Governance Model

Liquid Democracy: A Flexible System for Representation

Dextr integrates Aragon as its governance client, utilizing DXTR tokens for voting. Various voting mechanisms, such as simple voting, majority voting, and super-majority voting, will be employed depending on the proposal's nature. These mechanisms will include quorum requirements and proposal submission eligibility criteria.

The goal is to establish a liquid democracy system where users are incentivized to vote or delegate their votes. The core thesis of Dextr's governance is to create a balanced and adaptable framework that allows for community-driven updates while maintaining critical protocol constants to ensure stability and security. This framework encourages active participation and representation within the Dextr ecosystem.

Dextr's governance thesis revolves around two main components:

1. Protocol Variables: These are aspects of the protocol that can be updated through governance proposals and voting. By allowing these variables to be adjustable, Dextr ensures that the protocol can evolve and adapt to new market conditions, technological advancements, and community needs.

2. Protocol Constants: These are immutable elements of the protocol that cannot be changed through governance. Maintaining these constants ensures the fundamental integrity and security of the protocol.

Some of the protocol constants are:

USD/REP Earning Rate	1 USD = 1 REP
1 Epoch	30 Days
Protocol Fee	0.1%
Protocol Fee Allocation to Foundation Pool	35% of Total Protocol Fee
Minimum REP Points for Proposal Submission	1 million REP
Voting Period	1 Epoch
REP point Multiplier	See

As Dextr journeys into progressive decentralization, a detailed governance paper will be published before governance starts. This paper will outline the governance framework, voting mechanisms, proposal submission guidelines, and the distinction between protocol variables and constants. It will serve as a comprehensive guide for participants, ensuring transparency and clarity as the community takes an active role in the protocol's development and management.