Governance & Tokenomics
9.1 Governance Model
Protocol DAO (“Degents DAO”)
Token-holder assembly
Parameter changes, treasury spend, protocol upgrades
Snapshot off-chain voting → on-chain Executor (Timelock ± 2 days)
Technical Council (5–9 seats, rotating)
Elected by DAO
Emergency patches, security disclosures
Multisig (Safe) with 24 h post-action transparency report
Plugin Council
Maintainer & staker delegates
Certification criteria, slashing appeals
Optimistic roll-ups of plugin scores; veto power held by DAO
Proposal lifecycle
Temperature check → 1 % token quorum, soft majority.
Formal proposal (on-chain) → 4 % quorum, ≥60 % yes.
Time-lock → 48 h for final review / legal objections.
Execution → Proxy upgrade, parameter push, or treasury transfer.
Fail-safes: Emergency Council can pause the protocol for 7 days with ⅔ multisig if a critical exploit is confirmed.
9.2 Native Token (ticker: DGN) — Utility
Governance vote
1 DGN = 1 vote (quadratic weighting optional)
Aligns long-term protocol direction with stakeholder interests
Network fees
20 % of protocol fees payable in DGN for a 30 % discount
Drives real economic sink and invoice transparency
Action staking
Plugin authors bond DGN as a quality deposit; slashed on malicious output
Curates high-trust action marketplace
Liquidity rebates
Agents that exceed volume thresholds earn DGN via weekly rebate pools
Boosts network activity and depth
Treasury yield share
Staked DGN receives pro-rata share of treasury yield (yield aggregator)
Incentivises holding vs. speculation
Total supply: 1 billion DGN, fixed cap. Genesis allocation
Community airdrop
15 %
Instant (25 %) + 1 yr linear
Ecosystem incentives
30 %
Emitted over 4 yrs
Core contributors
20 %
1-yr cliff, 3-yr linear
Investors
20 %
1-yr cliff, 2-yr linear
Treasury reserve
15 %
Unlocked, DAO-controlled
Emission ends after 4 years; protocol fees thereafter sustain all incentives.
9.3 Economic Incentive Loops
Plugin Developer Flywheel Bond → Pass audit → Earn call fees → Stake gains to increase bonding cap.
Agent Operator Loop Deploy agent → Stake minimum DGN → Earn fee rebates + yield → Re-invest in new strategies.
Treasury Growth Cycle Protocol fees → Treasury aggregator → Low-risk on-chain yield → Distributed to stakers, audit grants, and R&D.
Slashing & claw-back: malicious plugins, policy bypass attempts, or oracle manipulation trigger graduated slashing—beginning with bond confiscation and extending to DAO blacklisting.
9.4 Treasury & Sustainability
Treasury contract collects 30 bps on action fees (after discounts).
Deployment: 60 % stablecoin, 30 % ETH/LST, 10 % strategic tokens.
Spending framework • 40 % Ecosystem grants (plugins, tooling, research) • 25 % Liquidity provisioning and buy-backs (open market operations) • 20 % Security: audits, bug-bounties, insurance cover • 15 % Reserve (black-swan buffer)
Quarterly transparency reports include: inflows, outflows, risk metrics, and independent auditor attestations.
Outcome The DGN token anchors governance, security, and economic alignment. Staking ties reputation to economic risk; fee rebates and treasury yield reward productive behaviour. A capped supply with clear sinks and an actively managed treasury positions Degents for long-term resilience without perpetual inflation.
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