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Protocol Governance

This document outlines the governance roles and responsibilities in the Hokusai ecosystem.

Governance Roles​

1. Token Reward Management​

Governance is responsible for setting and adjusting the parameters that control how contributors are rewarded for model improvements:

  • Minimum Improvement Threshold: The smallest measurable improvement that qualifies for rewards
  • Maximum Reward Cap: The upper limit on tokens that can be earned per improvement
  • Cooldown Periods: Time restrictions between improvements to prevent gaming
  • Reward Multipliers: Factors that adjust reward amounts based on improvement significance

These parameters ensure that rewards are:

  • Fair and proportional to contribution
  • Sustainable for the protocol
  • Resistant to manipulation
  • Aligned with protocol goals

2. Token Supply Management​

Governance controls the token supply parameters to maintain protocol stability:

  • Inflation Controls: Maximum annual token creation limits
  • Initial Supply Rules: Guidelines for new model token allocations
  • Vesting Schedules: Time-based release of tokens to prevent market disruption
  • Supply Caps: Maximum token supply limits

These controls ensure:

  • Predictable token economics
  • Sustainable growth
  • Market stability
  • Long-term value preservation

3. API Pricing Management​

Governance sets the pricing structure for model access:

  • Base Pricing: Standard rates for model access
  • Volume Discounts: Tiered pricing for high-volume users
  • Enterprise Pricing: Special rates for enterprise customers
  • Batch Processing: Discounts for bulk requests

Pricing decisions consider:

  • Market conditions
  • Competitor pricing
  • Protocol sustainability
  • User accessibility

4. Performance Evaluation​

Governance defines how model performance is measured and evaluated:

  • Metric Selection: Choosing which performance indicators to track
  • Weight Assignment: Determining the importance of each metric
  • Confidence Thresholds: Setting minimum reliability standards
  • Evaluation Periods: Defining how often performance is assessed

These parameters ensure:

  • Fair and accurate performance measurement
  • Consistent evaluation standards
  • Reliable improvement tracking
  • Quality maintenance

Governance Process​

1. Proposal Creation​

Any token holder can create proposals to modify protocol parameters. Proposals must include:

  • Clear description of the proposed changes
  • Rationale for the changes
  • Expected impact
  • Implementation timeline

2. Voting Process​

Token holders can vote on proposals based on their token balance:

  • One token equals one vote
  • Voting power is locked during the voting period
  • Votes can be changed until the voting period ends
  • Minimum participation thresholds must be met

3. Implementation​

Approved proposals are implemented through a controlled process:

  • Changes are reviewed by technical experts
  • Implementation is staged to minimize risk
  • Changes are monitored for effectiveness
  • Rollback procedures are available if needed

Emergency Controls​

1. Protocol Pause​

In emergency situations, governance can:

  • Pause specific protocol functions
  • Freeze parameter changes
  • Halt token transfers
  • Suspend model access

2. Emergency Updates​

Critical updates can be implemented through:

  • Emergency proposals
  • Accelerated voting periods
  • Reduced quorum requirements
  • Immediate execution

Governance Parameters​

Voting Requirements​

  • Minimum proposal threshold
  • Standard voting period
  • Required quorum
  • Execution delay period

Emergency Thresholds​

  • Emergency proposal requirements
  • Emergency voting period
  • Emergency quorum
  • Emergency execution delay

Next Steps​

For additional support, contact our Support Team or join our Community Forum.

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