Governance refers to the process by which plans for reform in Burnt Finance are presented and voted on by the community. There are no privileged access admin keys. The Gov contract is set to be the owner of Burnt Finance core contracts.
Through the governance process, propositions (described below) can be presented to the community. The ratification of new proposals such as verification of user accounts are handled by a voting process on the protocol level.
The BURNT token is used for governance functions and as a result, a user's respective stake in BURNT determines their voting power within the protocol. Only users who have staked BURNT can vote for positions. Thus, users with more BURNT tokens to stake have more influence when voting.
Propositions are the name given to new proposals on Burnt Finance. By making an initial deposit of BURNT tokens, any user may put forth a proposition. The proposition is passed once it meets the minimum voting quorum. If a proposition fails to meet the minimum voting quorum, the user's BURNT deposit is returned.
Propositions are voted on by the community and pass only once the quorum has been met. Changes dictated by the proposition are applied automatically without necessarily impacting the primary contracts. These may include parameter updates, auction model integrations, and new token type support. A contract upgrade can also be proposed with a higher voting threshold.
If a vote fails, the user must wait 10 days until proposing another vote, if the vote fails again the user must wait 30/60/365 days respective of failed governance proposal.
Verification serves as an important element within Burnt Finance. Verified users can be recognized by a checkmark next to their username. All user verifications are determined by the community.
In order to prevent frivolous activity, a user must first stake BURNT tokens in order to demonstrate seriousness and start the verification process. Once a vote is reached and the necessary quorum is met, the person is granted verification.
Verification can also be revoked by going through a similar process.
Any user may create a proposition to remove the verification of a particular user given a proper reason. After a quorum is met, the verification on a user will be removed. Users who have their verification removed are subject to wait 30 days before reapplying for another verification.