Governance & Staking

Kandle Finance operates as a truly decentralized protocol where KANDLE token holders have meaningful control over the platform's development, parameters, and treasury management. Our governance system rewards active participation while ensuring sustainable protocol evolution.

Governance Overview

The Kandle Finance governance system is designed to give real power to the community while maintaining efficient decision-making processes. Unlike many DeFi protocols where governance is largely symbolic, KANDLE holders directly influence:

• Protocol parameters and fee structures
• New strategy additions and removals
• Treasury allocation and spending
• Cross-chain expansion decisions
• Partnership approvals
• Risk management policies

KANDLE Token Staking

Staking Benefits

Revenue Sharing

• Receive weekly distributions of protocol fees
• Proportional to your staked amount and lock duration
• Paid in stablecoins (USDC/USDT) or ETH

Fee Discounts

• Tiered discount system on all protocol fees
• Up to 15% base discount + 25% lock bonus
• Immediate application upon reaching tier thresholds

Governance Rights

• Vote on all protocol proposals
• Submit proposals (with minimum stake requirements)
• Participate in governance committees

Premium Features

• Early access to new yield strategies
• Advanced analytics and reporting
• Priority customer support

Staking Mechanics

Flexible Staking

• No lock period required for basic staking
• Immediate unstaking available (with small penalty)
• Base APR: 15-25% from protocol fees

Lock Period Bonuses

Lock Period    | APR Bonus | Total APR Range
No Lock        | 0%        | 15-25%
30 Days        | +5%       | 20-30%
90 Days        | +10%      | 25-35%
365 Days       | +15%      | 30-40%

Governance Participation Rewards

• Active Voting: +2% APR
• Proposal Creation: +3% APR
• Committee Participation: +5% APR

How to Stake

1. Acquire KANDLE Tokens

   • Earn through yield farming rewards
   • Purchase on decentralized exchanges
   • Receive through governance participation

2. Navigate to Governance Section

   • Connect your wallet to the Kandle Finance app
   • Go to the "Governance" tab
   • Select "Stake KANDLE"

3. Choose Staking Options

   • Select stake amount
   • Choose lock period (optional)
   • Enable auto-compound (recommended)
   • Confirm transaction

4. Start Earning

   • Rewards accrue immediately
   • Weekly distributions to your wallet
   • Vote on active proposals

Governance Process

Proposal Types

Parameter Changes

• Fee structure modifications
• Risk parameter adjustments (LTV ratios, liquidation thresholds)
• Interest rate model updates
• Minimum stake requirements

Strategy Management

• New yield strategy additions
• Strategy removal or deprecation
• Risk assessment updates
• Protocol integration approvals

Treasury Decisions

• Treasury asset allocation
• Development funding
• Marketing budget approval
• Emergency fund management

Protocol Upgrades

• Smart contract upgrades
• New feature implementations
• Cross-chain expansions
• Security improvements

Voting Mechanisms

Standard Voting

• One token = One vote for most proposals
• Simple majority required (greater than 50%)
• Minimum quorum: 10% of total staked supply

Quadratic Voting

• Used for major protocol changes
• Reduces influence of large holders
• Encourages broader participation

Time-Weighted Voting

• Longer staking periods = Higher voting power
• Rewards long-term commitment
• Maximum 2x multiplier for 365+ day stakes

Proposal Lifecycle

1. Discussion Phase (7 days)

   • Community discussion on forums
   • Feedback and refinement
   • Impact assessment

2. Formal Proposal (3 days)

   • Technical specification
   • Implementation plan
   • Risk analysis

3. Voting Period (5 days)

   • On-chain voting
   • Real-time results
   • Debate and advocacy

4. Execution (2-14 days)

   • Automatic execution for simple changes
   • Development time for complex updates
   • Community monitoring

Governance Committees

Risk Committee

• Monitors protocol risks
• Reviews new strategies
• Recommends parameter changes
• Requirements: 25,000+ KANDLE staked

Treasury Committee

• Manages protocol treasury
• Approves spending proposals
• Investment strategy oversight
• Requirements: 50,000+ KANDLE staked

Technical Committee

• Reviews technical proposals
• Security assessment
• Development prioritization
• Requirements: Technical expertise + 10,000+ KANDLE

Revenue Distribution

Weekly Distribution Process

Every week, protocol fees are collected and distributed according to the following allocation:

Protocol Fees Distribution:
├── 50% → Staking Rewards Pool
├── 25% → Treasury & Buy-backs
├── 15% → Development Fund
└── 10% → Marketing & Operations

Fee Sources

Performance Fees: 10-15% of generated yield

• Primary revenue source
• Scales with platform growth
• Distributed proportionally to stakers

Management Fees: 1-5% annually on AUM

• Stable recurring revenue
• Covers operational costs
• Excess goes to stakers

Withdrawal Fees: 0.1% of withdrawn amount

• Prevents frequent rebalancing abuse
• Minimal impact on users
• Contributes to treasury

Distribution Formula

function calculateUserRewards(address user) external view returns (uint256) {
    uint256 userStake = stakedAmount[user];
    uint256 lockBonus = calculateLockBonus(user);
    uint256 participationBonus = calculateParticipationBonus(user);
    uint256 totalWeightedStake = getTotalWeightedStake();
    uint256 weeklyRewardPool = getWeeklyRewardPool();
    
    uint256 userWeight = userStake.mul(lockBonus).mul(participationBonus);
    return weeklyRewardPool.mul(userWeight).div(totalWeightedStake);
}

Advanced Features

Governance Delegation

Delegate your voting power to trusted community members:

• Maintain staking rewards while delegating votes
• Choose specialized delegates for different proposal types
• Revoke delegation at any time
• Delegate retains no control over your staked tokens

Proposal Templates

Pre-built templates for common proposals:

• Parameter Change Template: Standardized format for risk parameters
• Strategy Addition Template: Required documentation for new strategies
• Treasury Spending Template: Budget requests and justification
• Emergency Action Template: Fast-track critical issues

Governance Analytics

Track governance health and participation:

• Participation Rates: Voting turnout by proposal type
• Stake Distribution: Decentralization metrics
• Proposal Success Rates: Community alignment indicators
• Delegate Performance: Voting alignment and participation

Emergency Procedures

Pause Mechanism

Multi-sig emergency pause for critical situations:

• 3-of-5 signatures required
• 48-hour automatic unpause
• Community override capability

Security Incidents

Rapid response for smart contract vulnerabilities:

• Immediate strategy pausing
• Asset protection measures
• Community communication
• Recovery planning

Governance Attacks

Protection against governance attacks:

• Time delays for major changes
• Minimum voting periods
• Quadratic voting for sensitive proposals
• Community veto powers

Getting Started with Governance

1. Stake Your Tokens: Start earning rewards immediately
2. Join the Community: Discord, forums, and social channels
3. Participate in Discussions: Share your insights and feedback
4. Vote on Proposals: Make your voice heard in protocol decisions
5. Consider Delegation: Support experienced community members
6. Create Proposals: Drive the protocol's future development

The Kandle Finance governance system ensures that our protocol remains community-owned, transparent, and aligned with user interests while maintaining the agility needed for a competitive DeFi landscape.