> For the complete documentation index, see [llms.txt](https://whitepaper.genesisleaguesports.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.genesisleaguesports.com/governance/decentralized-autonomous-organization-dao.md).
# Decentralized Autonomous Organization (DAO)
The Genesis League Sports platform, including the GLX token, will be set up as a Decentralized Autonomous Organization or DAO via a series of smart contracts, which will be part of the GLS validator node software.
For a small fee, users can submit proposals to change nearly every aspect of the system, including, but not limited to, gameplay, token issuance, reward pools, use of funds, or even changes to the governance system itself. Once a proposal is submitted, all users with staked GLX tokens will have a chance to vote for or against the proposal, with the value of their vote being equal to the number of GLX tokens they have staked (i.e. 1 GLX token = 1 vote).
In order for a proposal to be approved, there will need to be a minimum number of GLX tokens that cast their vote and surpass the percentage of votes approving the proposal. For example, if 1M GLX tokens are staked, and 25% of the system needs to vote with 60% approval then at least 250k GLX tokens would need to cast their vote with a 60% approval rate. If a proposal is approved, the change will be automatically applied by the validator node software after a predefined delay to allow users time to prepare for the change after passing the proposal.
The DAO will also hold funds outside of the GLS validator system on external blockchain platforms such as Hive, Ethereum, and BSC. These funds will be held in multi-signature wallets controlled by the top voted validators voted on by staked GLX token holders.
If and when a governance proposal passes that contains a transaction to spend or utilize these tokens on an external blockchain platform, then the software run by the top-voted validators will submit a signature for the transaction as a `custom_json` transaction on the Hive blockchain, and once enough signatures have been collected then the transaction can be executed on the external chain.
### Sources of Income
The DAO will have various sources of income from the games on the GLS platform. While some of the initial plans for the DAO are laid out in this white paper, long term, the GLX stakeholders will be able to create proposals and vote on other ways to generate income. For example, GLX stakeholders could create a proposal to sell some amount of GLX reserve tokens if it is passed through a DAO vote.
As part of the initial smart contract for the DAO, the DAO will receive 100M GLX tokens over a 65-month period. These tokens may be used in a variety of ways, such as to help provide liquidity or be invested in other Defi protocols.
As users collect NFTs in the various games of GLS, they will have a need to buy, sell, and rent to further complete their collection, recognize value gains, or create passive income streams. The in-game marketplace on the GLS platform will streamline this process for users, and a portion of the nominal transaction fee will be returned to the DAO.
New game mechanics will be unlocked as part of the GLS platform. A portion of these in-game fees will be returned to the DAO and will include some new and existing mechanics. Some examples of mechanics are card recovery, purchasing consumable items, and leveling up NFTs in new and distinct ways. Additionally, different NFTs will be combinable to create nested NFTs that have additional boosts.
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