Governance Framework & Process

Amplified’s governance framework is designed to empower the community with structured, transparent decision-making while ensuring protocol security and efficiency.

The governance model includes a detailed proposal system, voting mechanisms, implementation security, and an economic sustainability model, all tailored to maintain protocol integrity and adaptability.

Proposal System

Amplified uses a structured, multi-step proposal system to evaluate and approve protocol changes. Each proposal type serves a distinct purpose in the decision-making process:

Proposal Types:

1. Temperature Check (Temp Check)

   • Purpose: To gather initial community feedback and gauge interest.

   • Duration: Minimum 5-day discussion period.

   • Benefits:

     • Low-stakes environment for open discussion.

     • Early identification of potential concerns.

     • Assessment of community sentiment.

     • Opportunity for proposal refinement based on feedback.

2. Amplified Request for Comment (ARC)

   • Purpose: To enable detailed proposal discussions and refinement.

   • Duration: Minimum 5-day review period.

   • Requirements:

     • Technical specifications.

     • Risk assessments.

     • Supporting data and impact analysis.

   • Benefits:

     • Enables thorough community review and technical validation.

     • Identifies risks and improves proposal quality.

3. Amplified Improvement Proposal (AIP)

   • Purpose: Final, actionable changes to the protocol.

   • Components:

     • Complete technical specifications, implementation plans, execution timelines, and risk mitigation strategies.

   • Significance:

     • AIP approvals are binding, leading to protocol-level changes, parameter adjustments, and strategy implementations.

4. Emergency Proposals

   • Purpose: To address urgent security or operational issues.

   • Characteristics:

     • Expedited process with higher approval thresholds.

     • Immediate action capability with enhanced security measures.

Voting Mechanics

Amplified’s voting system includes both off-chain and on-chain voting, allowing for efficient sentiment gathering and formal decision-making.

Voting Types:

1. Off-Chain Voting (Snapshot)

   • Purpose: Used in initial proposal stages to gauge community sentiment.

   • Duration: 3-day voting period.

   • Participation: Open to all veLLT holders.

   • Benefits:

     • Gas-free voting with broad participation.

     • Quick feedback and flexible polling options.

2. On-Chain Voting

   • Purpose: Required for formal governance decisions.

   • Security Delay: 1-day delay after proposal submission.

   • Duration: 3-day voting period.

   • Participation: Restricted to veLLT holders or their delegates, with voting power weighted by locked token amount and duration.

3. Quorum Requirements

   • Different proposal types have distinct quorum and approval requirements:

     • Strategy Rebalancing: 2% quorum, simple majority (>50%).

     • Protocol Updates: 5% quorum, supermajority (≥66%).

     • Protocol Whitelisting: 3% quorum, simple majority (>50%).

     • General Proposals: 1% quorum, simple majority (>50%).

Implementation Security

To protect the protocol, Amplified’s governance includes a multi-level security process for implementing approved proposals.

Timelock System:

The timelock system enforces mandatory waiting periods for protocol changes, providing additional layers of security.

1. Standard Changes

   • Duration: 2-day timelock.

   • Purpose: For regular protocol updates.

   • Security: Community review period with the option to cancel during the timelock.

2. High-Risk Changes

   • Duration: 5-day timelock.

   • Purpose: For major protocol modifications.

   • Security: Extended review period for enhanced scrutiny.

3. Emergency Actions

   • Duration: Variable, based on issue severity.

   • Purpose: Immediate response to critical issues.

   • Oversight: Monitored by an Emergency Council to ensure security.

Execution Process:

A rigorous process ensures secure implementation of approved changes:

1. Security Review

   • Includes audit verification, risk assessment, community feedback, and technical validation.

2. Implementation Steps

   • Timelock Initiation: Waiting period activation.

   • Security Confirmations: Final checks before execution.

   • Execution Monitoring: Oversees the change process.

   • Success Verification: Ensures implementation integrity.

Economic Sustainability Model

Amplified’s economic sustainability model governs all financial decisions through the proposal system, focusing on long-term stability and growth.

1. Revenue Generation

   • Collection from yield fees, protocol services, treasury management, and strategic investments.

2. Value Distribution

   • Allocation for protocol maintenance, development funding, community incentives, and security measures.

3. Long-Term Stability

   • Building reserves, managing risk, investing in growth, and adapting to market changes.