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.

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Lifecycle Overview

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

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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.

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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.

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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.

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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