Governance Structure: Controlling the Strategy Layer

LiquidBots governance is designed for precision - not chaos.

The goal isn’t to turn every user into a voter. It’s to ensure that those with long-term alignment — protocol stakers, strategists, builders, and liquidity backers — have real influence over how the execution layer evolves.


🔑 Governance Token

  • Token: esLBOT (escrowed LiquidBots)

  • Voting Rights: Only esLBOT is eligible for on-chain governance

  • Delegation: Supported (delegate to strategist communities, technical councils, protocol owned management, etc.)

What Governance Controls

Domain
Controlled by DAO?
Description

Protocol Fees

Possible governance in the future once revenue milestones are achieved

Set bot fee %, vault performance fee, strategist cut

Emission Policies

Control emissions into staking, vaults, incentives

Treasury Allocations

Governed by the protocol exclusively

Grants, partnerships, strategic capital usage

New Strategy Approval

Enable/disable new modules (e.g., copy vaults, vault logic)

LBOT Accumulation Mechanics

Within reasonable means & adherence to sustainability

Buyback frequency, method (TWAP vs OTC)

Insurance Thresholds

Coverage rules, max payouts, risk caps

Staking Tier Benefits

Rebates, vault access levels, yield scaling rules

LiquidBots governance is designed for precision - not chaos.

The goal isn’t to turn every user into a voter. It’s to ensure that those with long-term alignment - protocol stakers, strategists, builders, and liquidity backers - have real influence over how the execution layer evolves.


Governance Flow (DAO Evolution)

Phase
Model
Controls
Notes

v0 – Pre-Launch

Core Multisig

Treasury, fees, emissions

Core team-led, limited to emergency powers

v1 – Post-TGE DAO

Tokenholder DAO

All protocol-level settings

DAO Treasury delegated to multisig with on-chain voting

v2 – Staking-Gated DAO

esLBOT Governance

Full control of DAO Treasury only

Only high tier locked stakers control capital, emission, strategy rights

v1 governance will be introduced within 6-12 months post-TGE, using tools like Tally or Snapshot with token-gated contracts on destination chain (HyperEVM).

Voting Power Design

  • 1 esLBOT = 1 vote

  • Non-transferable → must be earned through staking

  • Boost multipliers for:

    • Long-term vesters

    • Active strategists

    • Delegated protocol operators

Safeguards & Risk Controls

  • Emergency multisig pause available during v0 and early v1

  • Upgradeable strategy contracts gated behind DAO approval

  • No admin key for vault withdrawals, emissions, or token minting

LiquidBots governance doesn’t exist for vanity — it exists to determine where capital flows, what earns yield, and how execution gets priced. The right hands should hold the controls.

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