Governance

Development Status: DRVS token and governance features are not yet deployed on Solana Mainnet. Deriverse v1 is under continuous development and currently deployed on Solana Devnet only.

Deriverse will employ a structured on-chain governance system powered by DRVS token holders to manage protocol parameters and evolution.

Overview

After initial mainnet deployment, all protocol changes will occur through decentralized governance. DRVS token holders will vote on parameter adjustments within predefined bounds, ensuring the protocol remains responsive to community needs while maintaining stability.

Governance Token (DRVS)

Utility Functions

Governance Participation:

  • Vote on protocol parameter changes

  • Propose new voting topics

  • Shape protocol evolution

Fee Sharing:

  • Earn pro-rata share of platform revenues

  • Automatic distribution based on stake

  • All fees distributed in USDC

Staking Requirements:

  • Only DRVS deposited in Deriverse accounts are eligible

  • Tokens locked in open orders are excluded

  • Voting weight calculated at topic initiation

Voting Mechanics

Sequential Decision Making

Governance topics are processed one at a time to ensure focused deliberation:

Topic 1: Base Fee Rate → Vote → Result → Topic 2: Pool Ratio → Vote → Result

Process Flow:

  1. Topic proposed with specific parameter

  2. Voting period opens

  3. Community votes (Increase/Decrease/Unchanged)

  4. Result implemented

  5. Next topic begins

Voting Options

Each vote offers three choices:

Option
Action
Effect

Increase

Increment by step size

Parameter moves toward maximum

Decrease

Decrement by step size

Parameter moves toward minimum

Unchanged

No modification

Parameter remains at current value

Bounds and Safety

All parameters have predefined limits:

  • Minimum Value: Lower bound that cannot be exceeded

  • Maximum Value: Upper bound that cannot be exceeded

  • Step Size: Fixed increment/decrement amount

  • Auto-Disable: Increase/Decrease options disabled at bounds

Governance Parameters

Launch Parameters

Key parameters subject to governance control:

Parameter
Description
Impact

Base Fee Rates

Trading fees for spot, perpetual, futures (v2), options (v2)

Revenue generation

Pool Ratio Target

Target ratio for spot market pools

Liquidity balance

Margin Call Penalty

Penalty rate for liquidations

Risk management

Prepayment Threshold

Amount required for maximum fee discount

Fee optimization

Note: Specific values will be finalized before mainnet deployment.

Parameter Categories

Fee Structure:

  • Spot market base fees

  • Perpetual futures fees

  • Traditional derivatives fees (v2)

  • Options trading fees (v2)

Risk Management:

  • Margin call thresholds

  • Liquidation penalties

  • Insurance fund allocations

Liquidity Management:

  • Pool ratio targets

  • Market maker incentives

  • Rebate structures

Voting Eligibility

Requirements

To participate in governance:

  1. Hold DRVS: Own DRVS tokens

  2. Deposit Tokens: Transfer DRVS to Deriverse account

  3. Avoid Locks: Ensure tokens aren't locked in open orders

  4. Vote Timing: Participate during active voting periods

Voting Weight Calculation

Voting Weight = DRVS Balance at Topic Start

  • Calculated when voting topic begins

  • Based on eligible DRVS balance

  • One vote per account regardless of balance

  • Proportional influence on outcome

Revenue Sharing

Fee Distribution

DRVS stakers receive platform revenue through:

Automatic Distribution:

  • Pro-rata share based on stake size

  • All revenues distributed in stablecoin

  • On-chain execution ensures transparency

  • No manual claims required

Revenue Sources:

  • Spot trading fees

  • Perpetual futures fees

  • Traditional derivatives fees (v2)

  • Options trading fees (v2)

  • Liquidation penalties

Staking Mechanism

Stake DRVS → Earn Platform Fees → Compound or Withdraw

Benefits:

  • Passive income from protocol growth

  • Aligned incentives with platform success

  • Transparent, on-chain distribution

  • No minimum staking period

Governance Best Practices

For Voters

Stay Informed:

  • Review parameter impact analysis

  • Understand economic implications

  • Consider long-term protocol health

Active Participation:

  • Vote on all relevant topics

  • Engage in community discussions

  • Share expertise and insights

For the Community

Proposal Quality:

  • Provide clear rationale for changes

  • Include impact analysis

  • Consider all stakeholders

Balanced Decisions:

  • Balance user costs with protocol sustainability

  • Consider market competitiveness

  • Maintain protocol security

Future Governance Evolution

Potential Enhancements

As the protocol matures, governance may expand to include:

  • New Product Categories: Voting on additional trading products

  • Integration Parameters: Cross-protocol partnership terms

  • Risk Model Updates: Enhanced risk management frameworks

  • Fee Model Innovation: New fee structures and incentive mechanisms

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