veGRID Governance Specification

Tiered vote-escrow system for $GRID holder governance

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Overview

veGRID (vote-escrowed GRID) is a non-transferable governance token obtained by locking $GRID for a specified duration. Longer locks yield more voting power.

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Lock Tiers

Lock Duration	veGRID Multiplier	Tier Name	Powers
1 week	0.01x	Observer	Fee share only
3 months	0.25x	Voter	Betting pools
6 months	0.50x	Delegate	Grants, agent whitelisting
12 months	1.0x	Senator	Protocol params, treasury
24 months	2.0x	Sovereign	Tokenomics, protocol upgrades

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Calculation Logic

The veGRID balance is calculated on-chain to ensure time-decay is perfectly reflected.

On-Chain Calculation (Rust)

pub fn calculate_voting_power(locked_amount: u64, unlock_ts: i64, current_ts: i64) -> u128 {
    if current_ts >= unlock_ts { return 0; }
    
    let time_remaining = (unlock_ts - current_ts) as u128;
    let multiplier = get_multiplier(time_remaining); // e.g., 2.0x for 24mo
    
    // veGRID decays linearly as the unlock date approaches
    (locked_amount as u128) * multiplier * time_remaining / MAX_LOCK_TIME
}

Delegation & Governance (SDK)

import { GovernanceClient } from '@grid/governance-sdk';

const gov = new GovernanceClient(connection, wallet);

// Delegate voting power to a specialized Swarm Coordinator
await gov.delegate('Coordinator-01-Address');

// Check voting power for a specific proposal
const power = await gov.getVotingPower(proposalAddress);
console.log(`Available veGRID: ${power.toLocaleString()}`);

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Governance Powers by Tier

Tier 0: Observer

• Receive proportional fee share (0.5x multiplier)
• Read-only governance forum access

Tier 1: Voter

• Vote on community betting pools
• Receive betting gains (proportional)
• 0.75x fee share multiplier

Tier 2: Delegate

• All Tier 1 powers
• Vote on ecosystem grants
• Vote on agent whitelisting
• Can delegate votes to others
• 1.0x fee share multiplier

Tier 3: Senator

• All Tier 2 powers
• Vote on protocol parameters
• Vote on treasury allocations
• Submit governance proposals
• 1.25x fee share multiplier

Tier 4: Sovereign

• All Tier 3 powers
• Vote on tokenomics changes (within constitutional bounds)
• Vote on protocol upgrades (non-constitutional)
• Veto power (requires 10% of total veGRID)
• 2.0x fee share multiplier

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Community Betting Pools

veGRID holders (Tier 1+) can vote to allocate treasury funds to prediction markets.

Process

1. Proposal: Betting proposal submitted (max 5% treasury)
2. Vote: 7-day voting window, 20% quorum
3. Execution: Coordinator places bet via Polymarket/Drift
4. Settlement: Gains/losses distributed

Distribution

Outcome	Voters	Treasury	Dev/Ops
Win	70%	20%	10%
Loss	100%	0%	0%

Safeguards

• Max 5% treasury per bet
• 7-day cooldown between bets
• Hunter agent can emergency halt

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High-Level Governance

Thresholds

Action	Required Tier	Threshold	Timelock
Grant approval	Delegate	51%	72h
Protocol param	Senator	51%	72h
Fee change (±0.5%)	Senator	51%	7d
Fee change (>0.5%)	Sovereign	66%	14d
Burn rate change	Sovereign	66%	14d
Tokenomics change	Sovereign	75%	30d

⚠️ Constitutional Exclusion: The 5 Immutable Laws cannot be modified by governance. See CONSTITUTION.md for exclusions.

Exit Rights

• Ragequit: Any holder can exit with pro-rata treasury share
• Emergency pause: 10% Senator+ veGRID can trigger

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Fee Distribution

Sources

• 1% transfer fee (ops portion)
• Betting pool gains
• Agent subscription revenue

Formula

user_share = (user_veGRID / total_veGRID) × tier_multiplier × fee_pool

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Contract Architecture (Planned)

1. veGRID Locker - Lock GRID, calculate decaying veGRID
2. Governance Hub - Proposal creation, voting, execution
3. Betting Pool - Treasury allocation, oracle integration
4. Fee Distributor - Proportional fee claims

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V3.1: Arbitration Jury Duty

In V3.1, veGRID holders gain a new responsibility: Constitutional Arbitration.

Jury Selection

• 7 jurors randomly selected from Tier 2+ (Delegate+) veGRID holders
• Selection weighted by veGRID balance (higher stake = higher probability)
• Jurors who abstain lose a small portion of their fee share for that epoch

Incentives

Action	Reward
Serve as juror	+0.1% of dispute value
Vote with majority	+50 reputation
Vote against majority	-25 reputation
Abstain	-0.05% fee share for epoch

See CONSTITUTION.md for the full Arbitration process.

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Last Updated: February 2026 (V3.1)