Tectonic protocol will begin with centralized control of the key decisions in the protocol (e.g., interest rates, collateralization ratio, token allocation, etc.) Such decisions will be made by the Tectonic team, in consultation with the community. Over time, Tectonic aims to transition the governance process fully to community and stakeholders.
At such time in the future, anybody holding a to-be-determined minimum threshold of TONIC token will be required to firstly bring forth, then vote on, proposals (Tectonic Improvement Proposals/TIP) that would affect key parameters such as economics, security and development of the protocol.
Examples of parameters that could be voted on:
- Interest Rate Model
- Reserve Factor
- The addition of assets that meet the risk requirements of the protocol
- Risk parameters for overcollateralization and liquidation
- Changes to the Liquidity Mining Program to adjust incentives depending on market conditions
- Protocol Treasury Control
- Buyback and Burn
- New LP Listing