Chapter 5 · § 5.3 · Recipe
What Governance Can and Cannot Touch
The room votes on details. The ladder rungs are out of the room.
Problem
What can governance change, and what is out of reach?
Solution
The room votes on details. The ladder rungs are out of the room.
| Governance can change | Governance cannot change |
|---|---|
| Trigger thresholds (within bounds) | Order of the resolution waterfall |
| Fee schedules | 15% SZK collateral cap |
| Collateral admittance lists | 130% minimum collateral ratio floor |
| Validator-set sizes | Bounded-dilution math |
| Certain rate parameters | Priority of szUSD over szBOND over SZK |
The full list of governance-mutable and governance-immutable items is in the canonical version of § 4.6.
Discussion
The principle: the room can vote on details. The ladder rungs and their order are out of the room. If a parameter could be changed during a panic in a way that materially shifts loss absorption, the parameter is out of reach.
✦ Tip
A useful test for any governance system: list the parameters that would be most attractive for a hostile governance majority to change. If those parameters are mutable, the governance system is designed for the steady state and not the crisis.
See Also
- § 5.4 · Narrow Surface Area — the dual constraint on what is implementable inside the immutable surface
❦ ❦ ❦