Governance
Governance defines and updates protocol parameters. All changes follow a change-control policy that ensures transparency and predictability.
Governance Scope
What Governance Controls
Governance can modify parameters that affect future operations. It cannot change terms of existing bond series after issuance.
What Governance Cannot Change
Terms of issued bond series (immutable at launch)
Settlement waterfalls for active series
Staker compensation formulas for active series
Historical on-chain records
Parameter Categories
Series Issuance Parameters
These parameters define how new bond series are structured.
Minimum sale size
Floor for sale to proceed
Maximum sale cap
Ceiling regardless of demand
Tenor limits
Allowed maturity ranges
Settlement rules
Waterfall and priority definitions
Warrant allocation
How warrants are distributed
Exercise rules
Warrant exercise mechanics
Reserved $MSTR mint rules
TWAP window, amount, earmark logic
USD Backstop Pool Parameters
Each USD bond series has pool-specific parameters.
Staking schedule
Open/close dates for USDT deposits
Required vs withdrawable rules
When stakers can withdraw
Pro-rata withdrawal mechanics
How withdrawals are allocated
Upfront reward share
Percentage of proceeds paid immediately
Upfront payout asset
BTC, USDT, or $MSTR
BTC make-whole policy
Source priority and caps
Treasury Parameters
These parameters govern the protocol treasury.
Reserve policy
Minimum BTC reserves to maintain
LP limits
Maximum exposure to liquidity provision
LP safety bands
Allowed range around oracle prices
Redemption trigger
Conditions that enable redemptions
Redemption size
Maximum redemption per period
Redemption cadence
Minimum time between redemptions
Oracle Parameters
These parameters configure price feeds and safety controls.
TWAP window
Duration for time-weighted averaging
Venue weights
Contribution of each price source
Staleness threshold
Maximum age for valid price data
Deviation threshold
Trigger for circuit breakers
Fee Parameters
Marketplace fees
Trading fee rates
Fee distribution
How fees flow to treasury
Change-Control Policy
Parameter changes follow a defined process:
Proposal: Change is proposed with rationale
Review period: Community can review and comment
Voting: Governance vote determines outcome
Timelock: Approved changes have a delay before activation
Execution: Changes take effect after timelock expires
Emergency changes: Critical security issues may follow an expedited process with shorter timelocks, subject to defined criteria.
Transparency
All governance activity is on-chain:
Proposals and rationales are published
Voting is transparent and verifiable
Parameter changes are logged with timestamps
Historical governance decisions are preserved
Anyone can audit the full history of governance actions and their effects on protocol parameters.
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