Governance
Governance defines how decisions are made within the RAX Protocol.
It enables token holders to participate in shaping protocol parameters, incentives, and long-term direction while maintaining safety and stability.
Governance Scope
Governance may be used to decide on matters such as:
Risk parameter adjustments
Allocation and incentive configuration
Protocol upgrades and integrations
Treasury usage
Operational guardrails
Not all system parameters are subject to governance. Some constraints are fixed for safety reasons.
Participation Requirements
Governance participation may require:
Holding RAX tokens
Staking tokens for a defined period
Meeting minimum participation thresholds
These requirements are designed to promote informed and long-term engagement.
Proposal Lifecycle
Governance proposals typically follow a structured lifecycle:
Proposal creation
Review and discussion period
Voting phase
Execution or implementation
Specific timelines and thresholds are defined by protocol configuration.
Voting Mechanics
Voting power is generally proportional to staked token balance.
Additional mechanics may include:
Quorum requirements
Voting periods
Delegation mechanisms
These mechanics help ensure legitimacy and resistance to low-participation decisions.
Transparency and Records
All governance actions are recorded and auditable.
Governance history may include:
Proposal descriptions
Voting outcomes
Execution status
This transparency supports accountability and trust.
Progressive Decentralization
Governance is expected to evolve over time.
Early phases may involve more constrained governance, with decentralization increasing as the protocol matures and participation broadens.
Limitations
Governance does not:
Guarantee optimal outcomes
Eliminate risk
Replace responsible protocol stewardship
Safeguards exist to prevent governance actions that could compromise system integrity.
Summary
Governance allows RAX token holders to participate in shaping the protocol.
It balances decentralization with safety through structured processes and predefined limits.
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