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JustLend DAO Governance
The JustLend DAO introduces a formal path for the decentralization of the JustLend protocol and the autonomy of the community. JustLend DAO promotes consensus among all participants in the JustLend ecosystem through governance mechanisms and economic incentives. The functions of the protocol and the JST token are the core security elements of the JustLend protocol.
Governance mechanisms in decentralized protocols stem from the interplay of participation, incentives, self-regulation, and policy management within the community, all of which adapt to and coexist with the market. JustLend DAO manages on-chain through proposals so that the protocol can achieve self-operation, self-governance, and self-evolution according to pre-set rules through intelligent management and token economic incentives without third-party intervention, and then achieve maximum efficiency and value transfer.
As an important incentive method in the governance process of JustLend DAO, JST digitizes and tokenizes various elements in the organization, so as to fully integrate monetary capital, human capital, and other element capital to better stimulate the efficiency of the organization.
The goal of the JST economy is to achieve the virtuous and long-term development of the entire JustLend DAO ecosystem, allowing stakeholders and investors to profit under a more secure agreement. JST holders are responsible for the protocol and ecosystem while contributing to the protocol with practical actions, usually in the form of technical integration, such as DeFi front-end integration, or in the form of financial investment, such as liquidity providers. These all contribute considerably to protocol execution, security, and functionality.
The JustLend DAO provides for trust among stakeholders such as JST token holders, voting delegates, market managers, liquidity providers, and integrators, to name a few. Our liquidity-based governance creates economic incentives that keep the voting pool active, while the voting pool grows as new JustLend participants join.
The JustLend DAO was established to facilitate the development and long-term governance of the JustLend DAO protocol. The goal is to create a future-proof governance framework that relies on system incentives and multi-level governance to create an effective balance that stimulates long-term growth and continuous optimization of the protocol.
JustLend DAO governance is mainly composed of JST tokens, the governance module (GovernorAlpha), and Timelock. Together, these contracts allow the community to propose, vote, and implement changes through the governance functions of jToken or the Comptroller. Proposals can modify system parameters, add new markets, or add entirely new features to the protocol, etc.
The governance is first discussed in the JustLend DAO forum. If there is no contentious, then it is conducted through voting. Any users who hold more than 200 million JST can initiate a proposal on the platform, and other users can participate in the vote. If and only if the number of votes in favor of the proposal exceeds the number of negative votes and meanwhile exceeds 600 million, the proposal can be passed and implemented two days later.
JST tokens enable holders to collectively act as managers of the protocol, enabling them to vote and propose. The process of submitting a proposal and voting is as shown below (before entering the lock phase, you can cancel the created proposal at any time by proposal)
- 1.JST holders call governance contracts to create proposals. After a proposal is successfully created, it will enter a 2-day review period. Voting rights are recorded and voting begins after the review period.
- 2.JST holders get votes and choose to support or oppose the proposal according to the content. One JST one vote. The voting period is 3 days.
- 3.After the voting is over (the voting deadline is reached), the governance contract will judge whether the proposal is passed or not based on the number of votes. If the vote is not passed, this proposal will end, if passed, go to step 4.
- 4.If the proposal is passed, the proposal will enter a lock-up period of 48 hours. After the lock-up period ends, the proposal will be in a pending state, and the proposal will take effect immediately after the execution.
Taken together, in general, a full proposal will take at least a week.