Governance Framework
Overview
Mynt (USDm) will launch under a governance-minimized framework, emphasizing security, transparency, and user trust. This approach avoids premature reliance on complex DAO structures and minimizes attack vectors in the early stages of the protocol’s lifecycle.
Instead of community-based voting at launch, critical parameters and upgrades will be managed by a secure multisig controlled by reputable actors aligned with the ecosystem.
7.1 Governance-Minimized at Launch
At genesis, governance is limited to essential control mechanisms, including:
• Risk Parameters
• Loan-to-Value ratios (LTV)
• Liquidation thresholds
• Stability fees
• Debt ceilings
• Collateral Onboarding
• Adding new collateral types
• Setting initial parameters for each
• Protocol Upgrades
• Bug fixes, security patches
• Integration with new PoL strategies or oracles
• Emergency Controls
• Circuit breakers or vault freezes in case of oracle failure, price manipulation, or smart contract exploits
7.2 Multisig Configuration
The protocol will be governed by a Gnosis Safe-style multisig wallet with the following setup (example):
Role
Description
3-of-5 or 4-of-7 threshold
Approvals needed for any upgrade or parameter change
Members
Trusted actors including Monad contributors, core engineers, and external DeFi security advisors
Transparency Tools
All proposals, votes, and parameter changes will be broadcast and viewable on-chain and optionally logged via a public governance UI
7.3 Future Governance Roadmap
As the protocol matures and adoption increases, a transition to community governance may occur. This could involve:
• Launching a native governance token (not USDm)
• Introducing a voting module for decentralized decision-making
• Delegation models to reduce voter fatigue
• Security council layers for time-sensitive decisions
This roadmap is designed to allow the protocol to evolve from security-first and founder-led to community-driven and trustless, similar to what Aave did with the GHO facilitator model.
7.4 Upgradeability and Admin Functions
Key smart contracts may be upgradeable via secure proxies, with strict access control via the multisig. The following functions may be restricted:
• Upgrading the core vault logic
• Modifying oracle sources or update intervals
• Adjusting protocol fees
• Pausing certain features (e.g., new minting during black swan events)
Upgradeability is designed to enable agility during the early stages and will be limited or removed entirely once the protocol reaches a sufficient decentralization threshold.
7.5 Transparency Commitments
Even without a full DAO at launch, Mynt commits to:
• Publishing all contract addresses, parameters, and transaction histories
• Hosting a public risk dashboard showing system status
• Issuing regular protocol updates and parameter change logs
This ensures users can audit the behavior of the multisig and the evolution of the protocol.
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