The governance system in the Rabi Protocol is designed to empower RABI token holders with decision-making authority while ensuring transparency and security. It consists of two key stages:
💬 1. Proposal Polling:
- Builds initial consensus within the community.
- Prepares proposals for the executive vote phase.
✅ 2. Executive Voting:
- Approves critical system changes, such as adjusting risk parameters.
⚙️ How the Governance Process Works
📌 Smart Contracts:
- Each vote is conducted via smart contracts for efficiency and security.
- A Proposal Contract contains actionable governance changes and can only be executed once.
🌐 Proposal Creation:
- Any address on the Binance Smart Chain can create valid Proposal Contracts.
- This ensures a decentralized and inclusive governance framework.
⚡️ Active Proposal Election:
- RABI token holders vote on proposals.
- The proposal with the most votes becomes the active proposal and gains access to governance variables.
Role of RABI Token in Recapitalization
⚠️ Recapitalization Mechanism:
- If the system debt exceeds the surplus, the supply of RABI tokens increases through a Debt Auction.
💰 Purpose of Recapitalization:
- Ensures the protocol remains financially stable.
- Encourages RABI holders to engage in responsible governance and risk management to prevent excessive debt accumulation.
Why Governance Matters
The governance system in the Rabi Protocol empowers the community to:
- Make informed decisions for the protocol’s growth and stability.
- Maintain financial resilience through recapitalization mechanisms.
- Foster a decentralized ecosystem where all participants have a voice.
🌟 Join the RABI community and take part in shaping the future of decentralized finance. 🌟
