Governance Overview
Governance Concept
The governance concept is designed to ensure efficiency, decentralization and transparency of the Protocol. All Standard Token holders will be authorized to participate in the governance system.
To participate, token holders place their tokens in the platform’s native wallet (or a compatible wallet). Each token grants the holder the right to place one vote on each voting subject.Voting power is proportional to the number of tokens held. This mechanism is based on the game theory concept that large token holders will have less incentive to participate in bad actions that could harm the platform. It is the platform’s aim to reach a critical mass of token holders, protecting all stakeholders from centralisation problems.
Token holders who store their Standard tokens in not compatible wallets will not be able to participate in the voting mechanism. Therefore, it can be assumed that not all tokens will be cast as votes in one voting cycle. Voting cycles will only count tokens that are stored within a native wallet (or compatible wallet).
Voting Subjects
Token holders can place votes on various subjects at the same time. Every token enables token holders to place one vote on one subject.
For example, if a user holds 100 Standard Tokens, the user can place 100 votes on each and all open subjects.
The initial voting subjects should be:
Electing Governs and Auditors
Voting on key participants will become essential to the protocols success. As for now the most trusted people will come out of the core Team.
Stability Fee / Fee Structure
Standard Token holders will have the ability to vote on changing the stability fee, depending on the peg of the Standard Euro to the fiat Euro.
Adding and Changing Features
The Protocol is designed to grow into an ecosystem of competing collaterals and hard asset custodians. The Protocol also aims to find new use cases and to grow its features portfolio. Governed by the Standard DAO, the Protocol will follow a decentralised model to add new features. Such features may include new collaterals or the ability for Smart Vault to generate new stable coins such as US Dollar stable coins.
Native Custodians / Audit
Hard asset custodians that apply to onboard with the platform have to pass the due-diligence and the consensus of Standard Token holders. Standard Token holders can set and alter the onboarding requirements. It can be projected that such a decentralised inspection mechanism will lower the chances of bad actors joining the platform.
DAO Standard Token Treasury
All the Standard Token collected through the payment of stability fees are sent to the DAO Treasury reserve. Standard Token holders will be able to vote on the use of this reserve.
Emergency Shutdown
Standard Token holders can vote on emergency shutdowns to freeze the system. Such emergency shutdowns can occur in the event of severe market failure or when a bad actor discovers a flaw in the smart contract and starts stealing from the Protocol.
Once the problem has been resolved, Standard Token holders can vote to set the platform live again.
In general this can only be done if the technical requirements are met, certain actors are blocked from the system or certain policies get changed by the Governor.
Proposal System
Standard Token holders can create proposals that improve the Protocol. The Standard DAO has an underlying management system for voting on the proposals that differentiates between three proposal statuses:
Active proposal: If at least 20% of Standard Tokens registered on the voting system vote for a proposal to be approved, it changes its status and becomes an “Active Proposal”.
Upcoming proposals have not reached the 20% mark and are therefore not active.
Closed proposals status is achieved once votes have been casted, the voting time has expired, and a voting result has been achieved.
In the future, a prediction market system is planned as part of the Protocol’s governance mechanism.
Where to Vote
If you hold TST you can use your TST to vote on DAO specific topics or propose topics to vote on. Please be active in our Discord if you want to know more. In general voting is commenced through
Following list compatible wallets (there are more but these are the most popular ones).
Last updated