> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usmewe.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Governance Overview

> How usmewe is governed by its community

# Governance

usmewe is progressively decentralizing governance to its community. Token holders can propose and vote on protocol changes.

## Governance Model

```
┌─────────────────────────────────────────────────────────────────┐
│  USMEWE GOVERNANCE                                              │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│    tmUSDC Holders                                               │
│         │                                                       │
│         ▼                                                       │
│    ┌─────────┐     ┌─────────┐     ┌─────────┐                │
│    │ Propose │ ──► │  Vote   │ ──► │ Execute │                │
│    └─────────┘     └─────────┘     └─────────┘                │
│                                                                 │
│    Timelock: 48 hours before execution                          │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘
```

## Governance Token

**tmUSDC** (Trust Mint USDC) serves as the governance token:

<CardGroup cols={2}>
  <Card title="Voting Power" icon="vote-yea">
    1 tmUSDC = 1 base vote (multiplied by level)
  </Card>

  <Card title="Proposal Rights" icon="file-pen">
    1,000 tmUSDC required to create proposals
  </Card>

  <Card title="Delegation" icon="user-group">
    Delegate votes to representatives
  </Card>

  <Card title="Snapshot" icon="camera">
    Voting power snapshot at proposal creation
  </Card>
</CardGroup>

## What Can Be Governed?

### Protocol Parameters

| Parameter                 | Current | Governance |
| ------------------------- | ------- | ---------- |
| Base interest rate        | 3%      | Adjustable |
| Insurance fee             | 10%     | Adjustable |
| Minimum Trust Score       | 10      | Adjustable |
| Maximum loan duration     | 90 days | Adjustable |
| Vault utilization targets | 80%     | Adjustable |

### Smart Contracts

* Upgrade proxy implementations
* Add new supported assets
* Modify access control roles
* Emergency pause functions

### Treasury

* Protocol fee allocation
* Development funding
* Marketing initiatives
* Bug bounty rewards

## Governance Process

<Steps>
  <Step title="Discussion">
    Ideas discussed on Discord and governance forum
  </Step>

  <Step title="Temperature Check">
    Informal poll to gauge community interest
  </Step>

  <Step title="Proposal">
    Formal on-chain proposal (requires 1,000 tmUSDC)
  </Step>

  <Step title="Voting Period">
    7 days for token holders to vote
  </Step>

  <Step title="Timelock">
    48-hour delay before execution
  </Step>

  <Step title="Execution">
    Proposal executed on-chain
  </Step>
</Steps>

## Voting Thresholds

| Requirement            | Value        | Description                |
| ---------------------- | ------------ | -------------------------- |
| **Proposal Threshold** | 1,000 tmUSDC | Minimum to create proposal |
| **Quorum**             | 4%           | Minimum participation      |
| **Majority**           | 50%+1        | Votes needed to pass       |
| **Timelock**           | 48 hours     | Execution delay            |

## Level Multipliers

Your level affects voting power:

| Level         | Multiplier | Example                |
| ------------- | ---------- | ---------------------- |
| Bronze - Gold | 1.0x       | 100 tmUSDC = 100 votes |
| Platinum      | 1.5x       | 100 tmUSDC = 150 votes |
| Diamond       | 2.0x       | 100 tmUSDC = 200 votes |

<Tip>
  Level multipliers reward long-term, active participants with greater influence.
</Tip>

## Current Phase

<Note>
  usmewe is in **Phase 1** of progressive decentralization.
</Note>

| Phase       | Status  | Description                 |
| ----------- | ------- | --------------------------- |
| **Phase 1** | Current | Core team + community input |
| **Phase 2** | Q3 2025 | Limited on-chain governance |
| **Phase 3** | Q4 2025 | Full community governance   |
| **Phase 4** | 2026    | DAO transition              |

## Emergency Actions

For critical situations, a multi-sig guardian can:

* Pause contracts immediately
* Execute emergency fixes
* Override timelock (with disclosure)

<Warning>
  Emergency powers will be progressively removed as the protocol matures.
</Warning>

## Get Involved

<CardGroup cols={2}>
  <Card title="Discord" icon="discord" href="https://discord.gg/usmewe">
    Join governance discussions
  </Card>

  <Card title="Forum" icon="comments" href="#">
    Governance proposals forum
  </Card>

  <Card title="Voting Power" icon="bolt" href="/governance/voting-power">
    Understand your voting power
  </Card>

  <Card title="Proposals" icon="file" href="/governance/proposals">
    View and create proposals
  </Card>
</CardGroup>