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Samurai Governance introduces a formalized path to the decentralization and autonomy of the Samurai Protocol. Covering governance mechanisms and incentives, it aims to share a vision of alignment between various participants within the Samurai ecosystem, protocol functionality and the xHNR token & nodes as a core element of the Samurai Protocol.
The underlying purpose and enhanced utility of the xHNR tokens is to share economics of, align incentives around, govern parameter changes and on-chain upgrades to the relevant smart contract systems. The xHNR governance token can thus effectively aid in determining the new software and amendments that the Samurai Protocol adopts and serve as a form of active stewardship of the Samurai protocol.
The First Commandment - Saisho Governance mechanisms in decentralized protocols stem from the interplay of community participation, incentives, self-regulation and policy management, all adjusted to live through and alongside the market.
The Second Commandment - Ni-Banme Samurai Governance consists of the proposition and decision-making process for the different risk parameter changes, improvements and incentives that constitute the policies, and upgrades to governance itself. All future decisions governing the protocol will be enacted through this procedure.
The Third Commandment - San-Ban The xHNR token empowers holders to collectively act as governors of the protocol by enabling them with the capability to vote and propose. xHNR governance tokens shall not be deemed as a pro rata claim on any of the protocol's PCV - protocol controlled value (i.e., governance tokens do not function as a stock in a trust or foundation).
The Fourth Commandment - Dai-Yon Samurai Governance is an exciting new evolution of on-chain governance, allowing unique features, rapid protocol upgrades via short time lock executors, and governance upgrades via long time lock executors. This ensures the protocol can rapidly adjust to changing market conditions, as well as upgrade core parts of the protocol as time goes on.
The Fifth Commandment - Banme Governance proposals experiencing a notably high engagement and participation, surpassing the quorum requirements by at least 100% and strongly favoring a particular voting option by over 70%, become inviolable and irrevocable, impervious to any future governance proposals, votes and attempts at overturning, voiding, nullifying, or removing them.
The protocol’s governance allows all xHNR tokenholders to chime in and contribute to the progression and development of the protocol and its ecosystem. It effectively aligns incentives among all xHNR tokenholders and gives them the power to steer the ship by providing a more immersive and inclusive experience. It ensures that tokenholders are effectively at the forefront of certain aspects of the protocol’s decision making. Furthermore, it allows the protocol to source innovative technological proposals and additions to its existing feature set, further bolstering its progression.
To learn more about the governance, what aspects of decision making it pertains to, and overall learn more about its functionality - please read here: