Governance Model

Here's a merged and updated Governance Model section that better reflects your vision:


At MoonCat, we believe that true decentralization and governance should enhance the value of the core token rather than dilute it by introducing additional governance tokens. MCT will serve as the sole token driving governance and decision-making within the ecosystem.

Core Governance Principles

Stake-Weighted Voting Voting power is determined by staked MCT, combining both 7-day and 1-year stakes. This ensures those most committed to the protocol have proportional influence over its direction.

AI-Enhanced Decision Making Our governance system uniquely integrates AI as an analytical tool that operates within community-defined guardrails. AI enhances rather than replaces human judgment, creating a bridge between technological efficiency and collective wisdom.

Value Alignment All governance decisions from staking rewards to treasury allocations are designed to strengthen MCT's value and ensure decisions benefit both the community and the protocol.

How Governance Works

Proposal Process

  1. Submission: MCT holders meeting the proposal threshold can submit governance proposals

  2. AI Analysis: Our AI system analyzes proposals across multiple dimensions:

    • Security impact assessment

    • Economic feasibility evaluation

    • Community alignment scoring

    • Technical implementation clarity

  3. Community Discussion: AI insights guide informed discussion without replacing human judgment

  4. Voting: Staked MCT holders vote on proposals

  5. Execution: Passed proposals execute through timelock contracts after a 48-hour delay

AI's Role in Governance

Current Implementation (Phase 1)

  • Analyzes proposals to provide risk assessments and insights

  • Translates complex technical proposals into accessible language

  • Offers data-driven recommendations while maintaining transparency

  • All AI suggestions remain advisory—final decisions rest with the community

Future Vision

  • Enhanced pattern recognition for identifying beneficial proposals

  • Automated execution of routine, pre-approved governance tasks

  • Continuous learning from governance outcomes to improve recommendations

  • Always operating within community-established parameters

Governance Scope

The community governs critical protocol functions including:

  • Staking reward rates (dynamic APR adjustments)

  • LP optimization parameters and fee structures

  • Treasury allocations and strategic partnerships

  • Protocol upgrades and new feature implementations

Security & Execution

All governance decisions execute through our multi-layered security architecture:

  • Timelock Controllers: 48-hour delay for all critical operations

  • Gnosis Safe Integration: Multi-signature requirements for execution

  • Role-Based Access: Granular permissions for different operations

  • Emergency Mechanisms: Community-controlled pause functions for protection

By anchoring governance in MCT and enhancing it with AI analysis, we create a system where technology serves human interests, ensuring that all decisions made benefit both the community and the project's long-term success.

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