Introducing Gyroscope's governance system. A system that recognizes the challenges of decentralization and mitigates the risks inherent in decentralized governance.

Too often, DeFi governance is an afterthought. DeFi protocols need to mitigate risks in their mechanisms and governance should be no different. Principled governance design is a must.

Gyroscope builds on these principles: - Minimization/automation: decentralized governance is inherently a slow process, shouldn't be an everyday affair - Multi-stakeholder: voices from different types of participants - Checks and balances: user protections against bad governance

Minimization/automation Gyroscope's stablecoin protocol is designed to be as automated as possible, leaving governance to the slow task of tuning meta-parameters of the automation. Action tiering allows different severity actions to have different scrutiny requirements

Gyroscope governance distributes voting power across several voting vaults - Founding member vault = early, provably unique community members - Councillor vault = experienced DeFi participants - LP shares vault - Associated DAOs vault - Governance token vault

This pluralistic approach provides a voice to all the participants in the system. From unique community members, and LPers directly exposed to the system (and the effects of governance decisions), to existing DAOs who build interconnecting products with Gyroscope.

Checks and balances on governance power - Conditional cashflows: governance doesn't have access to reserve yield unless the system remains healthy - Optimistic approval: users of the stablecoin have a built in ability to limit contract upgradeability

In addition, Gyroscope governance incorporates a novel emergency recovery mechanism. In the case of a governance smart contract failure, a fallback multisig has the ability to restart the governance system. This is secured by an optimistic approval timelock and veto process.

Gyroscope's governance design is inspired by the architecture in @delv_tech's Council Protocol and adds new voting vault types. Gyroscope and Council Protocol form complementary tools and together are pushing the boundary on the quality of DeFi governance design.

Gyroscope governance is also motivated by principle-agent models in corporate governance and adaptations of these models to DeFi, where legal protections are limited.

The first two voting vaults are now live. 1. The founding member vault = early, provably unique community members Holders of a Gyroscope founding member NFT can now claim voting power in this vault and delegate

2. Associated DAOs vault This voting vault currently grants governance voice to the DAOs of @Balancer, @AuraFinance, @Element_DAO, and @beethoven_x, who already build together with Gyroscope. And more may be added over time.

For additional information refer to: - the docs: - a blog post introducing the Founding Member Vault: Or get started on:

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