> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/governance-and-tokens/overview.md).

# Overview

Governance evolves in two stages:

* **Phase A (Current):** User Points DAO
* **Phase B (Next):** veXPGN on-chain governance

### TL;DR

* anyone can propose (subject to thresholds)
* Points provide early governance participation
* veXPGN enables full on-chain control
* all execution is enforced via timelock

***

### Governance Philosophy

Paragon governance is built around:

* participation over speculation
* usage over passive holding
* transparent execution

***

👉 Protocol influence is tied to real usage and contribution.

***

### Phase A — User Points DAO

Paragon Points provide governance participation before token-based governance is live.

***

#### What Points Are

* non-transferable
* wallet-bound
* earned through activity
* time-decaying (seasonal)

***

👉 Points are not a token and have no market value.

***

#### How You Earn Points

Points are earned through protocol usage:

* swapping (Flow usage may receive higher weighting)
* providing liquidity
* farming participation
* governance participation
* ecosystem contributions

***

👉 Points reward active participation, not passive capital.

***

#### Delegation

* Points can be delegated
* delegates may represent groups or communities
* delegation is reversible at any time

***

### Proposal System

#### Step 1 — Proposal

* users above threshold can propose
* proposals submitted off-chain (e.g. Snapshot)

***

#### Step 2 — Voting

* voting power based on Points
* quorum and majority required

***

#### Step 3 — Execution

* multisig executes approved proposals
* enforced through timelock

***

👉 Policy:

The multisig follows approved votes except in defined security scenarios.

***

#### Safeguards

* timelock delay (≥ 48h)
* emergency guardian (limited scope)
* public execution logs
* full transparency

***

### Phase B — veXPGN (On-Chain Governance)

Paragon transitions to fully on-chain governance using veXPGN.

***

#### What is veXPGN

* XPGN locked → voting power
* time-weighted influence
* non-transferable

***

#### What veXPGN Controls

* emissions (farming incentives)
* execution parameters (e.g. reward splits)
* P10 configuration
* treasury and POL
* protocol upgrades

***

👉 veXPGN governance is binding and executed on-chain.

***

### Migration (Points → veXPGN)

Early participants are incorporated into the final governance system.

Points will translate into:

* governance boosts
* proposal participation rights
* early alignment within veXPGN

***

👉 The goal is to reward early users without diluting long-term governance integrity.

***

### Governance Scope

Governance can control:

***

#### ⚡ DEX Parameters

* fee structure
* execution parameters
* routing rules

***

#### 🌾 Emissions

* XPGN distribution
* pool incentives
* gauge weights

***

#### 📊 P10 Index

* asset eligibility
* rebalance cadence
* caps and constraints

***

#### 🏦 Treasury & POL

* buybacks
* liquidity deployment
* treasury allocation

***

#### 🛡️ Risk Controls

* oracle parameters
* safety thresholds
* system limits

***

### Governance Parameters (Initial)

* proposal threshold: \~25k Points
* quorum: \~1M Points
* majority: 50%+
* critical proposals: higher thresholds
* voting period: 5–7 days
* timelock: ≥ 48h

***

👉 All parameters are adjustable via governance.

***

### Transparency

Paragon provides:

* governance interface
* proposal tracking
* vote records
* timelock execution logs

***

👉 All governance actions are verifiable.

***

### System Integration

Governance directly influences:

* execution parameters
* emissions and incentives
* index configuration
* treasury management

***

👉 Governance defines how the protocol evolves over time.

***

### Roadmap

**S1**

* governance portal
* parameter voting
* initial proposals

***

**S2**

* veXPGN launch
* hybrid governance (Points + veXPGN)

***

**S3**

* full on-chain governance
* Points transition into participation layer

***

### ⚠️ Important Notes

* Points are not tradable
* governance evolves over time
* emergency powers are limited
* transparency is enforced

***

### Summary

* Points provide early governance participation
* veXPGN enables long-term control
* governance is tied to usage and contribution
* execution is transparent and enforced

***

Paragon governance is designed to transition from participation-based coordination to fully on-chain, token-governed control.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://paragon-protocol.gitbook.io/paragon-protocol/governance-and-tokens/overview.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.