Governance process
Closed loop from "proposal initiation" to "implementation implementation"
LynkCoDAO has designed a "four-stage governance process" to ensure that every decision is fully discussed, widely participated in, and rigorously validated, as follows:
Proposal initiation stage: creative entry with zero threshold
Any user (regardless of the amount of holdings) can initiate a proposal, which must include four elements: "proposal goal, implementation path, expected impact, and resource requirements" (e.g. "new SOL as USO collateral" needs to explain the liquidity of SOL, risk factor, and value to the stablecoin ecosystem);
To initiate a proposal, 100 LNK needs to be pledged as a "good faith gold" (to prevent malicious proposals). If the proposal is supported by more than 10% of the voting weight, the good faith gold will be returned; otherwise, it will be confiscated and injected into the national treasury to manage the prize pool.
Community discussion stage: a key step in consensus formation
After the proposal is initiated, it will enter a 7-day publicity period. The community can make suggestions for modification in the protocol forum or Discord channel, and the proponent can optimize the content based on feedback (up to 2 modifications).
Community nodes need to complete a "compliance review" within the publicity period, and remove proposals that "violate the core principles of the agreement" (such as proposing that "the project party retains LP control") or "logical vulnerabilities" (such as the reward mechanism may lead to out-of-control inflation), so as to avoid invalid voting consuming community energy.
Voting decision-making stage: democratic expression of multiple weights
After the announcement is passed, a three-day voting period will be held, and LNK and USO holders will exercise their voting rights according to the governance area.
Core rule proposals (such as adjusting the LNK consensus price): only LNK holders participate, with 50% + voting weight support.
Proposals for a stabilization mechanism (e.g., amending the USO clearing threshold): Only USO holders participate, with 50% + voting weight required.
Cross-disciplinary major proposals (such as launching cross-chain expansion): LNK and USO holders need to vote jointly, with their respective weights accounting for 60% and 40%, and the support rate needs to reach 67% +;
Voting uses a "double voting system": users can express their preferences for multiple proposals in order to avoid the "tyranny of the majority vote" (such as a single proposal passed by a small number of people with concentrated support, but the interests of the majority are harmed).
Implementation and supervision phase: the implementation of code assurance
After the vote is passed, the smart contract automatically executes the proposal within 24 hours (e.g. calling the reward module to update the Rebase ratio), and the execution result generates an on-chain certificate;
The community can initiate an "implementation supervision proposal" (more than 100 users need to be jointly named). If it is found that the implementation results do not match the content of the proposal (such as parameter update errors), it can start an "emergency correction process", which will be jointly reviewed and re-executed by the community nodes;
Publish a "governance white paper" every quarter to review the implementation effect of all proposals in the quarter (such as whether "adjusting the mortgage rate" reduces the liquidation risk), and provide reference for subsequent governance.
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