Protocol Governance
Learn about governance mechanisms in liquid staking protocols.
Overview
A decentralized governance system is essential for managing protocol parameters, fee structures, and protocol upgrades in a transparent and community-driven manner. This guide covers the implementation of a comprehensive governance system for your liquid staking protocol.
Key Features
- •Token-weighted voting
- •Timelock mechanisms
- •Impact analysis
- •Emergency procedures
Proposal System
Implement a robust proposal system that allows stakeholders to submit and review governance proposals.
Parameter Updates
Proposals for modifying protocol parameters like fee rates, thresholds, and timelock periods.
Protocol Upgrades
Proposals for implementing protocol upgrades, new features, or security improvements.
Emergency Actions
Proposals for emergency measures like pausing operations or implementing critical fixes.
Proposal System Implementation
1pub struct Proposal {
2 /// Unique proposal identifier
3 pub id: u64,
4
5 /// Proposal creator
6 pub creator: Pubkey,
7
8 /// Proposal type
9 pub proposal_type: ProposalType,
10
11 /// Proposal title
12 pub title: String,
13
14 /// Proposal description
15 pub description: String,
16
17 /// Proposed changes
18 pub changes: Vec<ProposedChange>,
19
20 /// Voting period
21 pub voting_period: VotingPeriod,
22
23 /// Required quorum
24 pub required_quorum: u64,
25
26 /// Current status
27 pub status: ProposalStatus,
28}
29
30impl Proposal {
31 pub fn create_proposal(
32 &mut self,
33 creator: &AccountInfo,
34 params: ProposalParams,
35 ) -> ProgramResult {
36 // Verify proposal creation requirements
37 self.verify_creation_requirements(creator)?;
38
39 // Set proposal parameters
40 self.creator = *creator.key;
41 self.proposal_type = params.proposal_type;
42 self.title = params.title;
43 self.description = params.description;
44 self.changes = params.changes;
45
46 // Set voting parameters
47 self.voting_period = VotingPeriod::new(
48 Clock::get()?.unix_timestamp,
49 params.duration,
50 );
51 self.required_quorum = self.calculate_required_quorum()?;
52
53 // Initialize status
54 self.status = ProposalStatus::Active;
55
56 // Emit proposal creation event
57 emit!(ProposalCreated {
58 proposal_id: self.id,
59 creator: self.creator,
60 proposal_type: self.proposal_type,
61 timestamp: self.voting_period.start_time,
62 });
63
64 Ok(())
65 }
66
67 fn verify_creation_requirements(
68 &self,
69 creator: &AccountInfo,
70 ) -> ProgramResult {
71 // Verify creator is a signer
72 if !creator.is_signer {
73 return Err(GovernanceError::SignatureMissing.into());
74 }
75
76 // Verify creator has sufficient voting power
77 let voting_power = self.get_voting_power(creator.key)?;
78 if voting_power < self.min_proposal_power {
79 return Err(GovernanceError::InsufficientVotingPower.into());
80 }
81
82 Ok(())
83 }
84}
Voting System
Implement a secure and efficient voting system with proper power calculation and vote counting.
Voting System Implementation
1pub struct VotingSystem {
2 /// Voting power snapshot
3 pub power_snapshot: VotingPowerSnapshot,
4
5 /// Vote registry
6 pub vote_registry: VoteRegistry,
7
8 /// Quorum settings
9 pub quorum_settings: QuorumSettings,
10}
11
12impl VotingSystem {
13 pub fn cast_vote(
14 &mut self,
15 voter: &AccountInfo,
16 proposal_id: u64,
17 vote: Vote,
18 ) -> ProgramResult {
19 // Verify voter eligibility
20 self.verify_voter_eligibility(voter, proposal_id)?;
21
22 // Calculate voting power
23 let voting_power = self.power_snapshot
24 .get_voting_power(voter.key)?;
25
26 // Record vote
27 self.vote_registry.record_vote(
28 proposal_id,
29 voter.key,
30 vote,
31 voting_power,
32 )?;
33
34 // Check if quorum is reached
35 if self.has_reached_quorum(proposal_id)? {
36 self.handle_quorum_reached(proposal_id)?;
37 }
38
39 // Emit vote cast event
40 emit!(VoteCast {
41 proposal_id,
42 voter: *voter.key,
43 vote,
44 voting_power,
45 timestamp: Clock::get()?.unix_timestamp,
46 });
47
48 Ok(())
49 }
50
51 pub fn calculate_result(
52 &self,
53 proposal_id: u64,
54 ) -> Result<VoteResult, ProgramError> {
55 let votes = self.vote_registry
56 .get_proposal_votes(proposal_id)?;
57
58 let mut for_votes = 0;
59 let mut against_votes = 0;
60 let mut abstain_votes = 0;
61
62 for vote in votes {
63 match vote.vote_type {
64 VoteType::For => for_votes += vote.power,
65 VoteType::Against => against_votes += vote.power,
66 VoteType::Abstain => abstain_votes += vote.power,
67 }
68 }
69
70 Ok(VoteResult {
71 for_votes,
72 against_votes,
73 abstain_votes,
74 quorum_reached: self.has_reached_quorum(proposal_id)?,
75 passed: self.has_passed(for_votes, against_votes)?,
76 })
77 }
78}
Execution System
Implement secure execution mechanisms for approved proposals with proper timelocks and verification.
