Proposal Lifecycle

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

veLDY stakers (the DAO) vote on proposalsCouncil 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

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