The AC token serves as the fundamental driver for community governance by incentivizing stakeholders for participation and sound decision making. Ecosystem incentives are designed to compensate users and Governors for their efforts on driving growth, stability and sustainability of the ACoconut protocol suite.
Governors are required to stake AC in order to receive voting rights in the community governance process. Governors may be compensated by a portion of earnings from the BTC+ and acBTC protocol for bearing systematic risks and carrying out fiduciary duties to upkeep the ecosystem. The community governing body is responsible for the oversight of compensation decisions.
On the contrary, the staking mechanism would expose inferior decision makers in the community governance system since incentives are closely tied to the growth and usage of the ecosystem. In extreme cases, failure to upkeep the ACoconut protocol suite would trigger a potential loss of value at stake for the governing body.
At the initial stage, governance decisions will be led by the core team; with the ultimate goal of transitioning to a DAO structure as ACoconut matures and reaches a sustainable number of ecosystem partners. The framework contains an open governance module supporting upgrades and compatibility with DAO functions. All governance proposals and decisions will be fully accessible by the public.
The community governance system will oversee the design and implementation of the following:
Addition and removal of BTC-pegged and BTC LP constituents
Fee settings for protocol usage such as mint, redeem, swap
Rebase function for BTC+