# Governance

### Introduction <a href="#introduction" id="introduction"></a>

The Renec Lend Community is a decentralized collective of token holders and contributors who collaboratively shape the protocol's future through a structured governance process. This community-driven approach empowers participants to propose, discuss, and vote on key changes, promoting that the protocol's evolution reflects the collective interests of its members.

To ensure transparency, fairness, and community-driven development, Renec Lend has employed a decentralized governance model, where decisions are made collectively by the staked [RELEND token](https://renec-lend.gitbook.io/documents/governance/governance-token-relend-rel) holders.&#x20;

### Governance token: RELEND

The RELEND token serves as the primary governance token for Renec Lend Governance. Token holders must [stake at least 1 RELEND token](https://renec-lend.gitbook.io/documents/staking) to participate in the governance process. Staked tokens grant voting power, proportional to the amount staked.

### **Governance Structure**

#### **Staking and Voting Power**

* **Staking:** To participate in governance, users must [stake their RELEND tokens](https://renec-lend.gitbook.io/documents/staking) in the designated staking contract.
* **Voting Power:** Staked RELEND tokens grant voting power. The more tokens staked, the greater the voting power.

<figure><img src="https://3324497050-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fp9Ditp1lHQo3QN6VDglp%2Fuploads%2Fyvwz2SuFXwaiJfYlplVg%2Fimage.png?alt=media&#x26;token=320a8430-3161-487b-87d3-0efe815a43db" alt=""><figcaption></figcaption></figure>

#### **Governance Proposals**

Governance proposals are the proposals collected from Renec Lend community and created by RENEC Foundation. Proposal can cover a wide range of topics, including but not limited to:

* **Protocol Parameters:** Adjusting interest rates, loan-to-value ratios, and other parameters.
* **Fee Structure:** Modifying fees charged for borrowing, lending, and other protocol activities.
* **Protocol Upgrades:** Implementing new features, improving security, and optimizing performance.
* **Treasury Management:** Allocating funds for development, marketing, and community initiatives.
* **Emergency Measures:** Responding to unforeseen circumstances and making critical decisions.

A proposal can only pass if it meets these requirements:

* Min execution vote weight: the minimum vote weight to execute the proposal => requires 10,000 vote weight
* Approval quorum: percentage of 'for' votes for a proposal to successfully pass => requires 60% on total votes
* Vote differential: percentage of  'for' votes needed over 'against' votes for a proposal to successfully pass => requires 1%

List of proposal status:

* Voting: proposal is open for voting
* Canceled: proposal does not meet Min execution power + reach End date
* Defeated: proposal does not meet Minimum quorum or Vote differential + reach End date
* Passed: proposal meets all Min execution power, Minimum quorum and Vote differential + reach End date
* Executed: proposal has been executed

#### **Community Participation**

Active community participation is essential for the success of Renec Lend. Staked RELEND token holders are encouraged to:

* Stay informed about protocol developments and governance proposals.
* Participate in discussions and provide feedback on proposals.
* Vote on proposals to shape the future of the protocol.