Governance
The team developed the initial version of the protocol and is handing over control to $BABL holders on public launch.
$BABL holders will share protocol ownership and vote on proposals through an on-chain governance system called the Babylon Governor. If you are new to blockchain governance, you can read more here.
We have designed the protocol with the goal of self-sustainability and governance-minimization. Coordination is a complex and expensive task. Members need assurances that the protocol is not going to change against their interests.
$BABL holders may change over time. In order to remain credible, the protocol needs to be resistant to value capture. Babylon has the smallest governance surface area needed to function, also known as “essential governance”.
The $BABL governance token will control the following:
- Treasury Management. $BABL holders will decide how to allocate the fees collected by the protocol.
- Protocol Fees. Management and performance fees can be changed through governance.
- $BABL Participation Rewards Program. Governance controls the parameters of the $BABL Participation Rewards Program.
- Integrations. $BABL holders will be able to add/remove integrations with other DeFi & Ethereum protocols.
- System upgrades. Proposals will be able to upgrade several core components of the protocol like the price oracle, Strategies or Gardens.
The team will work towards progressive decentralization. The founding team’s goal is to create a secure and usable protocol that reaches protocol-market fit. The ultimate goal is to remove any dependency from the founding team as soon as it is viable to do so. These are the expected stages of decentralization:
- Development and Alpha/Beta. Initially, there will be a multi-sig comprised of team members and advisors that will be able to change the protocol parameters and perform rescue functions in case of an emergency.
- Once the protocol is battle-tested and has reached a stable equilibrium, the team will remove the upgradeable contracts and hand over full control of the multi-sig. On-chain governance through Babylon Governor will be enabled.
Governance will be performed on-chain through Governor Alpha using $BABL weighted voting.
Protocol governance will decide:
- Controller
- Integrations to add/remove
- Edit Protocol fees
- Early penalty fee
- Profit split between participants
- $BABL split between participants
- List of Strategies
- BABL
- Mint tokens
- Issue inflation
- Garden
- Emergency shutdown of a community (for security reasons)
- Treasury
- How to allocate the protocol treasury ($BABL)
Last modified 1yr ago