DAO

The governance token FED is crucial to the decentralization of the Taichi Protocol. The governance mechanism of the Taichi Protocol is DAO. Holders of the governance token can participate in the protocol by proxy vote, and the FED controls the governance token of the DAO.

Once the proposal is approved or canceled, the process of "suggest → queuing → execute" will be followed. The governance protocol can control the following actions:

• Mint coins and burn contracts;

• Adjust the reward ratio when pegged price is restored;

• Adjust relevant rates and market incentives;

• Vote with governance tokens.