Governance
$LOX is the governance token of LOXLEY. It controls the parameters that decide how the market layer behaves.
What governance actually controls
- The fee the protocol takes on distributed rewards.
- The delegation criteria operators must meet to receive stake.
- The tip distribution split between stakers, operators and the treasury.
- Which operators are admitted to the registry.
It does not control user funds. No vote can move a staker's principal, and no vote can change a position that a user opened for themselves.
How a proposal passes
Proposals are made and voted on onchain. A proposal needs a quorum of participating voting power and a majority in favour; parameter changes that affect fees carry a longer timelock than routine operations so that stakers can exit if they disagree.
Where the fees go
Protocol fees fund the treasury. The treasury pays for operator incentives, audits, and the public goods the layer depends on. Treasury movements above a threshold require a separate vote.
Voting without moving your position
Staked LOXETH keeps earning while it votes. You do not have to unstake to participate, and voting does not extend any unstaking period.