Glossary

Terms and abbreviations used in XDAO documentation.

Term	Definition
Absolute majority voting	A quorum requires 50% + 1 vote.
Approve	Permission granted to a smart contract or Dapp to interact with a specified amount of tokens on the DAO's balance.
AUM (Assets Under Management)	All assets managed by the DAO.
Burn LP	Destruction of LP tokens by their holder; in exchange, the holder receives a proportional share of the DAO's assets. Available when managers have enabled LP Burning.
Consensus	The principle by which any action permitted under the DAO's rules is carried out only after a vote is created and a quorum is reached.
Crowdfunding	Public sale of LP tokens: any address, or addresses from a whitelist, can participate.
Custom	A DAO mode where members can hold different amounts of GT and, accordingly, different voting power.
DAO (Digital Autonomous Organization)	A digital autonomous organization: a form of organization where members' activity is based on rules set in smart contracts, and decisions are executed only when consensus is reached.
DEX (Decentralized Exchange)	A decentralized exchange.
Dividends	Distribution of DAO funds among holders of LP, GT, or any other selected tokens.
Gas	The network fee charged for processing a transaction on the blockchain.
GT (Governance Token)	A token that grants the right to create and participate in votes. It has no price, cannot be sent via a regular transfer, and can only be issued or transferred through a DAO vote. The GT address is the same as the DAO address.
Hybrid voting	Members vote off-chain with a unique signature, while the result is processed on-chain. This significantly reduces gas costs without compromising security.
Launchpad	A platform for publicly launching a token sale. In XDAO, it is implemented through Crowdfunding.
LP (Liquidity Provider Token)	An investment token following the ERC-20 standard, backed by the DAO's assets. The price of one LP = DAO AUM / number of LP tokens in circulation. When burned, the holder receives a proportional share of the AUM.
Manager	A GT holder who can create votes and participate in managing the DAO.
Member	A holder of GT in this DAO.
Minting	The creation of new tokens: GT for members, or LP when raising funds.
Module	A special smart contract that adds extra functionality to a DAO.
Multisig	A DAO mode in which all managers hold one GT each and have equal voting power.
Off-chain voting	A vote whose result is not recorded on the blockchain and is not executed automatically; typically used for community polls.
On-chain voting	A vote that is recorded on the blockchain; the result is executed automatically once a quorum is reached. Requires gas costs.
Permitted address	An address or smart contract permitted to perform operations on behalf of the DAO without a vote.
Private Offer	A targeted sale of LP tokens to a specific buyer at a pre-agreed price.
Private Exit Offer	A targeted offer, created by DAO managers, that lets an LP holder exit the DAO: burn their LP and receive pre-defined assets.
Proposal	An off-chain poll of the DAO community based on holding a selected token (GT, LP, or any other).
Quorum	The minimum share of GT that holders must support for a vote to be considered legitimate and for the decision to be executed.
Total Sale Amount	The total sale amount in Crowdfunding, including the fee — specified by the project during setup.
Treasury	All funds and assets on the DAO's balance.
Vesting	The gradual unlocking of purchased tokens according to a set schedule.
Voting power	A member's share of voting weight, proportional to the amount of GT they hold.
WalletConnect	The protocol through which a DAO or wallet connects to external DeFi applications (Dapps).
Whitelist	A list of addresses permitted to participate in a token sale.