Governance Process

The CosmBank protocol follows a three-phase governance process — from proposal submission to voting and on-chain execution.

(1) Proposal Submission

• Any veCSM holder can submit a governance proposal, provided they meet the minimum voting power threshold.

• Proposals may include:

  • Parameter adjustments (e.g., interest rates, collateral ratios)

  • Module upgrades (e.g., new lending pools or strategies)

  • Treasury allocations (e.g., DAO fund usage, LP incentives)

Proposal templates and thresholds are defined by governance and may evolve over time.

---

(2) Voting Phase

• Voting power is calculated as 1 veCSM = 1 vote.

• The default voting period lasts 5–7 days.

• A proposal is passed if it meets:

  • Quorum: Minimum total voting participation required

  • Majority Approval: >50% of votes must be in favor

All voting is recorded on-chain and cannot be modified after submission.

---

(3) Proposal Execution

• Approved proposals are executed by:

  • The Governor Alpha contract, or

  • A 4-of-7 multisig wallet, depending on proposal type

• Emergency authority: In urgent cases (e.g., smart contract vulnerabilities), the core team may pause the protocol or apply critical patches via multisig — subject to community transparency reports.

CosmBank governance balances decentralization with operational safety — allowing permissionless upgrades while retaining emergency response capacity.