Governance Framework
Zetarium governance mechanisms and participation guide
Document Version: 1.0
Last Updated: January 2026
MiCA-Aligned Disclosure
Overview
Zetarium is designed to progressively transition toward decentralised governance. This framework outlines the governance mechanisms, participation requirements, and decision-making processes.
Important: Governance participation does not imply managerial control or ownership of the protocol.
Governance Scope
$ZET token holders can participate in governance on the following categories:
| Category | Examples |
|---|---|
| Protocol Parameters | Fee rates, collateral requirements, margin ratios |
| Fee Structure | Trading fees, platform fees, revenue distribution |
| Treasury Allocation | Development grants, marketing budgets, partnerships |
| Feature Prioritisation | New products, integrations, roadmap items |
| Risk Parameters | Liquidation thresholds, oracle settings |
Governance Mechanisms
Proposal Lifecycle
| Stage | Description | Duration |
|---|---|---|
| Discussion | Community discussion on forums | 7 days minimum |
| Draft Proposal | Formal proposal submission | 3 days |
| Voting Period | Token holder voting | 5 days |
| Timelock | Implementation delay | 48 hours |
| Execution | On-chain implementation | Immediate |
Proposal Types
| Type | Quorum Required | Approval Threshold |
|---|---|---|
| Parameter Changes | 5% of supply | >50% approval |
| Treasury Spending | 10% of supply | >60% approval |
| Protocol Upgrades | 15% of supply | >66% approval |
| Emergency Actions | 20% of supply | >75% approval |
Voting Rights
Eligibility
| Requirement | Details |
|---|---|
| Token Holding | Must hold $ZET tokens |
| Snapshot | Holdings recorded at proposal start |
| Delegation | Vote power can be delegated |
Vote Weight
Vote weight is proportional to $ZET token holdings:
- 1 $ZET = 1 vote
- Delegated votes count towards delegate's vote power
- Staked tokens retain voting rights
Progressive Decentralisation
Zetarium follows a staged approach to decentralisation:
Phase 1: Foundation (Current)
| Aspect | Control |
|---|---|
| Protocol Parameters | Multi-sig controlled |
| Treasury | Multi-sig controlled |
| Upgrades | Core team approval |
| Emergency Actions | Core team response |
Phase 2: Limited Governance (Q2 2026)
| Aspect | Control |
|---|---|
| Fee Parameters | Token holder voting |
| Treasury Grants | Token holder proposals |
| Feature Requests | Community input |
| Emergency Actions | Multi-sig + governance |
Phase 3: Full Governance (Q4 2026)
| Aspect | Control |
|---|---|
| All Parameters | DAO controlled |
| Treasury | DAO controlled |
| Upgrades | DAO approval required |
| Emergency Actions | DAO emergency council |
Treasury Governance
Treasury Composition
| Source | Allocation |
|---|---|
| Protocol Revenue | 30% to treasury |
| Token Allocation | 21% treasury reserve |
| Partnership Funds | Strategic allocations |
Spending Categories
| Category | Description |
|---|---|
| Development | Protocol development, audits, infrastructure |
| Marketing | Community growth, partnerships, awareness |
| Grants | Ecosystem development, contributor rewards |
| Operations | Legal, compliance, operational costs |
| Emergency | Unforeseen circumstances, security responses |
Security Measures
Timelock
All governance actions are subject to a timelock delay:
| Action Type | Delay |
|---|---|
| Parameter Changes | 24 hours |
| Treasury Transfers | 48 hours |
| Protocol Upgrades | 72 hours |
Multi-Signature
Critical functions require multi-signature approval:
| Action | Signers Required |
|---|---|
| Emergency Pause | 2 of 5 |
| Parameter Override | 3 of 5 |
| Upgrade Execution | 4 of 5 |
Guardian Role
A Guardian multi-sig can:
- Pause protocol in emergencies
- Veto malicious proposals
- Execute emergency actions
Guardian powers are time-limited and subject to governance sunset.
Governance Participation
How to Participate
| Step | Action |
|---|---|
| 1 | Acquire and hold $ZET tokens |
| 2 | Connect wallet to governance portal |
| 3 | Review active proposals |
| 4 | Cast votes or delegate |
| 5 | Monitor proposal outcomes |
Delegation
Token holders can delegate their voting power:
- Delegation does not transfer token ownership
- Delegated votes can be reclaimed at any time
- Delegates are responsible for informed voting
Limitations
Governance does not include:
| Excluded | Reason |
|---|---|
| User Funds Access | Non-custodial protocol |
| Individual Trade Decisions | Autonomous user actions |
| Core Contract Logic | Immutable by design |
| Retroactive Changes | Forward-looking only |
Disclaimer
MiCA Compliance Note: Governance participation provides utility rights within the protocol but does not constitute ownership, equity, or managerial control. Token holders are not shareholders or partners of any legal entity.
Resources
| Resource | Link |
|---|---|
| Governance Portal | [Coming Q2 2026] |
| Documentation | docs.zetarium.world |
| Forum | [Coming Q2 2026] |
| Snapshot | [Coming Q2 2026] |
Governance framework is subject to evolution based on community input and regulatory requirements.