Governance incentives and dispute resolution

Activate engagement and resolve differences

Governance incentives: making "participation" rewarding

• Voting Rewards: Users who participate in voting can share the "Governance Prize Pool" (funded by 50% of the tax on bonus withdrawals) according to their weight, which is distributed every 7 days;

• Proposal reward: If the passed proposal has a positive impact within 3 months (e.g. reducing the risk of USO de-anchoring), the sponsor can receive a 1000-5000 LNK reward issued by the state treasury.

• Node Incentive: Community nodes can receive 0.5% of the state treasury's LNK reward every quarter (evenly distributed by the number of nodes), but they need to pass the "community confidence vote" (if the support rate is less than 50%, they will be removed).

Dispute Resolution Mechanism: Let "Disagreements" Exit

• The Arbitration Board is composed of 9 community members (3 LNK holders, 3 USO holders, 3 technical contributors), who are responsible for mediating governance disputes (e.g. whether the proposal meets the core principles).

• Second Vote: If the first vote approval rate is close (e.g. 49% vs 51%), a second vote can be initiated (extending the discussion period by 3 days), allowing users to re-express their position.

• On-chain public mediation: The arbitration result needs to be publicized on the chain for 3 days. If the community opposition rate is > 30%, a "referendum" will be initiated (all users can participate, 1 vote and 1 right) to ensure that the final decision is in line with the will of the majority.

The core value of decentralized co-governance

The essence of LynkCoDAO's decentralized co-governance structure is to transform "community will" into "ecological rules" through technical means. Its core values are reflected in:

• Anti-manipulation: No individual or institution can monopolize the governance power, and the whole process of proposal, voting, and execution can be checked on the chain, eliminating capital manipulation.

• Adaptability: The hierarchical governance mechanism can handle both daily optimization and emergency crises, as well as build long-term strategic consensus and adapt to complex market environments.

• Sustainability: Governance and incentives are deeply bound, and users change from "passively accepting rules" to "actively formulating rules and profiting", forming an ecological positive cycle of "co-construction and sharing".

The ultimate goal of this structure is to make LynkCoDAO a "living protocol" - its rules are not defined by anyone, but dynamically evolved by community consensus; its fate is not determined by any event, but by the global membership.