Adaptable Governance and Network Management
Zypheria employs a multi-layered governance architecture to achieve a balance of efficiency, security, and decentralization
Zypheria leverages a customized DAO DAO contract framework to implement a multi-layered governance system. Within this structure, specialized committees manage day-to-day operations, making key operational decisions efficiently, while maintaining transparency and accountability to tokenholders through robust oversight mechanisms. This approach balances flexibility, security, and community participation.
Governance Architecture
Zypheria DAO
The central governance body with ultimate decision-making power, managed by ZYPH token holders. Responsible for protocol upgrades, key parameters, and committee oversight.
Committees (subDAOs)
Focused governance bodies empowered to handle routine operations, including grants, incentives, and program management.
Chain Manager: Mediates between governance and the blockchain’s privileged functions using advanced permission strategies, allowing granular control over network operation
Voting Vaults: Smart contracts that determine governance power based on various tokenized positions holding ZYPH.
What Makes Zypheria’s Governance Different?
Following the Mercury upgrade, Zypheria is now a sovereign chain with its own validator set and staking model.
Voting power is derived from bonding ZYPH or DeFi tokens containing through Voting Vaults.
Native stakers can participate in governance via the Staked ZYPH Voting Vault.
Specialized Committees manage routine governance tasks to reduce voter fatigue.
Tokenholders can hold Committees accountable through “overrule proposals.”
The Chain Manager enforces granular permission controls for privileged operations.
Chain Manager
The Chain Manager enforces a permission system to control which entities can perform privileged actions on the blockchain, using two strategies:
ALLOW_ALL: Grants an entity full access to all privileged functions without restriction.
ALLOW_ONLY: Restricts an entity to executing only specific message types, with optional additional constraints.
Supported Privileged Messages
params.ParamChangeProposal
Updates module settings through the now-deprecated Params module.
Specific modules and parameters
module_name.MsgUpdateParams
Modifies module settings through the updated parameter management system.
Specific fields within the message
cron.AddSchedule
Registers additional execution schedules within the CRON module.
None
cron.RemoveSchedule
Deletes schedules within the CRON module
None
upgrade.SoftwareUpgradeProposal
Schedules a software upgrade
None
upgrade.CancelSoftwareUpgrade
Cancels a scheduled upgrade
None
Permission Assignments
The network’s current permissions: Zypheria Core Contract with full ALLOW_ALL access; Expedited Upgrades Multisig limited to upgrade proposal actions; Tokenfactory Hooks Multisig restricted to hook parameter updates.
Voting Power System
Zypheria uses dedicated smart contracts called Voting Vaults to calculate governance power. These vaults can accept any tokenized position containing ZYPH:
ZYPH Vault: Accepts ZYPH deposits and grants 1 point of voting power per token with no lock-up.
LP Token Vaults: Accept LP token deposits and count the underlying ZYPH (both ZYPH-ATOM and ZYPH-USDC pairs have dedicated Voting Vaults).
Staked ZYPH Vault: Introduced during the Mercury upgrade, grants 1 point of governance power per ZYPH delegated to validators via native staking.
Virtual Vaults: Track ZYPH held in other contracts (lockdrops, vesting contracts), ensuring all ZYPH holders can participate in governance.
Committees (subDAOs)
The Zyphus can form specialized Committees (subDAOs) designed to handle the day-to-day operations of the network. These Committees are fully customizable, allowing the governance system to define membership (who can participate), voting weight (how votes are counted), and execution rights (what actions they are authorized to perform). This structure ensures efficient management while maintaining accountability to the broader tokenholder community.
Active DAOs
ZYPH DAO: Oversees scheduling proposals in the Hron module, allowing automated contract execution, while maintaining accountability to the main DAO via the overrule process
Security DAO: A specialized sDAO with authority to execute only pause() methods on designated contracts, allowing rapid responses to security incidents. This sDAO can pause other sDAOs, the Reserve contract, and the Distribution contract.
Timelocks & Overrules
When a sDAO proposal passes, it enters a timelock period, typically lasting 5 days.
During this period, the main DAO can submit an overrule proposal with a low threshold of 0.2%.
If the overrule proposal passes, the sDAO proposal is rejected.
If no overrule occurs, the sDAO proposal executes automatically after the timelock period.
Benefits and Parameters
Efficiency: Specialized committees manage routine governance tasks, reducing overhead and minimizing voter fatigue.
Accountability: Committees operate with autonomy, but the main DAO can overrule decisions with a low threshold, and timelock periods ensure transparency.
Participation: Voting Vaults allow DeFi participation, lowering opportunity costs and providing multiple ways to earn governance power.
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