# Proposal Lifecycle

Ledgity governance is based on a **simple and transparent decision flow**:

→ **veLDY stakers** (the DAO) **vote on proposals**\
→ **Council stakers** execute the approved decisions on-chain\
→ The protocol updates automatically or through predefined smart contract actions

Governance is **stake-based**, permissionless, and recorded **fully on-chain**.

***

### **Lifecycle Overview**

```
1. Discussion → 2. Proposal → 3. Snapshot Vote → 4. Execution → 5. Reporting
```

***

### **1. Discussion (Forum / Discord / Community Call)**

Ideas, improvements, or parameter adjustments start with **open discussion**.

Examples of topics:

* Adjusting vault fees
* Updating collateral or strategy allocations
* Launching new network deployments
* Adding or modifying vaults
* Buyback or burn schedule adjustments

The goal of this stage is **consensus-building**, not decision-making.

> Anyone can start a proposal discussion.

***

### **2. Governance Proposal Draft (Formalization)**

Once the idea is clear, the proposer writes a **Governance Proposal** with:

| Field                                      | Description                                             |
| ------------------------------------------ | ------------------------------------------------------- |
| **Title**                                  | Clear name of the proposal                              |
| **Context / Motivation**                   | Why this change matters                                 |
| **Specification**                          | The exact change to be made                             |
| **Smart Contract Targets (if applicable)** | Parameter(s) / vault(s) / contract(s) impacted          |
| **Expected Outcome**                       | What should happen after execution                      |
| **Risks**                                  | Any operational, liquidity or governance considerations |

The proposal is shared publicly before voting.

***

### **3. Snapshot Vote (veLDY Holders Vote)**

The proposal is submitted to **Snapshot** for a weighted vote.

* Voting power = **veLDY balance** (not LDY)
* Each veNFT contributes voting weight according to its lock duration & stake size
* Voting is gasless and transparent

| Outcome          | Effect               |
| ---------------- | -------------------- |
| **Majority YES** | Proposal is approved |
| **Majority NO**  | Proposal is rejected |

> **veLDY stakers are the DAO. Their vote is final.**

***

### **4. Execution (Council On-Chain Actions)**

Once a proposal is approved:

* **Council stakers** (≥ 500,000 LDY) perform the on-chain execution steps
* Execution is **fully deterministic**: Council cannot modify the proposal
* If execution requires multiple steps, they are coordinated transparently