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Role of USST in Governance

The USST token is the core governance asset of STBL, empowering holders to participate in protocol decision-making, treasury management, and ecosystem growth. It ensures a decentralized and community-driven governance structure, giving users control over key operational aspects​.

1. Governance Participation through USST​

USST token holders can:

  • Propose and vote on key protocol changes, including:
    • Fee structures for minting and staking.
    • Collateral policies for RWAs.
    • Smart contract upgrades for enhanced security.
  • Stake USST to participate in governance and earn a share of protocol rewards.
  • Delegate voting power to representatives, enabling a liquid governance model where decisions reflect community interests.

This governance model ensures transparency, decentralization, and long-term sustainability.

2. USST Staking & Voting Power​

Governance participation is incentivized through a staking-based voting model, where:

  • Users can lock USST tokens to earn higher voting power and governance rewards.
  • Time-locked staking derivatives (sUSST) amplify governance influence, granting multiplied voting rights based on lock-up duration.

This approach aligns long-term token holders with the protocol's success, ensuring governance decisions prioritize ecosystem stability.

3. Treasury Oversight & Community Control​

A portion of protocol fees and revenue is allocated to a community-governed treasury, which is managed through USST governance votes.

  • The community decides on treasury allocations for:
    • New asset vaults and ecosystem growth.
    • Liquidity incentives for stablecoin adoption.
    • Protocol security and risk management.

Through this DAO-driven financial oversight, STBL ensures transparent fund distribution and long-term sustainability.

4. Decentralization through Delegated Governance​

To ensure broad governance participation, STBL allows delegated staking, where:

  • Users can assign their voting power to trusted representatives.
  • Delegates actively vote on behalf of the community while maintaining decentralized decision-making.