Governance & DAO

Pocket Network is governed by its community through the Pocket DAO — a decentralized autonomous organization that controls protocol parameters, treasury, and strategic direction. Governance is not a formality; it is how the network evolves. PIP-41 (deflationary mechanics), F-Chains II (long-tail chain coverage), and the Shannon upgrade itself were all enabled by DAO governance.

The Governance Structure

BodyRole
Pocket DAOSets protocol parameters, controls the treasury, approves strategic changes via community vote
Pocket Network Foundation (PNF)Implements DAO decisions, operates infrastructure, manages partnerships, stewards ecosystem growth

PNF implements what the DAO decides. The DAO cannot force PNF to take actions outside its mandate, and PNF cannot implement major protocol changes without DAO approval.

Who Can Vote

Pocket Network uses a Proof-of-Participation model — governance power is earned through contribution, not purchased. Under the CREDS system (PIP-37, 2024), the DAO has two Houses:

HouseWeightVoting ModelWho Qualifies
Builder House80%One-person-one-voteVerified contributors to the protocol, ecosystem tools, community
Staker House20%Stake-weighted (√)Node operators, liquidity providers, gateway operators

Voting happens on Snapshot. To participate, you need to earn Builder or Staker Credentials through contributions.

What the DAO Votes On

Proposal TypeScopeExamples
PIP (Improvement)Protocol changes, governance structurePIP-41 deflation, Shannon upgrade
PEP (Ecosystem)Funding, ecosystem investment, grantsPNF budget, F-Chains II
PUP (Parameters)On-chain parameter changesCUTTM adjustments, mint ratio

Token Logic Modules — Governance Without Hard Forks

Shannon’s TLMs are modular, independently adjustable components of the protocol’s economics. Before Shannon, changing a parameter required a software upgrade (hard fork). Under Shannon, the DAO can change many parameters through a simple on-chain governance vote — making governance dramatically more responsive.

What’s in This Section

Key Resources

In this section