Responsibilities Of The DAO

Adding And Removing Validators

Through voting users have the ability to add or remove specific validators from the whitelist.
Adding validators represents increasing decentralization, but only trusted entities should be added or else the bridge protocol will be at risk of attack if more than 50% of validators are bad actors.
The number of validators cannot be increased indefinitely because the requirements of keeping all nodes synchronized and keeping up with the latest blocks eventually reaches a limit at the speed of all of the nodes’ connections to each other.
Too high a rate of adding new validators represents higher risk of attack, greater chance of downtime as validators initially set up their nodes and get accustomed to the requirements of using new tooling, and increases the risk of adding too many validators all at once who may attempt to collude. Thus it is recommended that this is scaled up gradually.
Removing validators will most often represent removing bad actors who tried to game the system or potentially removing entities who are closing down and will no longer be performing validation services (without having done anything particularly wrong).

Voting For Launching New Sidechains

Though the M-1 sidechain is the first one that will be deployed, users will have the ability to create proposals and vote on adding new sidechains in the future.
Each of these proposals will also be tied together with a treasury spending request due to the high upfront development cost of setting up the infrastructure and deploying a sidechain that requires a professional team. If the community is behind deploying a new sidechain, it is expected that multiple competing dev teams will submit proposals to deploy said sidechain and integrate it with the rest of the infrastructure/contracts.

Spending Treasury Funds to Fund the Sidechain Ecosystem

Besides spending treasury funds for deploying new sidechains, users will also vote on proposals to fund smaller projects that benefit the project and wider sidechain ecosystem.
These proposals may range from adding bridges from sidechains to alternative L1 blockchains (to provide interoperability), adding direct improvements in the tech stack of a specific sidechain, or even potentially improving VMs/smart contract capabilities.

Deciding Which Stake Pools Are Delegated To

The base asset of each side chain is the native asset of the main chain it is connected to. For Cardano this means that when users lock ADA on the Cardano mainnet to send it over the bridge to the sidechain, the ADA will be available to use for staking.
Users will be able to vote on the stake pools that will be delegated to. Due to ADA moving in/out of the sidechain bridge, the amount delegated will be in constant flux. As such, users will decide on the list of potential pools that will be delegated to, and the auto-delegator will manage the UTXOs to optimize for a fair distribution of ADA being delegated to each.

Accepting Token Registry Proposals

In order for tokens to be supported by the sidechain bridge, and thus transferable from the L1 mainnet to a specific sidechain and vice versa, the token must be added to the sidechain’s token registry. This establishes the connection between the mainnet asset and the sidechain asset.
Users will have the ability to create proposals and vote to add new tokens to a token registry, enabling that token to be used on the sidechain.

Verifying & Accepting New Wrapped Smart Contracts

Each wrapped contract that users will be able to use on Cardano mainnet must be added to the wrapped interface registry. This provides a source of truth for how the wrapped contract is intended to be interfaced with, in addition to guaranteeing which wrapped contracts are supported and thus are not scams.
Users dictate the list of available wrapped contracts by voting to accept new proposals to add them after verifying that they are indeed implemented correctly (with the help of developers ensuring that the wrapped contracts were properly deployed).