Governance & DAO
VectorX402 operates as a Decentralized Autonomous Organization (DAO), where token holders collectively govern the protocol's evolution and critical parameters.
Governance Structure
The VectorX402 DAO enables token holders to:
Propose Changes: Any holder with sufficient tokens can submit governance proposals.
Vote on Proposals: Voting power is proportional to token holdings, with quadratic voting mechanisms to prevent whale dominance.
Execute Decisions: Approved proposals are automatically executed via smart contracts.
Governance Parameters
Key protocol parameters subject to governance include:
Slashing Thresholds: Minimum stake requirements and slashing percentages for quality violations.
Supported Models: Which embedding models are approved for Memory Shard creation.
Protocol Fees: Transaction fees and their distribution between node operators, curators, and treasury.
Network Upgrades: Technical improvements to the protocol infrastructure.
Treasury Management: Allocation of protocol revenue and reserves.
Proposal Lifecycle
Discussion Phase: Proposals are discussed in community forums and Discord.
Formal Submission: Proposer submits on-chain proposal with required token deposit.
Voting Period: Token holders vote over a specified period (typically 7 days).
Execution: If approved, the proposal is executed automatically or by designated multisig.
Review: Post-execution review ensures proposals achieve intended outcomes.
Participation Incentives
To encourage active governance participation:
Voting Rewards: Token holders who vote receive small token rewards.
Proposal Bounties: Successful proposals that improve the protocol receive bounties.
Delegation: Holders can delegate voting power to trusted representatives while maintaining token ownership.
This governance model ensures VectorX402 remains adaptive and responsive to the needs of its growing ecosystem.
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