# FlipDao Governance

At FlipDao, our goal is to create a financial infrastructure that applications and developers can trust forever. To get there, we intend to fully decentralize the Flip protocol, removing the single biggest point of failure (our team) and creating an open and indestructible protocol that can evolve in entirely new ways. Today, we are proud to introduce a governance system that will replace the Flip protocol administrator with community governance, allowing you to suggest, discuss and implement changes to FlipDao, without depending on or requiring our team at all.

**Flip's governance token**

Participation begins with Flip's governance token, FLIP. In addition to being an ERC-20 standard asset, FLIP allows the owner to delegate voting rights to the management of his choice; the wallet of the owner, another user, an app, or a DeFi expert. Anyone can participate in the governance of Flip by receiving delegation, without having to own FLIP. The token also includes code to query the historical voting weight of an address, which is useful for creating complex voting systems. We hope that FLIP can set the standard for governance tokens and our team will write an Ethereum Improvement Plan (similar to the ERC-20 standard) to accelerate the decentralization of the entire ecosystem. FLIP enhances community governance; It is not a fundraising device or an investment opportunity. Until the decentralization process is complete, FLIP will not be available to the public.

**Community decisions, not centralized**

We have designed a simple governance framework so that you can easily participate in FlipDao's address setup. Is that how it works: Anyone who has 1% of FLIP delegated to their management can propose a governance action; These are simple or complex sets of actions, such as adding support for a new asset, changing an asset's collateral factor, changing a market's interest rate model, or changing any other protocol parameters or variables that the current manager may be able to do. Modify. Proposals are executable code, not suggestions for implementation by a team or foundation. All proposals are subject to a 3-day voting period, and any address with voting power can vote for or against the proposal. If a majority and at least 400,000 votes are cast for the proposal, it is queued on the Timelock and can be implemented after 2 days.

**Decentralization process**

The transition to community governance will be managed with a relentless focus on security and stability, and will follow the principle of increasing decentralization. During an initial trial period, a portion of the governance tokens will be distributed among our company's shareholders, who can delegate the weight of the votes to themselves or to the public as they see fit; the majority of FLIP will be in custody and will not participate in governance. Developers relying on FlipDao are encouraged to actively participate in the governance, which will be tested in the open. Fail-safe, our team will have the ability to suspend the governance system (though not the protocol's 2-day lockdown time) during the sandbox. When the governance system is functioning reliably and distributed, we will suggest that the security system be removed and the remaining tokens distributed to users of the Flip protocol. We will publish more details of this plan in the coming months. Pay attention!
