# Governance Framework & Process

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.