Governance Mechanism
Diamonde s Governance
The Diamonde protocol is managed and upgraded by token holders through three components:
AMD Token Governance Diamonde（DAO）
Platform Governance Committee (Foundation)
Multi signature management
These components collectively empower community members with the ability to propose, vote, and implement changes to the Diamonde V3 system. Through this mechanism, proposals can cover adjustments to system parameters, enabling or disabling policies, as well as installing or upgrading modules, thereby enabling the addition of new features and the evolution of protocols. This governance structure ensures the flexibility and continuous innovation of the protocol, supporting decentralized decision-making processes.
AMD， Governance Diamonde is an ERC-20 token used to propose an upgrade to the Diamonde protocol. AMD can be obtained through packaging DIA, and vice versa. Currently, AMD's only use cases are voting and serving as collateral for Cooler Loans.
AMD allows owners to delegate voting rights to any address, including their own address. When entrusting, the following points should be noted:
Users can only delegate to one address at a time
All AMD balances of the principal will be added to the number of votes of the principal
If the balance of the principal's token changes, the voting rights of the principal will be automatically adjusted
Voting is delegated from the current block until the delegate delegates or transfers all AMD again
AMD located in Cooler Loans is eligible for authorization
DAO members can implement delgation by calling functions or using valid off chain signatures.，Diamonde provides a front-end for managing delegation in this governance protocol.
The following table outlines which AMD suppliers are eligible to vote in Snapshot and Governor Bravo:
AMD
✅
❗ (requires delegation)
AMD in Cooler Loans
✅
❗ (requires delegation)
Arbitrum AMD
✅
❗ (requires delegation)
XONE AMD
✅
❗ (requires delegation)
Optimism AMD
✅
❗ (requires delegation)
Base AMD
✅
❗ (requires delegation)
Percentage based quorum threshold - the minimum number of votes required for a proposal to pass. Set the proposal activation to 17% of AMD supply.
Net Voting Approval Threshold - OCG introduces the concept of net voting, which is the difference in votes between affirmative and negative votes to qualify a proposal for approval. Specifically, the percentage of votes cast in favor must reach 61% or higher.
The decision to introduce these changes stems from AMD's supply elasticity. The percentage based threshold ensures that the requirements for proposing and executing proposals (calculated in absolute AMD terms) increase/decrease with the expansion/contraction of token supply.
The re signer can perform protocol upgrades for roles that are not yet fully controlled by Governor Bravo's time lock. Multi signers can queue and perform community approved on chain operations through off chain governance client snapshot. Currently, the following roles are under shared time lock and multi signature control:
Diamond's Advanced Governance Mechanism
As the next generation decentralized perpetual contract protocol, Diamonde has designed a governance system that combines decentralization, transparency, and flexibility by drawing on and optimizing top governance models such as Olympus, creating long-term value for users and communities and enhancing the sustainability of the protocol. Here are Diamonde's governance advantages and highlights:
Community driven core decision: Diamonde returns governance to the community and grants holders proposal and voting rights through AMD tokens. The community can make decisions on key issues such as system parameter adjustment and strategy optimization, ensuring that the development of the protocol is collectively driven by users.
Transparency and Autonomy: The governance process is fully on chain, from proposal submission to public voting results, and the entire process can be audited, enhancing the transparency and credibility of protocol governance.
Flexible scalability: Diamonde's governance system adopts a modular design, allowing seamless deployment or upgrade of new functional modules through governance proposals. For example, adding a reverse bond mechanism, optimizing the national treasury reserve strategy, etc., to ensure that the agreement can quickly adapt to market changes.
A robust innovation framework: Modular governance design supports protocol innovation while maintaining core functionality stability, providing assurance for Diamonde's long-term competitiveness.
Automated Execution: Diamonde's smart contract driven governance ensures that once a proposal is approved, relevant modifications and operations are immediately executed by the smart contract, ensuring governance efficiency and accuracy.
Reduce human intervention: By automating processes on the chain, traditional governance models can eliminate potential human errors or delays.
Motivate users to participate in governance
AMD Holder Incentive: Diamonde encourages AMD holders to participate in governance, increasing user engagement and enhancing community cohesion. After the governance proposal is passed, participants will share the benefits of the agreement based on their voting weight.
Long term incentive model: A portion of the agreement benefits are distributed to $veAMD holders, and users are further incentivized to participate in the long term through the accumulation of token value.
Intelligent Reserve Management: Through community governance, dynamically optimize the allocation of national treasury reserve assets (such as stablecoins, DIA-USDT LP). The growth of reserves not only supports the stable operation of the agreement, but also provides a buffer for future market fluctuations.
Price stability strategy: Diamonde introduces reserve bonds and reverse bond mechanisms, combined with governance strategies, to manage reserve assets and price fluctuations in both bull and bear markets through a two-way management agreement.
Cross protocol collaboration: Diamonde's governance mechanism is designed as an open system that can seamlessly integrate with other decentralized protocols such as Oracle and cross chain bridges, further enhancing the protocol's market competitiveness.
Innovation driven ecosystem: By flexibly introducing new features and partners through governance, Diamonde is gradually building a decentralized financial ecosystem with long-term competitiveness.
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