Governance & DAO

Progressive Decentralization

VEFFUT follows a progressive decentralization model, similar to successful projects like Illuvium and Axie Infinity. This ensures platform stability in early stages while gradually transferring control to the community.

Decentralization Timeline

Phase	Period	Governance Level
Phase 1	Launch - Month 6	Team-led with community input
Phase 2	Month 6 - 12	Hybrid governance (Team + Council)
Phase 3	Year 1+	Full DAO governance

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VEFFUT Council

The VEFFUT Council is the steering committee that guides platform development and strategic decisions. Inspired by Illuvium's Illuvinati Council model.

Council Structure

Role	Count	Term	Requirements
Council Members	5	6 months	Elected by VGT holders
Technical Advisor	1	Permanent	Core team appointment
Community Lead	1	6 months	Elected by community

Council Responsibilities

1. Strategic Direction: Guide platform roadmap and priorities

2. Treasury Management: Approve spending over 50,000 VGT

3. Partnership Approval: Evaluate and approve strategic partnerships

4. Emergency Actions: Quick response to critical issues

5. Proposal Review: Filter and prioritize community proposals

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Voting Mechanism

Voting Power

VGT holders can vote on proposals. Voting power is calculated using quadratic voting to reduce plutocracy (whale dominance):

Voting Power = √(VGT Staked × Lock Multiplier)

Lock Duration	Multiplier
No Lock	1.0x
30 Days	1.5x
90 Days	2.0x
180 Days	3.0x
365 Days	4.0x

Example Calculation

User A: 10,000 VGT staked for 180 days
Voting Power = √(10,000 × 3.0) = √30,000 = 173.2 votes

User B: 100,000 VGT staked (no lock)
Voting Power = √(100,000 × 1.0) = √100,000 = 316.2 votes

Result: User B has 10x more tokens but only 1.8x more votes

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Proposal System

Proposal Types

Type	Quorum	Approval	Voting Period
VIP (VEFFUT Improvement Proposal)	10% of staked VGT	66%	7 days
Treasury Proposal	15% of staked VGT	75%	7 days
Emergency Proposal	5% of staked VGT	80%	48 hours
Parameter Change	10% of staked VGT	51%	5 days

Proposal Lifecycle

1. DRAFT
   └─ Author creates proposal on forum
   └─ Community discussion (min 3 days)

2. REVIEW
   └─ Council reviews proposal
   └─ Technical feasibility check
   └─ Legal compliance review

3. VOTING
   └─ Snapshot vote begins
   └─ VGT holders cast votes
   └─ Voting period (5-7 days)

4. EXECUTION
   └─ If passed: 48-hour timelock
   └─ Implementation by team
   └─ Community verification

5. COMPLETED
   └─ Proposal marked complete
   └─ Results published on-chain

What Can Be Voted On?

Category	Examples
Tokenomics	Burn rates, staking APY, fee structures
Gameplay	New game modes, tournament rules, rewards
Treasury	Grant programs, marketing spend, partnerships
Technical	Smart contract upgrades, new features
Governance	Proposal rules, council structure, voting mechanisms

What Cannot Be Voted On?

• Changes that would violate legal requirements

• Decisions that compromise platform security

• Actions that would harm existing token holders

• Retroactive changes to vesting schedules

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Community Treasury

Treasury Composition

The Community Treasury is funded through multiple sources:

Source	Contribution
Marketplace Fees	25% of platform fees
Tournament Entry	10% of entry fees
NFT Pack Sales	15% of pack revenue
Partnership Revenue	20% of partnership deals

Treasury Allocation (DAO Controlled)

Purpose	Allocation
Development Grants	30%
Marketing & Growth	25%
Ecosystem Fund	20%
Bug Bounties & Security	15%
Emergency Reserve	10%

Multi-Signature Security

Treasury funds are secured by a 5-of-9 multi-signature wallet:

• 3 Council members

• 3 Core team members

• 3 Independent signers (advisors/auditors)

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Governance Participation Rewards

Active governance participants are rewarded:

Action	Reward
Voting on Proposal	10 VFT per vote
Creating Approved Proposal	500 VGT
Council Service (monthly)	1,000 VGT
Community Moderation	100 VFT/week

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Governance Roadmap

Phase 1: Foundation (2025) ✅

• Launch governance forum

• Deploy snapshot voting

• First council election

Phase 2: Expansion (Q1-Q2 2026)

• On-chain voting implementation

• Treasury multi-sig activation

• Delegation feature launch

Phase 3: Full DAO (Q3-Q4 2026)

• Complete decentralization

• Automated proposal execution

• Cross-chain governance

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Security Measures

Timelock Protection

All governance actions have mandatory timelocks:

Action Type	Timelock
Parameter Changes	24 hours
Treasury Transfers	48 hours
Contract Upgrades	72 hours
Emergency Actions	12 hours

Guardian System

A Guardian role exists for emergency situations:

• Can pause malicious proposals

• Cannot execute new actions

• Subject to community review

• Removed after full decentralization

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"Governance by the community, for the community. Your VGT, your voice."