# Governance

## **Introduction to Venn Governance**

The Venn Security Network's governance framework is designed to ensure transparency, decentralization, permissionless, and active community participation. Our phased approach to governance allows us to transition smoothly from centralized control to full decentralization, empowering the Venn ecosystem to shape the network’s future.

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## **Governance Phases**

### **Phase 1: Centralized Governance** by the Venn Foundation (`Current phase)`

Initially, the Foundation's core team will manage the governance of the Venn Security Network to ensure its stability and security. During this phase, the core team handles all key responsibilities, including software updates, emergency fixes, and treasury management.

### **Phase 2: Security Council** 

Once the network stabilizes, a Security Council comprising selected members will take over certain governance responsibilities. The Security Council will handle emergency fixes, non-emergency maintenance, dispute resolution, and slashing events while overseeing routine operations and upgrades.

### Phase 3: Full On-Chain Governance 

In this final phase, all governance activities transition to full on-chain governance, ensuring complete decentralization and ecosystem control. The Security Council remains crucial in addressing disputes and managing slashing events while the ecosystem takes the lead in decision-making.

## Governance Phases Responsibilities

<table data-full-width="true"><thead><tr><th width="320.5">Subject of Onchain Voting Proposal</th><th>Phase 1 </th><th>Phase 2</th><th>Phase 3</th></tr></thead><tbody><tr><td>Software Changes and Upgrades</td><td>Foundation</td><td>Security Council, Foundation</td><td>Venn DAO</td></tr><tr><td>Emergency Fixes</td><td>Foundation</td><td>Security Council, Foundation</td><td>Security Council</td></tr><tr><td>Non-Emergency Fixes</td><td>Foundation</td><td>Security Council, Foundation</td><td>Security Council, Venn DAO</td></tr><tr><td>Treasury</td><td>Foundation</td><td>Foundation</td><td>Foundation, Venn DAO</td></tr><tr><td>Dispute Resolution</td><td>Foundation</td><td>Security Council</td><td>Security Council</td></tr><tr><td>Fees</td><td>Foundation</td><td>Security Council, Foundation</td><td>Venn DAO</td></tr><tr><td>Rewards</td><td>Foundation</td><td>Security Council, Foundation</td><td>Venn DAO</td></tr><tr><td>Slashing</td><td>Foundation</td><td>Security Council, Foundation</td><td>Security Council</td></tr><tr><td>Funding</td><td>Foundation</td><td>Foundation</td><td>Venn DAO</td></tr></tbody></table>

### Proposal Subject Definition:

1. **Software Changes and Upgrades:** Involves implementing updates and improvements to the network's software.
2. **Emergency Fixes:** Actions to immediately address and rectify critical vulnerabilities or threats.
3. **Non-emergency fixes:** Routine maintenance and minor upgrades to ensure the network runs smoothly.
4. **Treasury:** Management of the network's funds and financial resources.
5. **Dispute Resolution:** Handling conflicts and issues that arise within the network.
6. **Fees:** Determining and collecting fees from network participants.
7. **Rewards:** Distribution of incentives to participants who contribute positively to the network.
8. **Slashing:** Penalties imposed on participants who act maliciously or negligently.
9. **Funding:** Allocation of financial resources for various projects and operations within the network.

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## Next Steps

As we progress towards full decentralization and permissionless state, our next steps involve detailing the on-chain governance mechanisms. We will publish the on-chain constitution, which will outline the rules and principles governing the Venn Security Network. Additionally, we will publish the quorum requirements for each proposal type, clearly defining the proposal processes.


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