As SODIUM matures, the protocol will undergo progressive decentralization and eventually be governed by a DAO of SOD token holders, with both on-chain & off-chain governance structures. The founding team will bootstrap the initial release of SODIUM.
The SOD token will be required to firstly bring forth, then vote on, proposals that would affect key parameters such as economics, security and development of the protocol.
Examples of parameters that could be voted on:
- Interest Rate Model
- The addition of NFT collections that meet the risk requirements of the protocol
- Risk parameters for over-collateralization and liquidation
- Changes to the Liquidity Mining Program to adjust incentives depending on market conditions
- Improvements to the protocol, such as changes to smart contracts and governance processes