Governance
JamFi Governance is implemented through a decentralized autonomous organization (DAO), where $JAMI holders directly control the protocol. All major changes — from lending parameters and yield rates to asset additions and strategic partnerships — are subject to community voting and enforced by smart contracts. This structure eliminates centralized control and ensures transparency across all governance processes.
Role of the $JAMI Token
The $JAMI token serves as the main governance instrument. Holders can submit proposals, participate in voting, delegate their voting rights to other members, and influence treasury allocations. To strengthen engagement, the protocol introduces participation rewards: active DAO members receive payouts in $JAMI, which are further integrated into the staking mechanism.
Key governance functions of $JAMI include:
submitting proposals,
participating in voting,
delegating voting rights,
deciding on treasury allocations,
receiving rewards for governance activity.
Voting Mechanism
JamFi applies a quadratic voting model. Voting power is calculated as the square root of the number of tokens held at the snapshot moment. This prevents large holders from dominating the process and gives meaningful weight to small and mid-sized community members. A delegation feature allows less active users to assign their votes to trusted participants while keeping ownership of their tokens.
Decision-Making Process
The governance procedure follows a structured flow. A proposal is first submitted to the DAO forum with a minimum stake of $JAMI attached. It then enters a 48-hour discussion period where the community can provide feedback and refinements. After this stage, the proposal moves to a seven-day voting phase. For approval, quorum must reach at least five percent of the circulating supply, and the majority of votes must be in favor. Approved initiatives are executed automatically by smart contracts, or in cases requiring manual integration, the team implements them within two weeks and reports back to the DAO.
Decision-making stages:
Proposal submission in the DAO forum.
Discussion phase (48 hours).
Voting phase (7 days, quorum ≥5%).
Execution via smart contracts or team implementation.
Governance Scope
The DAO covers both technical and strategic aspects of the protocol. Community members decide on lending and liquidity pool rates, asset and pool additions (including RWA), treasury allocations, smart contract upgrades, and the approval of strategic partnerships or exchange listings. This broad scope ensures that governance extends across the entire protocol lifecycle.
Participation Rewards
Active participation in governance is incentivized through $JAMI rewards. Members who take part in discussions and voting earn yields ranging from one to five percent annually. Authors of proposals that are approved and implemented receive additional bonuses. All rewards are linked with staking and automatically compounded, providing a long-term incentive for active governance.
Security Model
At the initial stage, JamFi uses a hybrid governance model. Major decisions are subject to a timelock of 48–72 hours, while treasury operations are managed by a 3-of-5 multisig wallet. As TVL grows, control is gradually transitioned to the DAO. Once the protocol reaches $100 million in TVL, governance becomes fully community-driven. For critical cases, an emergency vote with a higher quorum of 20% can be triggered.
DAO Roadmap
Governance will evolve in phases. The first stage introduces test votes and discussions within the DAO forum. The second stage enables full DAO governance once liquidity reaches a sustainable level. In the long term, JamFi plans to adopt elements of AI-governance, where algorithms generate proposals based on data analysis, while final decisions always remain in the hands of $JAMI holders.
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