Chapter 10: Governance model

LQDTY is designed to operate as a decentralized, community-driven blockchain where governance decisions are made through transparent and secure voting mechanisms. The governance model ensures that token holders rather than centralized entities determine network upgrades, protocol improvements, and resource allocations.

This chapter outlines the governance structure, veLQDTY voting mechanism, proposal process, and treasury management that empower stakeholders to shape LQDTY's future.

10.1 Introduction to CommunityDriven Governance

Governance in blockchain ecosystems is crucial for decentralization and long-term sustainability. LQDTY implements an on-chain governance model, enabling token holders to propose and vote on protocol changes, funding allocations, and ecosystem enhancements.

Key Governance Objectives:

Decentralization: Decision-making authority is distributed among LQDTY token holders, ensuring no single entity controls the network.
Transparency: All governance votes and decisions are recorded on-chain, making governance processes fully auditable.
Security & Stability: Governance ensures that protocol updates, funding initiatives, and economic parameters maintain long-term blockchain stability.
Ecosystem Growth: The governance system funds developer grants, research initiatives, and dApp incentives to expand the LQDTY ecosystem.