> For the complete documentation index, see [llms.txt](https://token-engineering-commons.gitbook.io/tec-handbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://token-engineering-commons.gitbook.io/tec-handbook/hatch-101/welcome-hatchers/hatch-dao-boundaries.md).
# Hatch DAO boundaries
We are following Ostrom's 8 principles for governing the commons and "clearly defined boundaries" is her 1st principle. The strategy we adopted to set and communicate the boundaries of our various components is by listing the actions individuals can take and the ones they are encouraged not to.
### Hatch Dao Main Actions
* wxDAI can be sent to the Hatch DAO but only up to the hatcher **CSTK score** based on the [**CSTK Ratio**](https://forum.tecommons.org/t/cstk-ratio-deep-dive/141)
* When wxDAI is sent, **TECH** tokens are minted based on the [**Hatch Exchange Rate**](https://forum.tecommons.org/t/hatch-exchange-rate/190)
* There is a hatching period that will be decided by the [Hatch Time Limit](https://forum.tecommons.org/t/hatch-time-limit-deep-dive/63/17). During the hatching period no actions other than sending wxDAI can be taken.
* If the [Hatch Min Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62) is reached Cultural Build Tribute and Hatch Tribute are applied.
* The Hatch DAO is like a Moloch DAO. Hatchers can rage quit and redeem their share of the redeemable pool at any time unless they voted yes on a proposal. In this case they need to wait until that proposal is executed.
* Hatchers can Vote and control the DAO’s Funds
* Hatcher can Vote to upgrade the DAO’s smart contracts and parameters
* Hatchers can vote to mint and burn tokens
* Hatchers can vote on the wxDAI split ratio between reserve and [funding pools](https://forum.tecommons.org/t/guide-testtec-dao-3-bonding-curve/75)
* People can create proposals in the Dandelion Voting app paying the required [tollgate fees](https://forum.tecommons.org/t/tollgate-fee-deep-dive/128).
* Hatchers can claim 100% of their funds back if the Hatch doesn't reach its [Minimum Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62),
* In this case, the funds will be available until they are claimed with no time frame.
* IH tokens holders will receive TECH tokens via the cultural build tribute if hatch [Minimum Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62) is reached
* TECH token holders will be able to vote on token log to determine the parameters of the commons upgrade.
* TECH token holders will ratify the parameters for the Commons upgrade via TEC Hatch DAO
* When the parameters are ratified the Commons upgrade will move funds into a new DAO and everyone with TECH tokens will receive TEC
* Once the TEC Hatch DAO is upgraded to a full Commons, anyone can join the TEC via the bonding curve.
#### **What actions or outcomes are required?**
* Participants of the TEC Hatch DAO are aware that unexpected behaviors can happen and the decision making power is all within the TECH token holders.
* Hatchers agree to the TEC Hatch Terms
* It is required that Hatchers join the [Commons Stack Swiss Association for legal protection](https://forum.tecommons.org/t/tec-legal-strategy-proposal-vote/193).
**What actions or outcomes are discouraged?**
* Disrespecting our code of conduct
* Failing to comply to the [TEC Hatch Terms](https://docs.google.com/document/d/1voxAC_XZfbElTF8NRDTrB4Kaz3Js2J9ShvHx5FsUcdA/edit)
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