Skip to main content

Governance Model (1)

Xythum Labs Governance Model

1. Token-Based Governance​

1.1 Governance Token​

  • Introduce XYTH, the native governance token of Xythum Labs.
  • XYTH tokens represent voting power in the Xythum ecosystem.

1.2 Token Distribution​

  • Initial distribution: 3 billion
  • Implement a fair launch mechanism to distribute tokens to early adopters and liquidity providers.

2. Decentralized Autonomous Organization (DAO)​

2.1 DAO Structure​

  • Establish the Xythum DAO as the governing body.
  • All XYTH (Threshold: 21k tokens = 1 vote) token holders are members of the DAO.

2.2 Proposal System​

  • Any XYTH holder can submit proposals for protocol changes, upgrades, or resource allocation.
    • Governance Power
      • Suggest and review new chains added to the network
      • Vote for adjusting protocol Fee
      • Vote for community actions, Nft launches and events
      • Organize grants, hackathons and meetups
      • Reward incentive Scheme

Note: Initial development will be completely under control of TEAM and execution

  • Implement a tiered proposal system:
    • Tier 1 (Minor): Requires 1% of total XYTH supply to propose, 51% approval to pass.
    • Tier 2 (Moderate): Requires 2.5% to propose, 65% approval to pass.
    • Tier 3 (Major): Requires 5% to propose, 75% approval to pass.

2.3 Voting Mechanism​

  • Implement a quadratic voting system to balance influence between large and small token holders.
  • Votes are calculated as the square root of the number of tokens committed to a vote.
  • Include an option for delegate voting, allowing token holders to delegate their voting power.

4. Node Operator Governance​

4.1 Node Operator Participation​

  • Implement a separate voting category for active node operators.
  • Node operators have weighted votes on technical proposals related to network operations.

4.2 Node Operator Quorum​

  • Require a quorum of 66% of active node operators for passing technical proposals.

5. Governance Incentives​

5.1 Participation Rewards​

  • Distribute XYTH tokens as rewards for active participation in governance (voting, proposal creation).
  • Implement a decay function for rewards to incentivize consistent participation.

5.2 Staking for Governance​

  • Allow XYTH holders to stake their tokens for enhanced voting power and rewards.
  • Implement different staking periods (3, 6, 12 months) with increasing rewards for longer commitments.

6. Transparency and Communication​

6.1 Regular Updates​

  • Mandate weekly updates on ongoing projects and fund allocation.
  • Require quarterly reports on the state of the protocol, including financial health and key metrics.

6.2 Open Forums​

  • Maintain active discussion forums for governance topics.
  • Host monthly AMAs with council members and core developers.

7. Security and Risk Management​

7.1 Timelock Mechanism​

  • Implement a tiered timelock system for executing approved proposals:
    • Tier 1: 24-hour delay
    • Tier 2: 72-hour delay
    • Tier 3: 7-day delay

7.2 Security Council​

  • Establish a 5-member security council, elected separately from the main council.
  • Grant the security council power to pause protocol functions in case of emergencies (subject to DAO review).

8. Continuous Improvement​

8.1 Governance Review​

  • Schedule bi-annual governance model reviews.
  • Allow the community to propose and vote on governance structure changes.

8.2 Futureproofing​

  • Include provisions for upgrading the governance model to account for future scaling and technological advancements.