A core component of the Value Set Protocol is the ability to
safely upgrade the VSD contract; or
safely execute a transaction on behalf of VSD.
This ability can be used by the token holders to vote in changes to
the incentivize structure around the protocol; or
add, remove, or adjust peripheral functionality; or
add or remove pools and collateral assets; or
upgrade an external contract; or
transfer the treasury-controlled fund to a designated address, etc.
When the protocol launched, the protocol will implement a bicameral governance, where
bonded liquidity providers can propose/vote a proposal of an upgrade or a transaction execution;
once the proposal reaches the quorum, the governors are able to commit the upgrade or the transaction. Such a commit may require multi-signs from governors.
Note that once we enable value set share (VSS), we may transfer the voting power from bonded liquidity providers to bonded VSS holders.
There are two separate governance structures that that relate to the VSD protocol:
On-Chain protocol governance which effects the mechanics of the VSD token
Off-chain treasury governance which governs the funds set aside to foster the VSD community.