Frax Governance Overview

Fully onchain, trustless, and decentralized governance based on Compound/OpenZeppelin Governor that controls Gnosis Safes

Motivation

Prior to Frax Governance, Frax Protocol operations were not fully decentralized. Most actions were taken by key Frax stakeholders through Gnosis Safes. The implied trust assumption was that the Frax stakeholders won’t act maliciously and external actors won’t force the stakeholders to execute malicious actions. With the introduction of Frax Governance, this trust assumption is removed and Frax Protocol is controlled by veFXS holders through onchain governance.

⚠️ (As of 10/2/2024) While the migration is ongoing, voting will be conducted through Snapshot on Frax's own Fraxtal chain. ⚠️

Major Components

Frax Governance

End State and Key Takeaways

The final state of Frax Governance will have full control of all major safes, giving veFXS holders the final say over everything in the protocol. veFXS holders can vote for or against all proposals and can replace Frax team members as owners on the underlying Safes and execute any action, if it reaches quorum and passes.

Frax team members have the ability to create optimistic proposals through FraxGovernorOmega which succeed by default. Typically proposals fail by default, but with Frax Governance, veFXS holders can vote for or against optimistic proposals as well. If an optimistic proposal reaches quorum and there are more against than for votes, the proposal will fail.