Governance Token Economics

The Strudel Protocol has multiple parameters that affect its security, operations and economic viability. Some of the governance parameters are:

  • bridge devFundDivRate: 17
  • bridge numConfs: 4
  • torchShip strudelPerBlock: 1
  • torchShip startBlock: 11,021,639
  • torchShip bonusEndBlock: 11,434,002

In addition to governance parameters, 3 of the core contract, vBTC, Bridge, and TorchShip are upgradeable. the functionality can changed and storage of the contract can be extended. Through constant updates the protocol can react to market changes and other factors.

In addition to gov params and contract upgrades, treasury management, technical roadmap and more affect the future of the Strudel Protocol. All these aspects are meant to be affected by governance.

Goals

The governance process should allow to steer the protocol in an agile way. At the same time protocol capture, a situation where forces utilize the protocol to achieve external goals, should be avoided. To achieve the balance focus has to be put on the following properties of the governance process:

  • community-originating proposals
  • high voter participation
  • decisions that balance short-term with long-term interests

g$TRDL

g$TRDL (governance $TRDL) is introduced as a token that represent voter weight in the Strudel Protocol. It is created by locking $TRDL for a period between 1 week and 1 year. locks that have the duration of 1 year mint a 1 g$TRDL per 1 $TRDL, while locks for the duration of a week 1 g$TRDl per 26 $TRDL locked.

g$TRDL issuance

Once the lock duration has expired $TRDL can be reclaimed by burning g$TRDL. Once g$TRDL are minted they are transferred to the governance rollup. Decisions of the governance rollup will directly affect contract by changing parameters and upgrading contracts.

Usage

  1. visit vote.strudel.finance
  2. select “My Account” from the header menu. You should see your $TRDL balance.
  3. hit “Lock $TRDL into Voting” and select a duration. You will see your g$TRDL balance updated.
  4. lastly, deposit g$TRDL into the rollup (these transactions will be combined into 1 shortly)
  5. :clap: you are ready to create and vote on proposals.