> For the complete documentation index, see [llms.txt](https://delnorte-terra-vision.gitbook.io/delnorte-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delnorte-terra-vision.gitbook.io/delnorte-docs/delnorte-dao-governance-burn-process-and-token-ecosystem.md).

# Delnorte DAO: Governance, Burn Process, and Token Ecosystem

**DAO Burn Process**

When a DAO no longer holds assets and all token holders have received their distributions, it can remain as an entity for future use or be permanently dissolved through a **"burn" Issue**. This structured burn process ensures accountability and fairness while safeguarding any real-world structures associated with the DAO.

**Steps for DAO Burn:**

1. **Burn Issue Election**:
   * A vote to dissolve the DAO is initiated per the governance structure, and upon approval, token trading is suspended.
2. **Real-World Asset Sale**:
   * The DAO manager liquidates the real-world company or assets, transferring proceeds to an escrow account in fiat.
3. **Final Distribution**:
   * The manager distributes the remaining funds to token holders in Ether proportionally.
4. **Burn Execution**:
   * The DAO contract is permanently destroyed, rendering its tokens invalid.
   * The associated real-world structure remains unaffected unless explicitly dissolved.