Governance

Current idea for governance and future plan

During the initial distribution phase and while some early key updates are being developed, control of the protocol will remain with the core development team.

Once the initially minted supply is fully in circulation, the scaling factor can be adjusted by the community. Depending on the range of opportunities that present themselves on the platform and the conditions of the space overall, it will be possible for the community to determine whether the CYCLE token will have a deflationary or inflationary policy. A scaling factor below 1 would scale down the distribution and produce a deflationary policy. Above 1 would do the opposite, scaling up the distribution and providing a reward boost through an inflationary policy.

These two values will be at the heart of directing the health and success of the protocol. All CYCLE token holders will be able to participate in frequent adjustment of these values.

The current vision and goal is to transfer the protocol to a Gnosis Safe and utilize their SnapSafe utility. This allows for the result of an off-chain vote to automatically execute the update on-chain without any central intermediary.

The scope of governance will initially be to determine the post distribution life of the protocol. Determining which vaults to add/remove and reward weighting will be part of the governed process as well.