Stader’s Governance Mechanism Process

This forum post summarizes the process of creation and implementation of proposals through Stader’s governance mechanism.

The proposal should have the following details laid out:

  • Proposal Summary with key suggestions, asks
  • Background about the proposal or relevant entity linked to the proposal (if applicable)
  • Who will the proposal benefit?
  • Are there any underlying risks?
  • Other details, including any analysis, that corroborate the key suggestions
  • Possible Governance and Security implications

Validation Process

The entire process shall consist of 3 steps-

  1. Community Governance Forum:
  • Anyone can post a proposal and get feedback from the community. Proposals can be submitted under 4 categories:

  • If a proposal falls within the scope of topics mentioned below, a proposal will need to be submitted for snapshot voting before it is implemented:

    • Blockchain specific topics including validator selection criteria or changes to fees
    • Treasury management
    • SD Tokens
    • Any changes that have an implication on smart contract parameters for liquid staking
  1. Snapshot voting:
  • Proposer would have to create a new Snapshot poll for the proposal to be voted upon here- Stader’s Snapshot page
  • There is a requirement of holding a minimum of 50,000 SD tokens while posting a proposal for voting. All $SD token holders are eligible to vote on proposals. Voters will have an option of voting ‘for’, ‘against’ or ‘abstain’ on a proposal
  • Voting Power will be the sum of balance of SD & xSD tokens. Voting power is currently available for SD tokens and will be extended to xSD tokens in the future. (xSD will be launched in Phase 3: SD Staking)
  • At the end of 7 days of voting, the proposal shall be passed if it crosses the quorum of 1Mn SD votes.
  • If the proposal does not meet the quorum at the end of the voting period, it will be rejected. Thereafter, the proposer may resubmit the proposal for voting after 1 month.
  1. Implementation:
  • Once a proposal has passed the voting quorum, it will be implemented off-chain. The timeline for implementation will be defined by the Stader Core Team for each proposal. Since Stader is a multi-chain protocol, currently proposals are not executable code, they are implemented off-chain & executed by the team on a specific chain. Once the proposal is implemented, the community will be informed on the forum.

Stader Governance Council (SGC): Stader will establish a governance council that will have the power to veto or pass proposals to safeguard the interests of the community at large, in extreme situations.

The function of the SGC is to intervene in the following situations-

  1. In case of any adverse proposals, council members will meet and discuss the implications of the proposal. Majority voting of the Council will determine the veto to be exercised against a proposal.

  2. In case the required quorum for key proposals isn’t reached, despite positive community feedback, the Council will intervene to pass the proposal. This will be done after the majority of the Council consents to voting on the proposal.

All minutes of meeting(s) held between the Council will be documented and its summary will be shared on the Community Governance Forum.

Members of the Community Governance Council will constitute members from the Stader Team as well as the community:

Current members of the SGC include-

Share your thoughts and ideas on the mechanism.


Cool news… The entire process is amazing. Ty. :wink:

1 Like

Cool, we need this for SD holder