# Council Staker Privileges

The **Council** is the operational execution and risk oversight layer of the protocol.\
While **veLDY stakers (the DAO)** vote on governance proposals, the Council is responsible for **executing** decisions safely and transparently.

To participate, a member must **stake a minimum of 500,000 LDY** in the **Council Staking Pool**.\
This ensures that every Council participant has meaningful **economic alignment** with the protocol.

There is **no election**, **no appointment**, and **no revocation process**.\
**Council membership is permissionless**:\
→ **Stake ≥ 500,000 LDY → You are in the Council**\
→ **Unstake → You leave the Council**

***

### **Council Responsibilities**

| Area                             | Description                                                             |
| -------------------------------- | ----------------------------------------------------------------------- |
| **Execute Governance Decisions** | Apply on-chain parameter changes approved by veLDY votes                |
| **Risk & Liquidity Monitoring**  | Monitor RWA allocations, liquidity buffers, and performance indicators  |
| **Operational Security**         | Ensure stable system behavior and parameter integrity                   |
| **Incident Execution**           | Activate emergency safeguards if pre-programmed risk conditions are met |

> **veLDY decides.**\
> **Council executes.**\
> Governance outcomes **cannot** be overridden by the Council.

***

### **Incentive Structure**

Protocol performance fees are used to **buy LDY from the market**, then distributed:

| Allocation | Destination                    | Effect                         |
| ---------- | ------------------------------ | ------------------------------ |
| **80%**    | **veLDY Community Pool (DAO)** | Distributed to veLDY stakers   |
| **20%**    | **veLDY Council Pool**         | Distributed to Council stakers |

> **20% of protocol performance is automatically paid to DAO members** (veLDY stakers).


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