Other Voting Resolutions: As And When Presented

While the Risk Committee selection follows a structured quarterly schedule, the STBL also supports a flexible and responsive governance process through other voting resolutions. This dynamic mechanism ensures that the protocol can quickly adapt to emerging challenges, market changes, and growth opportunities. Governance proposals can be submitted at any time by eligible participants, including token holders, developers, and community representatives. Once submitted, proposals undergo a transparent voting process where the community collectively decides on the best course of action.

These voting resolutions cover a wide range of topics, offering the community a direct voice in the protocol's evolution. From technical improvements to economic adjustments and new asset onboarding, the decentralized governance system ensures that the protocol remains agile and community-driven. Below are the primary categories of decisions that can be addressed through these proposals:

1. Protocol Upgrades

One of the most common uses of governance voting is to approve or reject protocol upgrades. These may include:

• Software Enhancements: Implementing new features to improve user experience, system performance, and operational efficiency.
• Security Patches: Addressing vulnerabilities or improving smart contract security through upgrades.
• Bug Fixes: Resolving software bugs reported by users or developers.
• Infrastructure Improvements: Optimizing network scalability, reducing transaction fees, or improving consensus mechanisms.

Proposals for upgrades are typically accompanied by technical documentation, audit reports, and impact assessments to ensure transparency. Community members are encouraged to review and discuss proposed upgrades before casting their votes. Once approved, the development team proceeds with implementation, ensuring the changes are executed safely and efficiently.

2. Economic Adjustments

Economic decisions play a crucial role in maintaining the protocol's financial stability. Governance participants may propose changes to various economic parameters to ensure the protocol remains resilient under changing market conditions. Some common economic adjustments include:

• Yield-Sharing Rates: Revising the rates at which staking rewards, liquidity provider incentives, and governance rewards are distributed. Adjustments may be necessary to optimize capital allocation and maintain competitiveness.
• Burning Fees: Proposing changes to burning fees for USST tokens, influencing supply management and price stability.
• Collateralization Ratios: Adjusting the collateral requirements for borrowing USST or maintaining stability in volatile market conditions.
• Interest Rates: Modifying interest rates for lending and borrowing activities to reflect market conditions and ensure sustainable protocol growth.

Economic adjustment proposals are typically supported by detailed financial models and market analysis, allowing the community to make informed voting decisions.

3. New Asset Onboarding

Expanding the range of acceptable collateral is a significant governance responsibility. Proposals for new asset onboarding are submitted when the community or Risk Committee identifies suitable assets for inclusion. These proposals typically involve:

• Collateral Evaluation: Assessing the asset's liquidity, volatility, historical performance, and market capitalization.
• Risk Assessment: Analyzing the potential risks associated with the asset, including price manipulation, regulatory risks, or technological vulnerabilities.
• Oracle Integration: Ensuring reliable price feed integration using secure oracle networks for real-time market data.
• Liquidity Considerations: Determining if the asset has sufficient market depth to ensure safe liquidation in case of borrower defaults.

Once approved, the new asset is integrated into the protocol’s smart contracts, allowing users to deposit it as collateral and participate in the ecosystem.

4. Community Initiatives and Grants

STBL encourages community-driven innovation by allocating funds for community initiatives and ecosystem development. Governance proposals may request grants for projects that contribute to the growth and enhancement of the protocol. These initiatives include:

• Development Grants: Supporting developers building new dApps, integrations, or protocol enhancements.
• Partnership Proposals: Forming strategic partnerships with other DeFi protocols, exchanges, or financial institutions.
• Educational Campaigns: Funding workshops, tutorials, or research that promotes user adoption and protocol awareness.
• Hackathons and Competitions: Encouraging innovation through events that bring developers and innovators into the ecosystem.

The community evaluates these proposals based on their feasibility, long-term impact, and alignment with the protocol’s mission. Successful initiatives are monitored through transparent reporting to ensure proper use of funds.

5. Emergency Decisions

In exceptional situations, the governance system can initiate emergency voting resolutions to respond quickly to critical events such as:

• Security Breaches: Implementing immediate smart contract upgrades or protocol shutdowns to prevent further damage.
• Market Crashes: Adjusting collateral requirements or liquidation mechanisms to stabilize the system.
• Oracle Failures: Switching to backup or alternative oracle providers to restore reliable price feeds.

Emergency decisions are typically fast-tracked, with shortened voting periods to ensure swift action. In some cases, pre-approved governance councils may execute temporary actions until a full community vote is completed.

Voting Process for Other Resolutions

The process for submitting and voting on proposals follows these key steps:

1. Proposal Submission: Any eligible community member can submit a proposal on the governance platform, providing detailed documentation, rationale, and supporting data.
2. Review and Discussion: The proposal enters a review phase where the community discusses its merits, potential risks, and long-term impact. Feedback is encouraged to refine the proposal.
3. Voting Period: Once finalized, the proposal moves to the voting stage, where token holders cast their votes using the One Vote Per Holding mechanism.
4. Quorum and Approval: A minimum participation threshold (quorum) is required for the vote to be valid. The proposal is approved if it receives a majority of the votes in its favor.
5. Implementation: Upon approval, the development team executes the necessary changes. For economic or collateral adjustments, relevant parameters are updated within the smart contracts.

The STBL’s governance system is designed to remain adaptive, inclusive, and community-driven. By allowing other voting resolutions to be presented and addressed at any time, the protocol can effectively respond to evolving market conditions and community needs. Whether it’s implementing technical upgrades, refining economic parameters, onboarding new assets, or supporting ecosystem growth, token holders play a pivotal role in shaping the protocol’s future.

Through transparent, on-chain voting and active community participation, the STBL continues to foster a resilient and thriving decentralized ecosystem.