DAO Governance & Token Logic

Privacy governed. Community driven. Future proof.

Veilon isn't just a protocol it's a living ecosystem shaped by its community. Through a decentralized governance model, Veilon empowers users, builders, and contributors to actively guide its evolution.

Everything from protocol upgrades to relayer incentives, fee adjustments, and integration approvals are decided on-chain by the community with privacy-preserving mechanisms at the core.

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Governance Principles

Veilon's governance model is designed to reflect the values of privacy, decentralization, and sustainability.

Core principles include:

• Decentralized decision making No central authority. Every upgrade or parameter change is proposed, voted on, and approved by the community.

• Privacy-first participation Use shielded voting methods to participate anonymously, without linking wallet addresses to decisions.

• Incentive aligned proposals Proposers must hold and stake tokens, ensuring only committed members influence protocol direction.

• Sustainable treasury management Protocol fees, emissions, and reserves are governed by the DAO for long term health.

• Community control Veilon users can decide on:

  • Supported assets

  • Relayer incentives

  • Audit funding

  • Ecosystem grants

  • Future chain integrations

Veilon isn’t just community first it’s community controlled.

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Staking for Governance

Stake to shape the future.

To participate in governance whether it’s voting on proposals or submitting your own ideas users must stake the native Veilon token in the governance contract.

This ensures:

• Only long-term participants influence decisions

• Reduces spam or malicious proposals

• Creates aligned incentives across the ecosystem

No stake, no say. Every vote carries weight because every voter has skin in the game.

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How Voting Works

Here’s a simplified overview of the governance flow:

1. Proposal Creation

   • Anyone with a minimum stake can submit a proposal

   • Proposals can include: protocol upgrades, new feature funding, parameter changes, and treasury actions

2. Voting Begins

   • All token holders with staked tokens can vote

   • Veilon supports both shielded voting (private) and public voting methods

3. Quorum & Thresholds

   • A minimum percentage of the total staked token supply must vote for the proposal to be valid

   • Quorum and pass thresholds are configurable by the DAO

4. Execution Timelock

   • Once passed, the proposal is placed in a time-delay queue

   • This gives the community time to audit or prepare for changes

5. OnChain Execution

   • After the timelock, the proposal is executed automatically on-chain

   • Results are transparent and irreversible

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Privacy in Governance

Traditional on-chain voting often exposes voter identity, wallet balances, and participation history. Veilon’s governance system flips that by supporting:

• Shielded voting keys — vote without exposing your wallet

• Private proposal support — proposals can be drafted and reviewed anonymously

• Merkle-based voter rolls — ensure eligibility without revealing who’s on the list

In Veilon, even your vote is protected. No surveillance. No retaliation. Just pure governance.

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Utility of the Native Token

Veilon's native token isn't just for governance. It powers multiple aspects of the ecosystem:

• Staking for governance & relayer reputation

• Paying optional protocol fees (gasless via relayers)

• Accessing premium compliance modules (PoI, audit layer)

• Rewards for DAO contributors, relayers, and liquidity supporters