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Governance

Governance Overview​

Fuseon operates under a decentralized governance model powered by veFUS (vote-escrowed FUS) tokens. This system ensures that long-term stakeholders have the greatest influence over protocol decisions.

veFUS Voting System​

Obtaining veFUS​

  1. Lock FUS tokens for a period between 1 week and 4 years
  2. Receive veFUS NFT representing your voting position
  3. Voting power is proportional to amount locked and time remaining

Governance Powers​

veFUS holders can vote on:

  • Emission Distribution: Direct weekly FUS emissions to specific liquidity pools
  • Protocol Parameters: Adjust fees, emission rates, and other protocol settings
  • Treasury Management: Approve spending from the protocol treasury

Voting Mechanics​

Gauge Voting​

Every epoch (1 week), veFUS holders vote to direct emissions:

  1. Vote with veFUS NFTs to allocate emission weights to pools
  2. Pool rewards are proportional to votes received
  3. Voters earn rewards: 100% of trading fees + bribes from voted pools

Proposal System​

For protocol changes:

  1. Proposal Creation: Requires minimum veFUS holding
  2. Voting Period: Standard 7-day voting window
  3. Execution: Successful proposals are implemented via timelock

Incentive Alignment​

Voter Benefits​

  • Trading Fees: 100% of fees from pools you vote for
  • Bribes: External rewards from protocols seeking votes
  • Rebase Rewards: Share of weekly emissions (15% of total)

Long-term Focus​

  • Lock Duration: Longer locks = more voting power
  • Skin in the Game: Voters are rewarded/penalized based on protocol success
  • Economic Security: Voting power tied to economic stake