Governance Overview

Purpose and mission

The Savvy DAO is designed to follow a path of progressive decentralization, gradually ceding control of the protocol to the community. Our mission is to encourage self-regulation and policy management by utilizing both on-chain and off-chain tools.

Structure

The Savvy DAO is currently structured to facilitate decision-making through community proposals and voting. Proposals can be made and voted on by the by members of the DAO.

Decision making

Governance is measured in the voting power represented by the veSVY token, which is obtained by staking the SVY token.

Holders of veSVY tokens obtain membership in the Savvy DAO to participate in the decision-making process for the protocol. Decisions are made through a voting process and vote weight is proportional to the quantity of veSVY an address owns.

Token distribution and use

Savvy allowed open access for anyone to gain SVY tokens at inception to maximize the distribution of governance. The Liquidity Bootstrapping Pool was the first event for the SVY token and no SVY tokens were liquid before the LBP. Tokens are distributed and used within the Savvy DAO to facilitate decision-making and support the growth and development of the ecosystem.

Funding and growth

The Savvy DAO plans to generate revenue through yield harvesting from user deposits, trade fees, rewards, governance tokens from stable pools, and treasury management strategies. The Savvy DAO intends to grow and scale over time through the efforts of the community.

Core team influence

The core team only receives 11% of the governance token supply in a linear 6-year vest, which significantly weakens the influence of their voting power.

DAO development

It's worth noting that the governance structure of the Savvy DAO can evolve, so it's important to keep this document open to future changes, such as the possibility of subcommittees or other forms of decentralization, depending on the needs of the community.