Governance & Treasury

This page describes how the protocol is administered today and how the treasury/insurance will function on mainnet.

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1) Governance (Current)

• Testnet governance: centrally managed by core contributors (ops, parameters, upgrades).

• Parameter changes: announced in release notes; reflected in relayer/config as needed.

• Community input: via GitHub issues and public discussions; no on-chain voting at this stage.

There is no governance token and no DAO transition plan at this time.

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2) Treasury & Insurance (Mainnet Plan)

To improve resilience during volatility and tail events, mainnet will introduce a protocol treasury/insurance fund with the following goals:

• Shock absorption: cover deficits when extreme moves push trader losses beyond seized margin

• Stability incentives: fund programs that reward capital residency and rapid top-ups at high utilization

• Operational safety: support oracle/index redundancy and incident response

2.1 Funding Sources (Illustrative)

Exact splits will be published pre-launch; examples include:

• A configurable share of fees

• A configurable share of net funding residuals

• Occasional protocol allocations (e.g., bootstrap grants)

2.2 Withdrawal & Usage Policy

• Treasury usage is programmatic and rule-bound (e.g., deficit coverage after liquidation events)

• Transparent accounting via periodic reports and on-chain attestations where applicable

• Change management via published governance processes (still core-managed initially)

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3) Parameter Stewardship

Initial mainnet will keep parameter control with core maintainers, including:

• Funding curve scalar ψ, utilization cap U_cap

• Fee schedule (maker/taker)

• Oracle/index composition and guard-bands

• Risk guards (per-order margin caps, throttles)

Changes will be documented with clear activation epochs and migration steps.

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4) Community & Transparency

• Specs & change logs: consolidated in the docs site and GitHub repos

• Issue tracking: please open an issue in the appropriate GitHub repository for proposals or concerns

• No token, no DAO: the focus is operational excellence and stability first; governance decentralization is not planned at this time

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