Governance

Governance on Ilum.Fi gives ILM token holders the power to shape the platform's future. By participating in on-chain voting, users can influence key decisions like protocol updates, fee changes, and the creation of new asset pools. This ensures that Ilum.Fi stays aligned with the interests of its community.

How Governance Works

  1. ILM Staking and Voting Power

    • Stake ILM tokens to receive voting power

    • Longer lock = more voting power. The longer you stake your ILM, the more influence you have.

    • Earn while you vote: Stakers also receive a share of trading fees.

  2. Submitting Proposals

    • Anyone with ILM can submit proposals to suggest changes.

    • Example proposals include:

      • Adjusting trading fees

      • Adding new liquidity pools

      • Allocating treasury funds for development

  3. Voting and Execution

    • Once submitted, proposals enter a voting period where ILM holders can vote.

    • Majority wins: The platform’s smart contracts automatically implement the changes if a proposal passes.

Why Governance Matters

  • Community-Driven Decisions: The platform evolves based on user input and needs.

  • Fair Rewards: ILM holders earn fees and gain voting power, incentivizing long-term engagement.

  • Transparent Process: All proposals and votes are publicly visible, ensuring fairness and trust.

Example Proposal Workflow

  1. A user proposes to lower trading fees from 0.3% to 0.25%.

  2. The proposal enters a 7-day voting period.

  3. If the proposal passes, the smart contract updates the fee automatically.

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