⚽Governance
ZDEX Governance Model: Empowering the Degen Nation 🏛️🚀
1. Introduction
Welcome to the ZDEX Governance Model, where every degen gets a say in shaping the future of decentralized finance! Our governance system is designed to be fair, transparent, and effective, ensuring that ZDEX remains at the cutting edge of DeFi innovation while staying true to its community-driven roots.
This document outlines the comprehensive framework for ZDEX governance, drawing inspiration from successful models like Uniswap and Aave, but with our own spicy twist. So strap in, because we're about to take a deep dive into the world of decentralized decision-making!
2. Governance Token: $ZDEX
At the heart of our governance model lies the $ZDEX token. It's not just a meme coin; it's your ticket to the greatest show in DeFi!
2.1 Token Utility
Voting rights in governance proposals
Proposal submission power
Staking for enhanced voting weight
Access to exclusive governance rewards
2.2 Token Distribution for Governance
10% of total $ZDEX supply allocated for governance incentives
Distributed over 4 years to encourage long-term participation
2.3 Voting Power Calculation
3. Governance Framework
The ZDEX governance framework is built on three pillars: Decentralization, Security, and Flexibility.
3.1 Decentralization
On-chain voting mechanism
Open participation for all $ZDEX holders
Transparent proposal and voting processes
3.2 Security
Multi-sig wallets for critical operations
Timelocks on proposal execution
Bug bounty program for governance smart contracts
3.3 Flexibility
Modular governance structure allowing for future upgrades
Adaptive quorum based on participation rates
Multi-chain governance capabilities
4. Proposal Process
4.1 Types of Proposals
Protocol Parameters: Adjusting fees, incentives, or other protocol variables
Smart Contract Upgrades: Implementing new features or security improvements
Treasury Management: Allocating funds for development, marketing, or community initiatives
Partnerships and Integrations: Collaborating with other protocols or services
Governance Updates: Modifying the governance process itself
4.2 Proposal Submission Requirements
Minimum Token Requirement: 100,000 $ZDEX (1% of governance allocation)
Proposal Fee: 1,000 $ZDEX (burned upon submission to prevent spam)
Cooldown Period: 7 days between proposals from the same address
4.3 Proposal Lifecycle
Draft: Community discussion and feedback (2 weeks)
Review: Core team assessment for technical feasibility (1 week)
Active: On-chain voting period (1 week)
Execution: Implementation of passed proposals (varies based on complexity)
Closure: Final report on proposal outcomes
5. Voting Mechanism
5.1 Voting Options
For
Against
Abstain
5.2 Quorum Requirements
5.3 Voting Period
Standard: 7 days
Emergency: 24 hours (requires approval from Governance Council)
5.4 Vote Counting
6. Execution of Proposals
6.1 Timelock
Standard Proposals: 48-hour timelock
Critical Proposals: 72-hour timelock
6.2 Execution Process
Passed proposal enters timelock
Community review period during timelock
Automatic execution after timelock expires
Transaction signing by multi-sig wallet for critical changes
6.3 Cancellation
Proposals can be cancelled during the timelock period if:
A critical vulnerability is discovered
Legal or regulatory concerns arise
A counter-proposal with higher votes is passed
7. Governance Tiers
To balance inclusivity with expertise, ZDEX implements a tiered governance system:
7.1 Citizen Tier
Requirements: Hold any amount of $ZDEX
Rights: Vote on all proposals, participate in discussions
7.2 Senator Tier
Requirements: Hold ≥ 1,000,000 $ZDEX or equivalent voting power
Rights: Submit proposals, vote with increased weight (1.5x)
7.3 Guardian Tier
Requirements: Hold ≥ 10,000,000 $ZDEX, pass KYC, and be elected by community
Rights: Emergency proposal submission, veto power on malicious proposals
7.4 Governance Council
9 members elected annually by $ZDEX holders
Responsibilities: Oversee governance process, approve emergency proposals, represent ZDEX in key decisions
8. Delegate System
Inspired by Aave's delegation model, ZDEX allows token holders to delegate their voting power.
8.1 Delegation Process
Token holders can delegate to any address
Delegation is flexible and can be changed at any time
Delegated voting power is updated in real-time
8.2 Delegate Leaderboard
Public leaderboard of top delegates
Delegate profiles with voting history and statements
8.3 Delegation Rewards
Delegates receive 5% of the governance rewards earned by their delegators
Encourages active and responsible delegation
9. Timelock and Security
9.1 Timelocked Executor
All governance actions go through a timelock
Timelocks are managed by a secure smart contract
9.2 Multi-sig Wallet
5-of-9 multi-sig wallet for critical operations
Members are elected annually by $ZDEX holders
9.3 Security Council
7 security experts elected by the community
Can freeze contracts for up to 72 hours in case of emergencies
10. Governance Incentives
10.1 Participation Rewards
10.2 Proposal Rewards
Successful proposals: 10,000 $ZDEX
Implemented proposals: Additional 20,000 $ZDEX
10.3 Governance Staking
Stake $ZDEX in governance pool
Earn share of 1% protocol fees proportional to stake
11. Emergency Procedures
11.1 Emergency Proposal
Can be submitted by Guardian Tier or above
24-hour voting period
Requires 66.67% approval with 20% quorum
11.2 Circuit Breaker
Automatically triggered if:
TVL drops by 50% in 24 hours
Smart contract vulnerability is detected
Regulatory action threatens protocol
11.3 Recovery Plan
Pre-approved recovery strategies for different scenarios
Implemented by Governance Council and Security Council
12. Governance Upgrades
12.1 Upgrade Process
Proposal for governance upgrade
2-week community discussion period
1-week voting period
75% approval required with 15% quorum
1-week timelock before implementation
12.2 Backward Compatibility
All upgrades must support previous governance actions
Grace period for users to adapt to new governance features
13. Community Engagement
13.1 Governance Forum
Dedicated space for proposal discussions
Categorized by proposal type and status
13.2 Regular Town Halls
Monthly video calls with Governance Council
Q&A sessions and proposal overviews
13.3 Education Program
"ZDEX Governance Academy" for new users
Governance participation rewards for completing courses
14. Governance Analytics
14.1 Dashboard
Real-time voting data
Historical proposal analysis
Voter participation trends
14.2 Governance Health Score
14.3 Impact Assessment
Quarterly reports on governance decisions and their effects on the protocol
15. Cross-Chain Governance
15.1 Multi-Chain Voting
Support for voting from multiple chains where $ZDEX is deployed
Cross-chain message passing for vote aggregation
15.2 Chain-Specific Proposals
Ability to create proposals affecting specific chains
Weighted voting based on chain TVL
15.3 Unified Governance View
Single interface for all chain-specific and global proposals
16. Legal and Compliance
16.1 Legal Framework
Clear terms of service for governance participation
Jurisdiction-specific warnings and restrictions
16.2 Compliance Checks
Integration with identity verification services for high-tier governance roles
Automated checks for sanctioned addresses
16.3 Transparency Reports
Quarterly publications on governance activities
Disclosure of any regulatory interactions
17. Conclusion
The ZDEX Governance Model is designed to be robust, flexible, and community-driven. By incorporating best practices from successful DeFi protocols and adding our own innovative features, we've created a governance system that can adapt to the ever-changing DeFi landscape while staying true to the principles of decentralization.
Remember, in the world of ZDEX, every degen has a voice. So stake your $ZDEX, cast your votes, and let's shape the future of DeFi together! 🚀🌙
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