Governance
Who decides what — and what nobody can decide.
The protocol’s parameters are governed by holders themselves. A vote is cast by burning tokens; their collateral stays in the pool for everyone who remains. No protocol role can alter the governed values against holders’ will, admit a collateral currency contrary to their decision, or halt the return of funds to participants.
Subject to a vote
- The fees that flow into the shared pool
- The depth of backing protection
- How funds are returned on redemption
- The set of collateral currencies: admission, suspension, migration
- How fast the cost of entry rises in Phase 2
- How it is regulated: automatically or manually
- When Phase 1 ends
What no role can do
- Alter the mint price, the ladder of growth rates, or the rules for accruing and distributing backing.
- Introduce a fee on position redemption.
- Admit a collateral currency against the outcome of a vote.
- Halt or defer the return of funds to participants.
How the regulator decides The regulator is not a state body and not a person, but a rule written into the contract that sets the growth rate of the mint price. Holders can switch it off and back on by vote.
The volume of issuance is regulated differently — not by vote but by participants’ own decisions. The protocol issues no tokens at its own discretion: every token is created by whoever deposited collateral and disappears when someone reclaims it. If supply proves excessive and the price stops rising, participants redeem; when the coin is in demand, they create new positions. The money supply follows market need directly, without an intermediary deciding on others’ behalf.
The contract is immutable: once deployed on Arbitrum One, it has no upgrade path and no wind-up procedure. What is voted on is the set of parameters above, and nothing else.