# Governance

### Governance

RiskShield will adopt the DAO governance mechanism commonly deployed in DeFi projects, with $RSY as the governance token for voting and incentives. RiskShield DAO's governance principles include:&#x20;

* Placing the security of capital deposited by members in the RiskShield protocol as its top priority. The community shall decide how the capital is used, moved, invested, and/or any other fundamental changes that may be made to it;
* The day-to-day operations of RiskShield will continue to function without community involvement;&#x20;
* Encouraging maximum community participation in vital areas such as business design, product listing and delisting, adding and removing feature, technology development, and protocol updates.&#x20;
* In the event that community governance fails, there should be contingency plans in place as a safety net to protect RiskShield members.&#x20;

The governance framework will comprise of two approaches:&#x20;

* Community Voting: The community can vote for or against proposals.&#x20;
* Advisory Board: Consists of representation from the RiskShield team as well as 3rd-party independent advisors with technical, insurance, compliance, and other relevant expertise. The Advisory Board works as an oversight committee to set specific rules, review community proposals, and execute contingency plans when community voting fails.&#x20;

$RSYtokens represent member voting rights. A cap is placed on the voting power of each member so as to avoid the risk of having voting power concentrated in the hands of a few individuals. Voting outcomes are determined by quorum, majority voting, and voting weights. The governance process will generally be as follows:&#x20;

1. Proposal Raised: RiskShield members bring a proposal forward.&#x20;
2. Advisory Board Review: The Advisory Board reviews the proposal using their expertise, provides comments for the community's reference, sets the proposal's incentives, and defines what the default outcome will be should voting fail.
3. Members Vote: RiskShield members vote for or against the proposal. in the meantime, the members' $RSY tokens may be locked-up in the RiskShield protocol until governance reaches a definite outcome.&#x20;
4. Execution: The outcome is disclosed to the public. The RiskShield team and community contributors will then work together to implement proposals that have made it through governance.&#x20;

Ultimately, the goal is to build RiskShield into a protocol that is secure and fair, one that is governed by and for the community.

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The governance function has not been launched yet. Kindly stay tuned for further updates.
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