# Governance

## What is the Liqwid DAO?

Liqwid DAO is a community of members that propose improvements to the Liqwid protocol and function as a Decentralized Autonomous Organization via onchain delegation, staking and proposal voting. It functions like a general assembly, where all shareholders of a corporation can submit proposals and vote on parameter changes. LQ tokens that have been staked (deposited in the Liqwid governance smart contract) unlock 1:1 voting power in the DAO. Each user has the choice to vote themselves or delegate their voting power to a Cardano wallet of their choosing.\
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\*Only LQ tokens staked in the Liqwid DAO's governance smart contract instance can use their voting power to delegate or cast a vote.

Proposal topics can range from new market launches or any other protocol parameter update. The Liqwid DAO also votes to determine the use of the treasury to finance improvement of the protocol or community ecosystem.

## Agora - The governance smart contract module

Governance actions and updates in the Liqwid protocol are proposed and voted on by LQ governance token holders. [Agora governance module](https://github.com/Liqwid-Labs/agora) (including delegation and voting) and the [LQ](https://cardanoscan.io/token/da8c30857834c6ae7203935b89278c532b3995245295456f993e1d244c51)  DAO Token are the fundamental components of Liqwid DAO governance through which protocol changes are initiated. Collectively these onchain mechanisms enable the Liqwid ecosystem to delegate voting power, propose protocol changes, vote and execute updates via the Governor contract.\
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Liqwid Improvement Proposals (LIPs) can modify the protocol's economic or governance parameters, whitelist new markets, or introduce completely new features to the protocol.

## Submit a proposal 

Proposals are submitted and discussed in the [Liqwid DAO governance forum](https://gov.liqwid.finance/). After sufficient discussion, polling and community feedback period a proposal is advanced to onchain voting.

*  “Liqwid Improvement Proposals” (LIPs) are a path to change the functioning code or parameters as decided on by the majority vote of LQ delegates and stakers.
* A dedicated [governance forum](https://gov.liqwid.finance/) has been setup for the LQ community to voice governance ideas and collectively decide the future of the Liqwid protocol and ecosystem.

### Voting

You can participate in any active vote by voting directly or delegating your voting rights to the Cardano address of your choice. If you receive voting power through delegation, you can vote with the full voting power of your wallet's aggregated LQ delegation.

<figure><img src="/files/JPKKHO812K8a2zRrCyOS" alt=""><figcaption></figcaption></figure>

## Executing a successful proposal vote action

Proposals are considered successful and may be executed if 50.0001% of the votes submitted are in favor of the proposal.


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