Change Process

The governance of USDU Finance is handled by the USDU Core DAO, which ensures transparent and decentralized management of the protocol. It governs how $USDu interacts with external markets, how minting modules are approved, and how protocol income is used.

Governance Process:

The USDU Core DAO can create and vote on two types of proposals:

• Standard Proposal:

  • If quorum is reached, the proposal is accepted at the DAO level.

  • If quorum is not reached, the proposal is declined.

• Timelock Proposal:

  • After submission, there is a 3-day veto window.

  • If no DAO Core Member vetoes the proposal within 3 days, it is accepted at the DAO level.

  • If vetoed, the proposal is declined.

If a proposal is accepted at the DAO level: It moves to the USDU Finance Protocol for final implementation:

1. The Curator (the USDU Core DAO itself) prepares the DAO-approved proposal for protocol-level implementation.

2. A Timelock period begins, allowing time for review and transparency before execution.

3. During this period, Guardians ($sUSDu holders) can exercise veto rights:

   • If Guardians veto the proposed implementation, it will not be executed.

   • If no veto occurs, the implementation proceeds and becomes live.

Governance Principles:

• Immutable Core Design: The fundamental architecture of $USDu is immutable. The DAO can only approve new modules and integrations. It cannot arbitrarily change the base design or user guarantees.

• Checks and Balances: The combination of DAO voting, time delays, and Guardian veto rights ensures thoughtful governance with multiple layers of protection.