Execution System Implementation
1pub struct ExecutionSystem {
2 /// Timelock settings
3 pub timelock: TimelockSettings,
4
5 /// Execution queue
6 pub execution_queue: ExecutionQueue,
7
8 /// Execution authority
9 pub execution_authority: Pubkey,
10}
11
12impl ExecutionSystem {
13 pub fn queue_execution(
14 &mut self,
15 proposal_id: u64,
16 authority: &AccountInfo,
17 ) -> ProgramResult {
18 // Verify proposal is approved
19 self.verify_proposal_approved(proposal_id)?;
20
21 // Calculate timelock period
22 let timelock_end = Clock::get()?.unix_timestamp
23 .checked_add(self.timelock.delay_period)
24 .ok_or(GovernanceError::TimestampOverflow)?;
25
26 // Queue execution
27 self.execution_queue.add_execution(
28 proposal_id,
29 timelock_end,
30 authority.key,
31 )?;
32
33 // Emit queued event
34 emit!(ExecutionQueued {
35 proposal_id,
36 timelock_end,
37 authority: *authority.key,
38 });
39
40 Ok(())
41 }
42
43 pub fn execute_proposal(
44 &mut self,
45 proposal_id: u64,
46 authority: &AccountInfo,
47 ) -> ProgramResult {
48 // Verify execution authority
49 self.verify_execution_authority(authority)?;
50
51 // Verify timelock has passed
52 self.verify_timelock_passed(proposal_id)?;
53
54 // Get proposal changes
55 let changes = self.get_proposal_changes(proposal_id)?;
56
57 // Execute each change
58 for change in changes {
59 match change {
60 ProposedChange::UpdateParameter(param) => {
61 self.execute_parameter_update(param)?;
62 }
63 ProposedChange::UpgradeProgram(upgrade) => {
64 self.execute_program_upgrade(upgrade)?;
65 }
66 ProposedChange::EmergencyAction(action) => {
67 self.execute_emergency_action(action)?;
68 }
69 }
70 }
71
72 // Update proposal status
73 self.update_proposal_status(
74 proposal_id,
75 ProposalStatus::Executed,
76 )?;
77
78 // Emit execution event
79 emit!(ProposalExecuted {
80 proposal_id,
81 executor: *authority.key,
82 timestamp: Clock::get()?.unix_timestamp,
83 });
84
85 Ok(())
86 }
87}
Monitoring System
Implement comprehensive monitoring for governance activities and proposal impacts.
Monitoring System Implementation
1pub struct GovernanceMonitor {
2 /// Metrics collector
3 pub metrics: GovernanceMetrics,
4
5 /// Alert system
6 pub alert_system: AlertSystem,
7
8 /// Impact analyzer
9 pub impact_analyzer: ImpactAnalyzer,
10}
11
12impl GovernanceMonitor {
13 pub async fn monitor_governance_activity(
14 &self,
15 context: &GovernanceContext,
16 ) -> ProgramResult {
17 // Collect governance metrics
18 let metrics = self.metrics.collect(context).await?;
19
20 // Analyze proposal impacts
21 let impacts = self.impact_analyzer
22 .analyze_proposals(context)
23 .await?;
24
25 // Check for concerning patterns
26 if let Some(concerns) = self.detect_concerns(&metrics, &impacts)? {
27 // Generate alerts
28 self.alert_system
29 .generate_alerts(&concerns)
30 .await?;
31 }
32
33 // Update monitoring status
34 self.update_monitoring_status(&metrics, &impacts)?;
35
36 // Generate periodic report
37 if self.should_generate_report() {
38 self.generate_monitoring_report(&metrics, &impacts)?;
39 }
40
41 Ok(())
42 }
43
44 pub fn analyze_proposal_impact(
45 &self,
46 proposal: &Proposal,
47 ) -> Result<ProposalImpact, ProgramError> {
48 // Analyze parameter impacts
49 let parameter_impacts = self.analyze_parameter_impacts(
50 &proposal.changes,
51 )?;
52
53 // Analyze security implications
54 let security_impacts = self.analyze_security_impacts(
55 &proposal.changes,
56 )?;
57
58 // Analyze economic impacts
59 let economic_impacts = self.analyze_economic_impacts(
60 &proposal.changes,
61 )?;
62
63 Ok(ProposalImpact {
64 parameter_impacts,
65 security_impacts,
66 economic_impacts,
67 risk_level: self.calculate_risk_level(
68 ¶meter_impacts,
69 &security_impacts,
70 &economic_impacts,
71 )?,
72 })
73 }
74}
Implementation Considerations
- Implement proper access controls and voting power calculation
- Use timelocks for sensitive operations
- Include emergency procedures for critical situations
- Maintain comprehensive proposal history
- Implement proper vote delegation mechanisms
- Consider implementing a governance token
- Regular audits of governance activities