Governance
Overview
Staked GX grants governance power over the GX protocol. Token holders propose and vote on changes that shape the exchange — from listing new markets to adjusting protocol parameters. All governance executes on-chain with automatic enforcement after timelock.
Governance Parameters
| Parameter | Value |
|---|---|
| Eligible Voters | Staked GX holders only |
| Voting Power | 1 staked GX = 1 vote |
| Voting Period | 5 days |
| Voting Options | Yes, No, Abstain |
| Quorum | 10% of total staked supply must vote |
| Pass Threshold | >50% of votes cast (excluding Abstain) |
| Proposal Threshold | 100,000 GX staked minimum |
| Execution Timelock | 24 hours after vote passes |
Proposal Types
| Type | Description | Examples |
|---|---|---|
| Market Listings | Add or remove perpetual futures markets | List ARB-USD perpetual |
| Fee Changes | Adjust maker/taker fee rates or fee distribution | Increase staker share to 65% |
| Treasury Spending | Allocate protocol treasury funds (funded by 20% of all trading fees) | Grant 500K GX for ecosystem development |
| Protocol Upgrades | Modify core protocol parameters | Increase max leverage to 100x |
| Parameter Changes | Adjust margin, funding, or liquidation parameters | Change maintenance margin to 2% |
Governance Process
Step 1: Proposal Submission
Any staked GX holder with at least 100,000 GX can submit an on-chain proposal. The proposal must include:
- Title and description
- Specific parameter changes or actions
- Rationale and expected impact
- Implementation timeline
Step 2: Discussion Period (2 days)
Community debate on the GX governance forum before voting opens. The proposer responds to questions and may amend the proposal.
Step 3: Voting Period (5 days)
Staked GX holders cast Yes, No, or Abstain votes. Voting power is determined by the staked GX balance at the snapshot block (start of voting period).
Step 4: Execution
If quorum (10%) and pass threshold (>50%) are met:
- Proposal enters a 24-hour timelock
- After timelock expires, the proposal executes on-chain automatically
- Parameter changes take effect in the next block after execution
If quorum or pass threshold is not met, the proposal fails. Failed proposals can be resubmitted after a 7-day cooldown.
Voting Power
Voting power is based exclusively on staked GX at the snapshot block:
- Unstaked GX has no voting power
- Tokens in the 7-day unstaking cooldown have no voting power
- Tokens delegated to validators retain voting power with the delegator (not the validator)
- Voting power cannot be transferred or delegated separately from staking
Emergency Proposals
In emergency situations (critical security vulnerabilities, market manipulation), the GX multisig can submit expedited proposals:
| Parameter | Emergency Value |
|---|---|
| Discussion Period | 0 (waived) |
| Voting Period | 24 hours |
| Quorum | 5% |
| Timelock | 1 hour |
Emergency proposals are limited to security-critical actions and require 4/7 multisig approval to initiate.
Governance Scope
The following parameters are controlled by governance:
| Category | Governable Parameters |
|---|---|
| Markets | New market listings, market suspensions, delisting |
| Fees | Maker/taker rates, fee distribution splits, builder code rates |
| Risk | Max leverage per market, margin requirements, liquidation parameters |
| Treasury | Fund allocation, grant programs, buybacks (20% of all trading fees flow to DAO treasury) |
| Staking | Reward rates, unstaking cooldown, fee discount tiers |
| Validators | Active set size, minimum stake, slashing parameters |
DAO Treasury Funding
Under the hybrid fee model, 20% of all trading fees are directed to the DAO-governed protocol treasury. This creates a self-sustaining funding mechanism where governance participants control a continuously growing pool of resources. At $1B daily volume, this translates to approximately $32.9M per year flowing into the treasury for governance-directed spending.
The remaining fee distribution is: 40% to GX stakers (USDC real yield), 20% to buy & burn GX (deflationary), and 20% to the insurance fund.