5. Governance
Nexus Chain is governed by a progressively decentralized, on-chain governance model designed to ensure that protocol evolution is community-driven, secure, and reputation-weighted.
The governance system is powered by a dual-layer model that combines NEX token voting rights with NFT-based reputation scoring, allowing both capital and contribution to influence decision-making. It controls everything from protocol upgrades and economic parameters to treasury allocation and ecosystem grants.
5.1 Governance Model
Nexus Chain follows a DAO-based on-chain governance architecture, implemented through smart contracts and enforced at the protocol level.
On-chain Proposals: Any qualified stakeholder (NFT Tier Silver or above, or token holder with sufficient stake) can submit proposals for network changes, economic policy adjustments, or community initiatives.
Community Voting: Proposals are voted on by token holders and NEX credentialed users.
Validator Endorsement: For protocol-level changes, validators must also confirm proposals for activation.
Multi-tier Framework: Voting power is derived from both NEX token holdings and NFT-based reputation multipliers, ensuring balanced influence.
5.2 Governance Flow
Proposal Creation
Eligibility:
≥10,000 NEX tokens staked, or
NFT Silver Tier or higher
Proposal types:
Protocol upgrade
Treasury allocation
New dApp grant approval
Parameter changes (e.g., staking rate, bridge fees)
Community Review Period
Public review window: 5–7 days
Community discussion via forums, governance dApp, and AITOK governance stream
Voting Period
Duration: 5–10 days
Minimum quorum: Defined as a percentage of circulating NEX + active NFT holders
Validator Confirmation
Once passed, protocol-level changes must be endorsed by ≥⅔ of active validators
Execution
Approved proposals are queued and executed via governance smart contracts
5.3 Treasury & Funding
Governance also controls the Nexus Treasury, which is funded through:
Network transaction fees (in NEX or NUSD)
RWA marketplace revenue (from Taobit)
Validator commission sharing
Treasury staking rewards
Treasury funds are used for:
Grants to dApp developers
Community events, education, and global outreach
Protocol R&D and core team growth
Strategic investments into ecosystem infrastructure
All spending is proposed, approved, and recorded on-chain.
5.4 Upgrade & Fork Management
All protocol upgrades follow a governance-first upgrade framework:
Soft Upgrades: Minor upgrades approved through standard proposals and validator endorsement
Hard Forks: Major changes (e.g., VM swap, consensus update) require:
≥66% NEX + NFT vote approval
≥80% validator consensus
≥1 week advance notice via official channels
Emergency governance proposals can be fast-tracked in case of critical bugs or security risks
5.5 Governance Roadmap
Nexus Chain will follow a progressive decentralization path:
Phase 1
Core team + selected validator council
Phase 2
On-chain DAO with proposal framework
Phase 3
NEX-weighted governance & full treasury control
Phase 4
Fully decentralized governance with open validator elections, public protocol ownership
Conclusion
Governance in Nexus Chain is not a checkbox — it’s a living system of checks and balances, designed to empower real contributors, protect protocol integrity, and guide the ecosystem’s evolution in alignment with the values of decentralization, transparency, and meritocracy.
By combining token-based voting and soul-bound reputation weighting, Nexus Chain delivers a new governance standard for Layer 1 ecosystems.
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