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Governance Process Overview

Sharpe Protocol Governance Model

Sharpe Protocol, governed by its native token SHARPE, envisions a community-centric governance model, where key parameters of the Sharpe Labs are dictated by the collective decisions of the SHARPE token holders. The governance mechanism is tailored to facilitate a decentralized, transparent, and community-driven ecosystem.

Governance Proposals

Governance proposals, abbreviated as SIP (Sharpe Improvement Proposals), are the primary method through which changes, enhancements, or amendments are introduced within the protocol. These proposals are categorized into three main domains:
  1. 1.
    Protocol Amendments: These proposals necessitate on-chain actions and may include items such as treasury allocations, fee adjustments, and other protocol parameters.
  2. 2.
    Operational Procedures: These encompass changes to operational procedures, guidelines, or modifications to the governance model itself.
  3. 3.
    Informational Proposals: These are aimed at providing general guidelines or vital information to the community for better protocol understanding and engagement.

Governance Process

The process of governance is structured into distinct phases to ensure thorough deliberation, community engagement, and well-informed decision-making.

Phase 1 - Research Forum

All proposals are initially published on the Research Forum, inviting community feedback and discussions. This phase helps refine the proposals based on community insights.
  • Discussion Timeframe: Minimum 7 days
  • Forum: Sharpe Research Forum
Phase 2 - Snapshot
Post refinement, proposals move to the Snapshot phase, where delegated community members can submit proposals for a 14-day voting period. Successful proposals with adequate support advance to the on-chain voting stage.
  • Proposal Threshold: 10,000 SHARPE
  • Voting Delay: 2 days
  • Voting Period: 14 days
  • Quorum: 1M SHARPE
  • Forum: Sharpe Snapshot
Phase 3 - Tally
Proposals that garner sufficient support transition to the Tally phase, where on-chain proposals are created, followed by a 14-day voting period. Successful proposals are then queued for execution.
  • Proposal Threshold: 1M SHARPE
  • Voting Delay: 1 block
  • Quorum: 5M SHARPE
  • Voting Period: 14 days
  • Execution Delay: 2 days
  • Forum: Sharpe Tally

Governance Powers

The community, through the governance structure, has the ability to control key protocol parameters including:
  • Adjusting fee structures within Sharpe’s platforms.
  • Issuing treasury grants for community initiatives or development projects.
  • Modifying governance parameters like proposal thresholds, voting periods, and quorum requirements.

Committees

To ensure a streamlined operation, specific functions of the DAO are overseen by committees. These committees work towards progressively transferring their functions to the broader governance over time.
  1. 1.
    Safety Committee: Ensures that SIPs adhere to the outlined governance process, blocking any proposals that bypass the established process.
  2. 2.
    Incentive Committee: Manages incentive schemes for Sharpe users, utilizing a portion of the Genesis Supply for incentive programs, and possibly loaning out part of the budget to provide market liquidity for SHARPE.

Voting Power and Proposal Rights

The number of SHARPE tokens held or delegated to a user dictates their voting power. Significant holders or delegators may have the right to propose governance actions, ensuring active and invested community members have a say in the protocol's direction.
This governance model encapsulates a balanced approach, ensuring the Sharpe ecosystem remains agile, community-centric, and poised for continuous innovation and growth. The model is designed to evolve over time with continuous refinements based on community feedback and the protocol’s growth, nurturing a dynamic, robust, and community-driven governance mechanism.
Last modified 1mo ago