> For the complete documentation index, see [llms.txt](https://usdu.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://usdu.gitbook.io/docs/governance/change-process.md).

# Change Process

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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.