Governance Architecture
Neutron DAO (Agora)
The primary governance entity with ultimate authority, governed by Neutron’s stakeholders through the NTRN token. Controls network upgrades, crucial parameters, and committees.
Committees (subDAOs)
Specialized governance entities with dedicated powers and resources for day-to-day operations like grants and incentive programs.
How is Neutron Governance Different?
- Following the Mercury upgrade, Neutron is now a sovereign chain with its own validator set and staking model
- Voting power comes from bonding NTRN or DeFi tokens containing NTRN through Voting Vaults
- Native stakers can participate in governance through the Staked NTRN Voting Vault
- Specialized Committees handle routine governance to minimize voter fatigue
- Tokenholders can keep Committees accountable through “overrule proposals”
- Chain Manager implements granular permission controls for privileged operations
Chain Manager
The Chain Manager implements a permission system to control which entities can execute privileged actions on the blockchain using two permission strategies:- ALLOW_ALL: Grants an entity full access to all privileged functions without restriction
- ALLOW_ONLY: Permits an entity to execute only specific message types with possible additional restrictions
Supported Privileged Messages
Message Type | Description | Possible Restrictions |
---|---|---|
params.ParamChangeProposal | Changes parameters of modules using the deprecated params module | Specific modules and parameters |
module_name.MsgUpdateParams | Updates parameters of modules using the new-style param updates | Specific fields within the message |
cron.AddSchedule | Adds new execution schedules to the CRON module | None |
cron.RemoveSchedule | Removes schedules from the CRON module | None |
upgrade.SoftwareUpgradeProposal | Schedules a software upgrade | None |
upgrade.CancelSoftwareUpgradeProposal | Cancels a scheduled upgrade | None |
Permission Assignments
Current permission assignments include: Neutron DAO Core Contract with ALLOW_ALL strategy for comprehensive network control, Expedited Upgrades Multisig with ALLOW_ONLY for software upgrade proposals and cancellations, and Tokenfactory Hooks Multisig with ALLOW_ONLY for updating tokenfactory hook parameters.Neutron DAO (Agora)
The Neutron DAO serves as the highest governance authority, with comprehensive control over the network, including permissions for committees.Voting Power System
Neutron uses dedicated smart contracts called Voting Vaults to calculate governance power. These vaults can accept any tokenized position containing NTRN:- NTRN Vault: Accepts NTRN deposits and grants 1 point of voting power per token without lock-up
- LP Token Vaults: Accepts LP token deposits and counts the underlying NTRN (both NTRN-ATOM and NTRN-USDC pairs have Voting Vaults)
- Staked NTRN Vault: Added during the Mercury upgrade, grants 1 point of governance power per NTRN delegated to validators via native staking
- Virtual Vaults: Track NTRN held in other contracts (lockdrops, vesting contracts), ensuring all NTRN holders can participate in governance
Proposal Types
Single-choice Proposals
Standard yes/no decisions with a 50% threshold
Multiple-choice Proposals
Decisions with multiple options where the most-voted option wins
Overrule Proposals
Special proposals with a lower threshold (0.5%) for overruling subDAO decisions
Committees (subDAOs)
The Agora can create specialized Committees with specific powers and resources for day-to-day operations. These subDAOs are customizable in terms of membership (defining who can participate), voting weight (configuring how votes are weighted), and execution rights (setting specific parameters and permissions).Active SubDAOs
Cron SubDAO: Manages scheduling proposals for the Cron module, enabling automated contract executions through governance oversight. This subDAO handles routine scheduling decisions while remaining accountable to the main DAO through the overrule mechanism. Security SubDAO: A specialized subDAO that can only executepause()
methods on certain contracts, enabling rapid response to security incidents. This subDAO can pause other subDAOs, the Reserve contract, and the Distribution contract.
Timelocks & Overrules
- When a subDAO proposal passes, it enters a timelock period (typically 3 days)
- During this period, the main DAO can create an overrule proposal with a low threshold (0.5%)
- If the overrule proposal passes, the subDAO proposal is rejected
- If no overrule occurs, the subDAO proposal executes after the timelock period