Governance

The HYRO Protocol governance system is currently under development. While the protocol operates under multisig administrative control, a comprehensive token-based governance system is planned for future phases.

Current Governance Structure

Multisig Administrative Control The protocol currently operates under multisig administrative control for:

• Challenge template creation and modification
• Policy program updates and security patches
• Emergency protocol pauses and parameter overrides
• Oracle configuration and management

Planned Token-Based Governance A decentralized governance system powered by the $HYRO token is planned for Phase 2, enabling stakeholders to participate in protocol decision-making and development.

Voting Mechanism

Vote Weight Calculation

voteWeight = baseVotes * stakingMultiplier * voteLockMultiplier

where:

baseVotes = heldTokens

stakingMultiplier = 1.0 to 2.0 (based on stake duration)

voteLockMultiplier = 1.0 to 3.0 (based on vote lock time)

Staking Multipliers

Staking Duration	Multiplier
Base (unstaked)	1.0x
1 month	1.2x
3 months	1.5x
6 months	1.8x
12 months	2.0x

Vote Lock Multipliers

Lock Period	Multiplier
No lock	1.0x
1 month	1.5x
3 months	2.0x
6 months	2.5x
12 months	3.0x

Proposal Types

Protocol Parameters

1. Fee structures

2. Risk limits

3. Oracle configurations

4. Challenge templates

System Upgrades

5. Smart contract updates

6. Integration additions

7. Security enhancements

8. Feature implementations

Treasury Actions

9. Fund allocations

10. Investment decisions

11. Reward distributions

12. Emergency funds

Submission Requirements

• Minimum 100,000 $HYRO tokens staked

• 14-day cool-down between proposals

• Detailed specification document

• Testing results (for technical changes)

Voting Timeline

Submission → Review: 72 hours → Voting: 7 days → Timelock: 48 hours → Implementation

Quorum Requirements

Proposal Type	Minimum Participation	Pass Threshold
Parameter	10% of total supply	>50%
System	20% of total supply	>66%
Treasury	15% of total supply	>60%
Emergency	25% of total supply	>75%

Emergency Governance

Emergency Actions: Protocol pause, parameter overrides, fund freezing, oracle suspension

Emergency Committee: 7 elected members with 48-hour response requirement. All decisions are multisignature approvable with 5/7 consensus needed.

Execution Process:
Emergency signal raised

1. Committee verification

2. Action implementation

3. Community notification

4. Post-action review

Implementation Status

Current Status: The governance system described above is planned for future implementation. The protocol currently operates under multisig administrative control while the token-based governance system is developed.

Timeline: Token-based governance is planned for Phase 2 of protocol development, expected to be implemented after the completion of core protocol features and manager registry system.

Note: This documentation reflects the planned governance structure. Parameters and processes may be modified through governance proposals as the protocol evolves.