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Governance

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Last updated 1 month ago

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What is Nexus Governance?

The Nexus Protocol is governed by the ZBU token holder community through procedures, voting, and smart contract execution, collectively known as Nexus Governance.

All instances of the Nexus Protocol are governed by the ZBU token holders on Ethereum.The guide details the proposal lifecycle from idea to execution, which includes phases for discussion → temp check voting → onchain voting and execution.

What do I need to vote?

In order to vote you need to have ZBU, or zZBU(ZBU supplied to Ethereum V2 market) tokens on Ethereum mainnet. Voting power is the sum of token balances and incoming delegations.

How do I vote?

Voting occurs through Nexus Governance smart contracts. There are interfaces that can be used to access voting such as Tally governance interfaces.

What is the voting threshold?

The threshold is dynamic and can change based on the quorum + differential of votes for/against an AIP.

If there are very few votes against an AIP, the threshold will remain the same. However, if the votes against the AIP are more substantial, then the threshold can be moved up so there must be more votes in favor for the AIP to pass. This is to validate that an AIP has overwhelming approval before it is implemented.

For example:

  • If the quorum is 20%, the differential is 15% and 2% of the total votes are against the AIP, the threshold would remain at 20% (because 15+2 = 17 < 20).

  • If the quorum is 20%, the differential is 15% and 6% of the total votes are against the AIP, then the threshold would be raised to 21% (because 15+6=21), so more "yae" votes would be required for the AIP to pass.

What is Nexus Treasury?

The Nexus Treasury is a smart contract instance on each network where the protocol is deployed, controlled by Nexus Governance. Each borrowable reserve in an Neuxs market has a parameter called reserve factor, which is the percentage of borrow interest accumulated to the treasury and is determined on a per-asset basis by Nexus Governance.

Is it mandatory to participate in the Nexus Governance?

Participation in Nexus Governance is optional. Users can access the Nexus Protocol without participating in governance.

Governance Process