5.1 Dual currency model governance mechanism

LynkCoDAO innovatively adopts the dual-coin model governance mechanism of "main coin LNK + stablecoin USO", and builds a closed-loop system of "value anchoring-governance participation-ecological balance" through the functional division and synergistic linkage of the two tokens. This mechanism not only avoids the governance inefficiency caused by the "function overload" of a single token (such as price fluctuations affecting voting weights), but also enhances the anti-risk ability and community participation breadth of the system through dual-coin synergy. It is the core innovation that distinguishes it from OlympusDAO (single token OHM) and MakerDAO (stablecoin DAI).

#1 Dual currency positioning: functional division and value complementarity

LNK and USO are not simply "tokens and stablecoins", but "symbionts" with different functions in the governance system. Their differences in positioning directly determine the division of governance authority:

Token Type	core positioning	governance role	value support
LNK (main currency)	Ecological value carrier and governance core certificate	Own core proposal rights, key parameter adjustment voting rights (such as consensus anchor price, reserve changes)	Relying on the "Destruction Deflation + Community Consensus + Agreement Repurchase" mechanism, the price fluctuates around the community consensus price
USO (stablecoin)	Value exchange medium and stable anchor	Participate in stability mechanism-related governance (e.g. collateral type, dynamic mortgage rate threshold)	Relying on "diversified mortgage pool (cryptocurrency + fiat stablecoin + RWA) + algorithm adjustment", anchor $1

#2 LNK: The Core Carrier of Governance and the Anchor of Ecological Value

As the main currency, LNK is the "nerve center" of the LynkCoDAO governance system. The rights and interests of its holders are directly related to the formulation and evolution of ecological rules. The specific mechanisms include:

1. The Core Carrier of Proposal and Voting Rights

·Any LNK holder can initiate a governance proposal, covering core matters such as "adjusting the consensus anchor price", "adding USO collateral types", "modifying the ratio of pledge rewards" and "the plan for the use of treasury funds";

·The voting weight is linked to the amount of LNK positions and the duration of the pledge: the basic weight is "1 LNK = 1 voting right", and users who pledge for a long time (such as 360 days) can get 1.2 times the weight bonus, encouraging "deep consensus people" to lead governance;

·Threshold for proposals to pass: Ordinary proposals need to be supported by more than 50% of the voting weight, and major proposals (such as cross-chain expansion and core mechanism modification) need to be supported by more than 67% to ensure that decisions are in line with the consensus of the majority。

1. Dynamic Adjustment of Consensus Anchor Price The LNK price does not float freely, but fluctuates around the "community consensus price". The determination and adjustment of this price itself is the core governance scenario:

·The initial consensus price is set by voting by the Genesis community, and subsequent price adjustment proposals can be initiated by LNK holders every quarter. The proposals must explain the basis for "changes in the macro market environment", "growth of national treasury reserves" and "ecological expansion needs";

·The consensus price adjustment range should not exceed ± 10% at a time, and it needs to go through a 7-day publicity period (to collect community feedback) to avoid the impact of severe fluctuations on the ecology.

·The flexible supply mechanism of the agreement (rising and selling reserves, falling repurchase and contraction) is triggered based on the consensus price, ensuring that the will of governance directly affects market regulation.

1. Deep binding to ecological incentives The governance participation of LNK holders is directly linked to the income, forming a positive cycle of "governance is income":

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

·LNK holders who have long supported community consensus (such as pledging for 180 consecutive days and no malicious proposal behavior) can obtain the title of "consensus guardian", and have an additional 5% voting weight bonus in subsequent proposals;

·When the LNK price deviates from the consensus price due to market fluctuations, holders who actively participate in the "agreement intervention proposal" (such as initiating repurchases, adjusting the LP lock-up ratio) can receive additional LNK incentives (allocated from the national treasury).