Governance Framework
Ledgity Yield is governed through a hybrid structure that combines regulated financial oversight with decentralized, on-chain participation. This ensures:
Legal and operational continuity
Transparent economic alignment
Community-driven control of protocol parameters
Governance Structure
The protocol operates across three coordinated layers:
Legal & Compliance
Ledgity SAS (PSAN-registered)
Regulatory obligations, onboarding, custody workflows, development & operations
RWA Portfolio Management
SARR Fund (Luxembourg-regulated)
Allocation of fiat collateral into short-duration, cash-flow-generating RWA strategies
Decentralized Governance
Ledgity DAO (veLDY holders)
Controls protocol parameters, performance fee routing, and strategic direction
This separation allows Ledgity to merge institutional-grade asset management with permissionless on-chain governance.
Token Governance (veLDY Model)
Protocol governance is powered by the $LDY token and its vote-escrowed representation veLDY, issued as a veNFT when tokens are locked.
Lock LDY for a chosen duration
Receive veNFT containing veLDY voting power
Longer lock duration
Higher voting weight + higher share of reward distributions
Hold veLDY
Participate in DAO governance and receive real yield distributions
veLDY holders can:
Vote on governance proposals (Snapshot)
Influence protocol yield mechanics and treasury usage
Receive LDY rewards from real-yield buybacks
Access boosted vaults & priority features
Submit proposals (threshold: 10,000 veLDY)
Revenue Allocation and Distribution
Protocol revenues flow through on-chain smart contracts. They originate from:
Performance fees on RWA yield
Early withdrawal fees (if applicable)
Integration and partnership incentives
Institutional vault servicing agreements
Distribution Model:
veLDY Community Pool
80%
Distributed to LDY stakers as real yield
veLDY Council Pool
20%
Distributed to Council stakers to compensate execution & oversight
There are no emissions-based inflation rewards — distributions come from actual economic yield generated by the RWA portfolio.
Operational Sustainability (Ledgity SAS)
Maintaining a regulated RWA yield protocol carries fixed structural costs:
PSAN regulatory compliance and reporting
KYC/KYB onboarding and AML monitoring
Custody + settlement infrastructure
External audits and legal supervision
Product development and security operations
Institutional account management
These are required to ensure continuity and legal security.
To support this, a baseline operational budget is recognized:
Up to €10M
~€750,000
Initial investor + revenues (Setup fees + service fees + OTC)
€10M–€50M
~€1,000,000
Share of DAO performance fees (governance-approved)
Above €50M
Scales proportionally (≈1–2%)
Combination of DAO revenue + institutional fees
Governance Safeguard
The DAO may adjust this operational contribution only if an alternative sustainability plan is approved.
Changes require:
⅔ supermajority DAO vote
Council validation to ensure operational continuity
This prevents governance attacks that could jeopardize regulatory compliance or investor protection.
Governance Procedures (LIPs)
Governance decisions follow the Ledgity Improvement Proposal (LIP) lifecycle:
Discussion
Open debate on forum or Discord
Snapshot Vote
veLDY holders vote on proposal parameters (quorum 5%)
Execution
Council implements approved actions via multisig (⅔ signatures required)
Major economic changes (e.g., performance fee adjustments) require supermajority approval.
Council Responsibilities
The Council is the operational execution and protocol risk oversight layer. It cannot override DAO decisions — it executes them.
Responsibilities:
Execute governance-approved parameter changes
Monitor RWA portfolio repayments and liquidity buffer health
Maintain operational security and protocol stability
Coordinate incident response when predefined conditions are met
Publish periodic reports for transparency
Council Membership Requirement
Stake ≥ 500,000 LDY in the Council Pool
Ensures economic alignment and responsibility
Council incentives scale only when the protocol performs, aligning execution with sustainability.
Transparency & Reporting
Ledgity commits to real-time and verifiable transparency through:
Public dashboards (Dune, DeFiLlama, TokenTerminal)
Smart contract audit publication and open-source repositories
Quarterly governance & financial performance reporting
Clear separation between on-chain revenue, off-chain treasury, and corporate operations
No hidden accounts, no opaque yield sources.
Summary
Ledgity Governance ensures:
Regulatory Compliance
Institutional trust and legal stability
Decentralized Decision-Making
Community ownership of protocol evolution
Real Yield Distribution
Value accrues to long-term participants
Operational Sustainability
Protocol remains safe, scalable, and durable
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