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Approval Of Derivative Tokens Via Governance Resolution

The delegation of staking rights is not entirely unrestricted. For derivative tokens to be eligible for delegated staking, they must undergo a transparent and democratic approval process through the STBL’s governance system. This ensures that only reliable, well-audited, and trustworthy derivative token contracts are permitted within the ecosystem.

Approval Process Overview​

  1. Proposal Submission:

    • A proposal for the approval of a derivative token for delegated staking is submitted by a community member, developer, or project partner.
    • The proposal must include comprehensive information about the derivative token, including its smart contract architecture, security audits, and potential risks.

  2. Community Review and Discussion:

    • The proposal undergoes a public review period where token holders can discuss its merits and raise any concerns.
    • Security experts and developers may conduct additional assessments to ensure the proposed token meets the protocol’s standards.

  3. Voting Resolution:

    • Token holders participate in a governance vote using the One Vote Per Holding mechanism.
    • If the proposal gains majority approval, the derivative token is officially approved for delegated staking.

  4. Implementation:

    • Upon approval, the token's smart contracts are integrated with the STBL’s staking system.
    • Users can then delegate their staking rights through secure smart contracts using the approved derivative token.

This governance-driven approval process ensures transparency and maintains the integrity of the staking ecosystem. It also mitigates risks associated with malicious or vulnerable smart contracts, protecting the protocol and its users.