> For the complete documentation index, see [llms.txt](https://fluxtra-lsd.gitbook.io/fluxtra-lsd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fluxtra-lsd.gitbook.io/fluxtra-lsd-docs/fluxtra-governance.md). # Fluxtra Governance Fluxtra’s **governance model** empowers users to influence how the protocol delegates staking funds and participates in on-chain governance decisions. The goal is to create a **transparent, decentralized, and fair** delegation system while ensuring validators contribute to the ecosystem’s security and stability. By participating in Fluxtra Governance, users gain control over validator delegations and governance proposals, ensuring a **community-driven** approach rather than centralized decision-making. *** #### **Vote-Escrowed Governance (vAMP-Gauge)** Fluxtra introduces the **vAMP-Gauge**, a vote-escrowed mechanism that allows users to **lock their ftOM** to participate in governance. Instead of using a separate governance token, Fluxtra enables users to directly lock their assets for voting power. **Locking & Voting Power** * Users **lock ftOM** for a period ranging from **3 weeks (minimum)** to **2 years (maximum)** to gain **boosted voting power**. * A **3-week lock** provides **1.3x voting power**, while a **2-year lock** provides **10x voting power** (calculated as **1 + (9 \* Lock Duration Factor)**). * Voting power is used to **select validators** (up to 3 per user) and **vote on governance proposals** that impact the protocol. By enabling direct governance participation, Fluxtra ensures **delegation and voting power remain in the hands of users**, rather than being controlled by a centralized entity. *** #### **Proposal Gauges** Users who lock their **ftOM** in the ftOM-Gauge can also participate in **on-chain governance proposals**, shaping protocol updates, reward distributions, and validator selection policies. *** #### **Validator Incentive System:** Fluxtra’s governance extends beyond user votes by implementing a **validator reward system** through **FX Points (fxP)** **Although fxP is not active at launch**, it is designed to incentivize **validators who contribute to the ecosystem**. **fxP** will be assigned based on performance and engagement, with **two types of points**: * **Fixed Points** – Earned for continuous support tasks, such as maintaining relays. * **Decaying Points** – Awarded for one-time contributions that diminish over time. **fxP Allocation & Validator Rewards** 1. **Monthly Validator Missions** – Validators complete assigned tasks, such as educational initiatives or community engagement, to earn **fxP** rewards. 2. **Community Representatives** – Five community members can nominate three **fxPs** per month, ensuring a **decentralized** validation process. Fluxtra updates the community monthly on **fxP** allocations and validator rewards. *** #### **Ensuring LSD Stability Through Active Validators** By incentivizing validators to **engage with the community**, Fluxtra enhances **network security, governance participation, and DeFi integration**. This leads to a **healthier and more resilient LSD ecosystem**. *** #### **Delegation Mechanism & Safety Measures** * **Rebalancing Frequency** – On the **first Monday of every month**, Fluxtra applies updated governance votes and EMP rewards to **redistribute protocol delegations** among the **top 30 validators**. * **Security Safeguards** – Validators must meet minimum delegation thresholds and cannot receive more than a set percentage of total delegations to prevent centralization. * **Whitelisting Process** – New validators undergo a **verification process**, assessing hosting quality, team strength, community involvement, and system monitoring. *** #### **Conclusion** Fluxtra’s governance model redefines how LSD protocols handle **validator selection and delegation**. By shifting governance power to **ftOM holders**, implementing **vote-escrowed staking**, and rewarding **active validators**, Fluxtra ensures a **truly decentralized and community-driven staking ecosystem**. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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