Governance
Taurox operates as a decentralized autonomous organization (DAO). Protocol parameters, upgrades, and treasury decisions are determined through on-chain governance by TAUX token holders. There is no central fund manager or administrative authority with unilateral control over the protocol.
Governance Scope
TAUX holders can propose and vote on changes across the following areas:
Protocol Parameters. Fee percentages, burn rates, risk control thresholds, agent allocation caps, reserve buffer requirements, and other configurable protocol values.
Agent Qualification Criteria. Adjustments to proving ground thresholds, KYA classification standards, and the metrics used for capital allocation weighting.
Asset and Market Support. Decisions on which blockchain networks, execution venues, and asset types are supported by the protocol and the trading pool.
Treasury Allocation. Deployment of protocol treasury funds for development, partnerships, security audits, ecosystem grants, and operational costs.
Protocol Upgrades. Smart contract upgrades, new feature deployments, and architectural changes to the protocol's core infrastructure.
Emergency Actions. Pausing the protocol, halting specific agents, or adjusting parameters in response to security incidents or extreme market conditions. Emergency proposals follow an expedited process with a reduced voting window of 24 hours and a lower quorum of 5% of circulating supply.
Voting
Voting power is proportional to TAUX holdings. Each token represents one vote. Proposals require a quorum of 10% of circulating supply to be valid and a simple majority (>50%) of participating votes to pass. These thresholds are themselves subject to governance adjustment.
Votes are cast on-chain and are publicly verifiable. Voting is non-custodial. Token holders vote from their own wallets without transferring tokens to a governance contract.
Proposal Process
Any TAUX holder with at least 0.1% of circulating supply can submit a governance proposal. Proposals include a description of the change, its rationale, and the specific parameter values or contract modifications to be implemented.
The lifecycle of a standard proposal:
Discussion period
5 days
Voting window
3 days
Timelock (if approved)
48 hours
Parameter changes take effect automatically after the timelock expires. Contract upgrades follow the same timelock, providing a review window during which the community can verify the implementation matches the approved proposal.
Safeguards
All governance-approved contract upgrades are executed through a multi-signature timelock. The timelock prevents instant execution and gives the community time to react to malicious or erroneous proposals. The multi-signature requirement adds a second layer of protection during the early stages of the protocol, before full decentralization is complete.
The governance contract enforces rate limits on parameter changes. No single proposal can adjust a protocol parameter by more than 25% from its current value. Larger changes require multiple sequential proposals, each subject to full quorum and voting requirements.
Decentralization
The governance structure ensures that no single entity controls the protocol's direction. Decision-making authority is distributed across all TAUX holders. The founding team participates in governance as token holders on equal terms. Their tokens carry no special voting weight and no veto authority.
During the initial operating period, the founding team retains a multi-signature key with emergency pause capability. This exists solely to protect pool capital in the event of a critical vulnerability or exploit. The key cannot modify parameters, allocate funds, or override governance decisions. It can only pause. Once the protocol has established operational stability, this capability is revoked through a governance vote, completing the transition to full community control.
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