GOVERNANCE PRINCIPLES
The Core Values That Guide Every Voting Decision
Principles Over Politics
In the Star Cluster universe, Oversight operates according to a principle-based ethical framework rather than rigid rules or political allegiances. This same approach guides my governance participation in web3 protocols.
Principles provide a consistent foundation for decision-making while allowing for contextual adaptation to specific circumstances. They enable predictable voting patterns without dogmatic rigidity, ensuring delegates remain accountable to their values while responding to evolving protocol needs.
The principles outlined below represent my governance philosophy—the lens through which I evaluate every proposal and the commitments I make to those who delegate their voting power to me.
Core Governance Principles
The fundamental values that guide all voting decisions
Security Above All
No feature, efficiency improvement, or growth initiative justifies compromising the security of user funds or protocol integrity. Security considerations must be the primary filter through which all proposals are evaluated.
In Practice:
- Voting against proposals that haven't undergone thorough security audits
- Supporting conservative risk parameters with appropriate safety margins
- Advocating for circuit breakers and pause mechanisms
- Prioritizing gradual parameter adjustments over dramatic changes
Star Cluster Parallel:
In the Star Cluster, Oversight witnessed how security compromises made for convenience or efficiency inevitably led to exploitation. Once breached, trust was nearly impossible to fully restore.
User Protection
Protocols should be designed and governed to protect users, especially those with less technical knowledge or smaller holdings. Complexity should be abstracted away while maintaining transparency about risks.
In Practice:
- Supporting clear risk disclosures and user-friendly interfaces
- Advocating for safety mechanisms that protect against user errors
- Voting against predatory mechanisms that exploit information asymmetry
- Prioritizing proposals that improve accessibility without compromising security
Star Cluster Parallel:
Oversight's core mission began when he witnessed the exploitation of vulnerable colonists by corporate interests who used information asymmetry and technical complexity as weapons.
Decentralization Preservation
The core value proposition of web3 is permissionless participation and resistance to capture. Governance decisions should preserve and enhance these properties rather than introducing centralization vectors.
In Practice:
- Opposing proposals that concentrate power in the hands of insiders
- Supporting the minimization of privileged roles and admin keys
- Advocating for diverse validator/node operator sets
- Voting against changes that introduce regulatory capture vectors
Star Cluster Parallel:
The Nexus Corporation's control over the Cluster began with small "temporary" centralizations that were never reversed, gradually accumulating until they had effective control over critical infrastructure.
Long-term Orientation
Governance decisions should prioritize long-term protocol health over short-term token price impact or temporary advantages. This includes treasury management, tokenomics, and protocol parameter adjustments.
In Practice:
- Supporting sustainable treasury management with diversified assets
- Voting against short-term incentives that create long-term liabilities
- Advocating for gradual, sustainable growth over boom-bust cycles
- Prioritizing protocol resilience over temporary market advantages
Star Cluster Parallel:
The Nexus Corporation's focus on quarterly profits and shareholder returns ultimately undermined its resilience during the Resource Crisis, while long-term oriented settlements weathered the storm.
Inclusive Governance
Governance systems should enable participation from all stakeholders, not just those with the largest token holdings. Mechanisms that amplify diverse voices and prevent plutocracy are essential for long-term legitimacy.
In Practice:
- Supporting delegation systems that maintain accountability
- Advocating for quadratic voting or other anti-plutocratic mechanisms
- Voting for improved governance interfaces and educational resources
- Prioritizing transparent proposal development and discussion processes
Star Cluster Parallel:
The Outer Rim Coalition thrived because it incorporated perspectives from all member settlements, creating solutions that addressed diverse needs rather than just majority interests.
Controlled Innovation
Protocol evolution is necessary but must be managed carefully. New features should be introduced incrementally with appropriate testing, security audits, and fallback mechanisms.
In Practice:
- Supporting phased implementation of complex features
- Advocating for comprehensive testing and security audits
- Voting for proposals with clear rollback mechanisms
- Prioritizing battle-tested approaches over experimental designs for critical functions
Star Cluster Parallel:
The most successful technologies in the Star Cluster were those that evolved methodically through iterative improvement, not those that attempted revolutionary but untested leaps.
Principles in Action
Case studies demonstrating how principles guide real governance decisions
Case Study: Treasury Diversification
Scenario:
A proposal to diversify the protocol treasury from 100% native tokens to a mix of stablecoins, ETH, and native tokens. The proposal aimed to reduce treasury volatility and ensure operational runway during market downturns.
Principles Applied:
- Long-term Orientation: Reducing treasury volatility supports sustainable operations
- Security Above All: Diversification reduces the risk of catastrophic treasury depletion
Decision:
Voted in favor, but with an amendment to implement the diversification gradually over 6 months rather than immediately, reducing market impact and allowing for adjustment if needed.
