Governance

A decentralized governance framework that empowers $AARK holders to influence the protocol’s evolution through on-chain voting and decision-making.

Introduction

The rise of blockchain technology has ushered in a new era of decision-making: on-chain governance. This approach enables stakeholders to directly shape the future of a protocol through direct voting, typically using a dedicated governance token. Proposed changes are encoded in smart contracts, and if the vote passes, the modifications are automatically implemented on the blockchain, ensuring transparency and immutability.

In contrast, off-chain governance relies on informal discussions and agreements. While flexible and adaptable, this method lacks the transparency and security of on-chain systems. Changes are implemented manually by developers, leaving room for potential manipulation and errors.

Key Differences Between On-Chain and Off-Chain Governance

Feature	On-Chain Governance	Off-Chain Governance
Decision-making mechanism	Direct voting through governance token	Informal social discussions and agreements
Implementation process	Automated execution via smart contracts	Manual implementation by developers
Transparency	High: all votes and changes are recorded on the blockchain	Low: limited visibility into decision-making
Security	High: blockchain ensures immutability and tamper-proof execution	Low: vulnerable to manipulation and errors
Flexibility	Moderate: requires proposal and voting process	High: changes can be quickly implemented

AARK Governance Structure

$AARK token holders have the power to directly influence the platform’s future through a robust governance system. This framework ensures that Aark evolves in alignment with community-driven objectives.

$AARK governance is structured around six core responsibilities:

A. Protocol Management

• Building, deploying, and updating core Aark protocols.

• Optimizing parameters such as liquidation thresholds, ecosystem allocations, rewards, fee structures, and audits.

• Implementing new products, including options, NFTs, listings, spot trading, and RWA.

• Approving incentives for contributors fostering Aark’s growth.

B. Ecosystem Oversight

• Qualifying new service providers to maintain ecosystem diversity and reliability.

• Enforcing penalties on service providers who fail to meet performance standards.

C. Financial Stewardship

• Approving $AARK grants for research initiatives, community development projects, and strategic partnerships.

• Managing the distribution of platform fees towards Aark’s treasury, development fund, and community initiatives.

D. Operational Excellence

• Implementing a bug bounty program to address vulnerabilities promptly.

• Responding to emergencies and unforeseen challenges to ensure platform stability and user security.

E. Staking and Ecosystem Benefits

Staking $AARK provides multiple benefits, which vary based on the amount staked.

1. Staking Rewards

   • Stakers of $AARK or esAARK receive $AARK staking rewards.

   • Trading fees and rewards may be used for trading competitions, buybacks, token burns, and airdrops.

2. esAARK Emissions

   • Stakers earn esAARK, which can be:

     • Staked to earn rewards at a 1:1 ratio with $AARK.

     • Vested for conversion into $AARK over time.

   • esAARK is non-transferable and converted into $AARK on a pro-rata per-block basis.

F. Community Engagement

• Facilitating open communication and collaboration within the Aark community.

• Incorporating community feedback into decision-making processes.

• Fostering a transparent and accountable governance environment that empowers $AARK holders.

Governance Voting Mechanism

Voting power is proportional to $AARK holdings, allowing active participation in shaping Aark’s future