# What is Governance on Minswap?

## What is Governance on Minswap?

Minswap is governed by its community through a Decentralised Autonomous Organisation (DAO) model, allowing token holders to propose, vote, and decide on key protocol changes and developments.

* The native token **$MIN** is used for voting.
* Anyone holding $MIN can participate.
* Voting is done on-chain for transparency and immutability.

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### How Minswap Governance Works

#### Proposal Submission

Community members can create and submit proposals (e.g., fee structure changes, new farming pools, treasury usage).\
Proposals are first discussed off-chain (e.g., Governance Forum) before going on-chain.

#### Snapshot Voting

Voting typically takes place via a snapshot mechanism based on wallet balances at a specific block.\
You vote using your $MIN tokens – the more you hold, the more weight your vote has.

#### Execution

If a proposal passes the required quorum and majority, it is implemented by the core team or via smart contract automation.

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### Pros of Minswap Governance

| Benefit                    | Description                                                 |
| -------------------------- | ----------------------------------------------------------- |
| Decentralisation           | Decisions are made by the community, not a centralised team |
| Transparency               | Voting records and proposals are public and on-chain        |
| Incentivised Participation | $MIN holders have a direct say in protocol direction        |
| Community Empowerment      | Enables funding of community ideas via treasury proposals   |

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### Cons and Challenges

| Challenge          | Description                                                |
| ------------------ | ---------------------------------------------------------- |
| Low Voter Turnout  | Many holders don’t participate, leading to low engagement  |
| Whale Dominance    | Large holders can sway votes, reducing fair representation |
| Voter Apathy       | Users may not fully understand complex proposals           |
| Coordination Costs | Requires strong community communication and infrastructure |

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### Real Governance Examples

* **Fee Distribution Changes**: Proposals to adjust how trading fees are shared between LPs, stakers, and the DAO.
* **New Farm Listings**: Adding new yield farms and determining MIN reward allocation.
* **Treasury Grants**: Funding community tools, dashboards, or audits.