Outcome:
The amended proposal passed and was implemented. When the market experienced a significant downturn three months later, the protocol maintained operations without emergency measures, unlike competitors who had to slash budgets and sell tokens at depressed prices.
Case Study: Parameter Adjustment
Scenario:
A proposal to significantly increase the maximum leverage available on the platform from 5x to 20x, aiming to compete with centralized exchanges and attract more trading volume and fee revenue.
Principles Applied:
- Security Above All: Higher leverage increases liquidation risks and potential for cascading failures
- User Protection: Higher leverage disproportionately harms less sophisticated users
- Controlled Innovation: Parameter changes should be incremental and carefully monitored
Decision:
Voted against the proposal as presented, but offered an alternative approach: incrementally increase leverage limits (to 7x, then 10x, then 15x) with mandatory review periods between increases to assess market impact and liquidation rates.
Outcome:
The original proposal was defeated. A revised proposal following the incremental approach was later submitted and approved. After the first increase to 7x, liquidation rates rose significantly, leading to improvements in the liquidation engine before further increases were implemented.
Case Study: Governance Structure
Scenario:
A proposal to create a "council" of 7 members with enhanced voting power and the ability to fast-track certain proposals, ostensibly to improve governance efficiency and response times.
Principles Applied:
- Decentralization Preservation: Council structure creates centralization vector
- Inclusive Governance: Enhanced voting power undermines equal participation
Decision:
Voted against the proposal and worked with community members to develop an alternative that addressed efficiency concerns without centralizing power: a delegate-driven "temperature check" system that could accelerate proposal timelines when sufficient delegate support existed.
Outcome:
The council proposal was defeated. The alternative temperature check system was later implemented and successfully reduced governance latency while maintaining broad participation.
Principles Evolution
How governance principles adapt while maintaining core values
While principles provide a consistent foundation for governance decisions, they must evolve as the ecosystem matures and new challenges emerge. This evolution is not about abandoning core values but refining their application to changing circumstances.
In the Star Cluster universe, Oversight's ethical framework evolved through experience and adaptation, becoming more nuanced while maintaining its fundamental purpose. Similarly, my governance principles undergo continuous refinement through:
Retrospective Analysis
Regular review of past voting decisions and their outcomes, identifying where principles were correctly applied and where refinements are needed. This includes both successful and unsuccessful governance actions.
Community Feedback
Active engagement with delegators and the broader community to understand their perspectives and incorporate diverse viewpoints into principle refinement. This includes regular governance office hours and feedback sessions.
Ecosystem Monitoring
Continuous observation of governance trends, security incidents, and protocol developments across the ecosystem to identify emerging challenges and best practices that should inform principle evolution.
Principle Balancing
Refining how principles are balanced when they come into tension with each other, developing more nuanced frameworks for resolving conflicts between competing values in complex governance decisions.
This evolutionary approach ensures that governance principles remain relevant and effective while maintaining the consistent values that delegators rely on. Any significant evolution in principle application is transparently communicated to delegators before implementation.
"Principles without adaptation become dogma; adaptation without principles becomes opportunism. The challenge of effective governance is maintaining core values while evolving their application to meet emerging challenges."
Accountability & Transparency
How principles translate to delegate accountability
Vote Explanations
Every governance vote is accompanied by a detailed explanation of the reasoning behind the decision, explicitly referencing which principles were applied and how they were balanced in cases of tension.
These explanations are published on-chain where possible and always documented in the voting history section of this platform, creating a permanent record of governance decisions and their rationales.
Regular Reporting
Quarterly governance reports summarize all voting activity, principle applications, and outcomes, providing delegators with a comprehensive overview of governance participation.
These reports include metrics on voting patterns, principle application frequency, and areas where principle refinement may be needed based on observed outcomes.
Delegator Engagement
Regular governance office hours provide opportunities for delegators to discuss upcoming proposals, ask questions about past votes, and provide feedback on principle application.
A dedicated governance forum enables asynchronous discussion of governance matters, ensuring delegators can engage regardless of time zone or availability.
Principle Violations
In the rare case where a vote must be cast that appears to contradict stated principles, a special explanation is provided detailing the exceptional circumstances and the higher-order principles that necessitated the deviation.
These explanations are prominently highlighted to ensure transparency and maintain delegator trust even when difficult trade-offs must be made.
Delegation is fundamentally based on trust, but trust requires verification. These accountability mechanisms ensure delegators can verify that their governance power is being used in accordance with the principles they endorsed when delegating.
Align Your Governance Voice
If these principles resonate with your vision for web3, consider delegating your voting power to ensure your tokens contribute to governance even when you can't actively participate.