> For the complete documentation index, see [llms.txt](https://docs.muesliswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.muesliswap.com/dao/matchmaker-governance-developer/how-the-system-works.md).

# How the System Works

Our product is built around the idea that governance should directly control real actions on-chain. Instead of having a single authority decide who can operate a matchmaker, the DAO collectively makes that decision and can change it over time.

A matchmaker starts by creating a **license request** through governance. This request is an on-chain voting object. DAO members can add their support or remove it at any time. Votes are not final once cast; they reflect the current opinion of the community.

A processor updates the on-chain governance state so that the current voting result is always visible and verifiable. When enough support is reached, a **license NFT** can be minted. This NFT represents the right to operate as a matchmaker for a limited time.

The license is intentionally temporary. Each license has an expiration timestamp built into it. When the license expires, the matchmaker must renew it by maintaining enough DAO support. If the community no longer supports the matchmaker, renewal becomes impossible and the matchmaker automatically loses their operational rights.

This approach avoids complex revocation mechanisms and keeps the system simple and transparent. No special “admin action” is needed to remove a matchmaker. The absence of ongoing support is enough.

To help DAO members make informed decisions, our product also includes a **monitoring backend**. This backend indexes blockchain activity and calculates performance metrics for matchmakers. These metrics are shown directly in the governance dashboard so voters can see how matchmakers behave before deciding whether to support or revoke them.


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