratification
Token House
Ratification of governance documents
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Reflection Period Proposals (including elections)
Token House
Experiments with new governance structures, programs, and/or processes
Proposals to be initiated by the Foundation
Two-week review period plus one week voting window
30%
51%
NA
NA
Approval and Veto thresholds for Governance proposals are an iterative process and may change over time.
Administration
The Lemonade Foundation will facilitate the administration of the governance procedures described in this Operating Manual with the aim of ensuring that members of the community may participate thoughtfully in governance. Such administrative services may include:
Moderation of governance proposals to ensure they are validly submitted and voted upon;
Removal of proposals that reasonably appear to be fraudulent, spam-oriented, defamatory, hateful, or otherwise inappropriate or inconsistent with the values of Lemonade;
Monitoring of votes, voting power, the votable token supply, and voting periods for purposes of determining whether quorums and approval thresholds are met or accurately reflected;
Management of mutually contradictory proposals that are submitted simultaneously or in close proximity to one another;
Administration of network maintenance, such as emergency bug fixes or release rollbacks (with or without a governance vote); and
Such other things as the Foundation deems appropriate in connection with the above.
Implementation
Approved governance proposals will be routed to the Executive Branch or Lemonade Foundation for implementation. Upon receipt of an approved proposal, the Executive Branch or Lemonade Foundation will determine whether the proposal is safe, secure, consistent with the purposes of the Foundation and the United Stands of Lemonade, and capable of being implemented in a legally compliant manner (including completing KYC).
The Lemonade Foundation will undertake this ministerial work with a view towards transferring this ownership to the Executive Branch with an aim towards incrementally decentralizing its role over time.
If it is, the Foundation will act diligently and in a commercially reasonable manner to cause the proposal to be implemented.
If it is not, the Foundation may remove the proposal for resubmission or cause the proposal to be implemented with certain guardrails, in its discretion, and coupled with an explanation to the community as to why the proposal was rejected or limited.
Proposal Process
The Token House works in collaboration with the Citizen House to enact governance proposals to execution. Proposals are accepted or rejected through a voting process, which must fall within the categories listed above, and must follow the procedure outlined below.
Voting Procedure
All governance proposals have a three week voting cycle.
Each “week” runs from Wednesday at 19:00p GMT (12p PST) until Tuesday 19:00 GMT (12p PST).
Ecosystem Fund Proposals
The Legislature is entrusted with 7.5% of the overall $LEMON Token supply under the purview of Token House for grants every quarter. Over time, as the Lemonade Superchain sequencer, platform and marketplace revenues grow, additional budgets may also be allocated at the discretion of the Lemonade Foundation and Citizen House.
The purpose of the Ecosystem Fund is to support Lemonade Stands and their various projects that create a positive impact towards a healthy and vibrant economy within the United Stands of Lemonade.
Token House delegates meeting a predefined a threshold of $LEMON tokens delegated will qualify to create proposals suggesting what type of projects and initiatives by Lemonade Stands qualify to request grants from the Ecosystem Fund. Additionally, the Executive Branch and Lemonade Foundation will also provide quests with a clear outline.
Lemonade Stand representatives submitting Quest Applications must follow the criteria and process outlined by Token House Delegates, Executive and Foundation for their respective Quests.
Token House Delegate Quest Applications are reviewed and selected by the Grants Council
Executive Branch Quest Applications are reviewed and selected by the Executive Branch representatives
Foundation Quest Applications are reviewed and selected by the Foundation
Implementation and Administration