Framework for Futarchy-Aligned Proposal Creation by the Core Team

To ensure that all proposals uphold integrity, predictability, and alignment with the long-term value of the protocol’s native token, the core team commits to the following governance standards when drafting futarchy proposals:

1. State Impact on Token Value

   Clearly explain how the proposal benefits the protocol and token value, including the mechanism of impact, current relevance, and expected net-positive outcomes (especially for token supply increment and incentive changes).

2. Define Measurable Metrics

   Include specific KPIs or performance metrics that can be used to evaluate success post-implementation.

3. Include Opportunity Cost Analysis

   Summarize resource requirements (e.g. dev hours, emissions, treasury spend) and potential trade-offs.

4. Align with Strategic Goals

   Show how the proposal fits into the protocol’s broader mission — is it foundational, experimental, defensive, or opportunistic?

5. Add Post-Implementation Review

   Describe how results will be evaluated, made public, and used to guide future decisions.

How we handle proposals:

1. Proposals can only be put up by Core Team.
2. Proposal Drafting occurs in the Flash Discord to arrive at reasonable parameters for the specifics.
3. In the case of a failed proposal, it can be revisited in 1 month only.
4. Proposals Must Be Specific and Executable
5. The token holders can suggest drafts of proposal which then can be improved and put up for voting by the team.

All proposals must define concrete, unambiguous implementation parameters (e.g. smart contract changes, allocation percentages, timelines) to ensure clarity and enforceability.