Overview

We value decentralized governance with high regard; however, we disagree with the common crypto route of building a protocol and launching a governance token where the sole utility of this token is to govern the other protocol. Oftentimes, this creates a situation where the economic security by the governance token does not exceed the TVL of the protocol, thus creating an attack vector. We have a legislative <> executive governance design:

• legislative:

  • The actor that proposes new governance additions, protocol upgrades, and operator onboarding is controlled by a multisig that is composed of members of the thunderhead team as well as other anonymous members of the community. When a new transaction is proposed, it must first be approved by this multisig before it gets put up to the protocol for voting

• executive

  • This is the system that approves proposals proposed by the legislative branch, and it is simply a weighted popular vote of stELX token holders. So, if a malicious proposal is created, the users of stELX have the complete power to veto the proposal. All proposals are considered optimistic and there must be a certain total number of tokens votes as well as a consensus percentage by the token holders to veto.