Overview

Paragon is designed to be community-owned and execution-driven.

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

governance portal
parameter voting
initial proposals

veXPGN launch
hybrid governance (Points + veXPGN)

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.

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Last updated 1 month ago