Governance
User-Sentiment Driven Governance — a constitutional framework where core monetary logic is immutable, governance operates as recommendations only, and no single entity can override the system's deterministic mechanics.
Constitutional Boundaries
The core monetary logic of 3.Finance is immutable. The Redirect Variable rules, RRC mechanics, and Fortify/Thrive mode transitions execute deterministically — no governance vote can override them.
What Governance Cannot Do
- • Override Redirect Variable calculations
- • Modify RRC mechanics or curves
- • Force Fortify/Thrive mode transitions
- • Access the Vault or Settlement Pledge
- • Bypass deterministic fund allocation
- • Execute instant parameter changes
What Governance Can Do
- • Submit KPI target recommendations
- • Nudge RRC parameters incrementally
- • Propose Grove strategy adjustments
- • Recommend POD allocation weights
- • Signal community sentiment on direction
- • Propose operational improvements
Incremental Adjustment — No Instant Override
Tokenomic governance produces recommendations only — KPI targets that nudge RRC parameters incrementally over time.
Three Governance Domains
Governance is divided into three distinct domains, each with different participants, proposal rights, and constitutional safeguards.
The Grove Domain
Asset management and yield strategies
Who Proposes
3Receipt Holders
Pause Power
VW3-Weighted
Legend Role
Resume
The Guild Domain
Currency issuance and SSLP operations
Who Proposes
Creditors / PACT Holders
Pause Power
VW3-Weighted
Legend Role
Resume
The Reserve Domain
Monetary policy and Vault management — strongest constitutional safeguards
Who Proposes
3Fi Stakers + VW3 Participants
Pause Power
N/A
Legend Role
Veto (Not Resume)
Asymmetric Design: The Reserve domain uses veto instead of resume — a stronger constitutional safeguard for monetary policy. Legends can block proposals but cannot initiate them. This ensures monetary policy has the highest protection level.
Legend Governance Principles
Legends Cannot Propose
Legends only respond to proposals — they never initiate them. This prevents constitutional guardians from becoming centralized controllers.
Resume Authorization (Grove & Guild)
In the Grove and Guild domains, Legends provide resume authorization — not approval. A paused proposal can only proceed after Legend review confirms it does not threaten constitutional integrity.
Veto Power (Reserve Only)
In the Reserve domain, Legends exercise veto power — they can permanently block proposals that threaten monetary policy. "Veto responds — never initiates."
Constitutional Checks — Not Control
No single entity controls the system. No majority can override constitutional mechanics. Legends are circuit breakers, not centralized authorities.
Convergence to Autonomy
The governance system is designed to become progressively less necessary. As the RRC finds strong ground and the protocol matures, governance recommendations cease and the mechanism runs autonomously.
Dormant But Available
Constitutional governance functions remain available but become dormant as the system stabilizes. They are not permanent fixtures — they are safety mechanisms that activate only when needed.
Engineered Into Code
Balance comes from immutable core mechanics, not continuous governance negotiation. The system is engineered into code — not politics. No single entity control. No majority override.