governance

According to The Defiant, the Algorand Foundation announced the closure of its community forum and advisory committee.The foundation will suspend xGov grants on December 6 and put the Project King Safety project on hold, while maintaining staking rewards support until January 2028.

David Chalian, the head and political director of CNN's Washington bureau, interprets that there has been a significant change in the power structure in the United States. The Democratic Party has taken control of both the House of Representatives and the Senate, and the last two years of Trump's term will be completely different from the first two years. Voters have sent a strong rejection of Trump in the elections, with presidential approval ratings underwater even in key Senate states and deep red states.The Democratic Party has secured seats in Texas, Ohio, Iowa, South Carolina, and other states, where Trump won by double digits just two years ago and had victories in all three of his presidential campaigns. Factors contributing to this shift include the alienation of independent voters, the return of Latino and young voters to the Democratic Party, Trump's failed economic governance, and public concerns about the cost of living, all of which have become important reasons for the Republican Party's midterm election losses.

The Zcash Community Grant Committee (ZCG) has announced that it has decided not to proceed with the proposal put forward on October 29, which aimed to allocate approximately 98,000 ZEC as future mining rewards. The committee stated that subsequent funding arrangements should be determined through Zcash's existing governance processes. ZCG currently automatically receives 8% of newly issued ZEC, amounting to about 144 coins per day, and the treasury size is sufficient to support expenditures for many years, although its funding model and accountability have recently sparked controversy within the community.According to the original proposal, the committee intended to allocate 36,200 ZEC from its treasury of approximately 91,500 ZEC to inject into a sustainable network mechanism to supplement miner block rewards, thereby reducing the expected income until the halving in 2028. Co-founder Sean Bowe, founder Zooko Wilcox, and developer Daira-Emma Hopwood have proposed various alternatives, such as terminating automatic grants, restructuring the use of funds, or focusing on promoting the use of ZEC, but none have been approved yet. Until the network upgrade changes the rules, ZCG will continue to receive approximately 144 ZEC daily.

The NEAR Protocol governance body House of Stake passed the HSP-029 proposal with approximately 99.96% support, with a voting power of 3.29 million veNEAR. The proposal aims to gradually reduce the annual token issuance cap from 2.5% to 1.6% over 24 months, with an average monthly decrease of 0.0375 percentage points. The proposal was initiated by Sal Ternullo, CEO of the Nasdaq-listed company SVRN, and only adjusts one protocol parameter, while the existing distribution ratio remains unchanged: 90% of newly issued tokens are allocated to staking participants, and 10% go to the treasury.The proposal also requires approval from the House of Stake Security Committee and will be implemented after a preparation period of about 90 days and once validators complete the protocol upgrade. The model estimates that, based on the original issuance cap, approximately 11.8 million NEAR could be issued less in the first two years after implementation, and about 66.1 million less over six years. After full implementation, the daily issuance is expected to decrease from about 89,500 to 57,300; under the assumption of similar staking participation rates, the gross staking yield is expected to drop from 5.268% to 3.372%, and validator commission income is expected to decrease by 36%.

According to CoinDesk, the stablecoin OpenUSD (OUSD), initiated by Stripe, Visa, Mastercard, Coinbase, and Shopify, will charge a management fee of 0.1 basis points based on payment volume, with a maximum fee of $0.01 per transaction. The document shows that payments of $1,000 and above are subject to the $0.01 cap, while smaller payments are charged at 0.1 basis points of the amount.Unlike USDT and USDC issuers who retain reserve interest, OUSD distributes reserve earnings to partners, deducting only the management fee. Open Standard also provides partners with opportunities to gain equity in projects based on OUSD holdings and cash flow, requiring partners to hold at least $50 million to participate in the equity pool, with a maximum ownership percentage of 5% for a single partner. Additionally, Visa has released a technical implementation and user guide of over 100 pages for partners to integrate OUSD through the Visa stablecoin platform.

The public chain NEAR Protocol stated on X that its decentralized on-chain governance body, House of Stake, has voted to approve a proposal to reduce the annual maximum issuance rate of NEAR from 2.5% to 1.6%, to be implemented in phases over 24 months. Token holders adjusted this core parameter through public voting, and the new rate will take effect gradually per epoch according to the announced schedule.The proposal, numbered HSP-029, was put forward by Sal Ternullo from SVRN, and its forum status is approved. The proposal retains the original allocation ratio, with 90% going to staking participants and 10% entering the treasury, only adjusting the issuance cap parameter. Officials stated that the long-term issuance will decrease, and the supply schedule is available for verification.The subsequent process is as follows: the House of Stake Security Committee reviews the voting results before approval; after approval, there will be a grace period of about 90 days; the changes will only become binding after validators adopt them through protocol upgrades. Thereafter, the issuance rate will be gradually reduced each epoch, reaching 1.6% in the 24th month, and quarterly reports will track the actual issuance against the schedule.

The SEC's financial department stated that widely governed participants who are not related and have no separate collaborative action arrangements typically do not constitute a central party in the identification of digital commodities.

Hifi Finance disclosed that Hifi DAO has encountered a governance takeover attack, and HIFI token holders are effectively unable to control the protocol, governance smart contracts, and HIFI token supply. The team urges all users with collateral in the Hifi Protocol to withdraw immediately and specifically requests the controllers of the two relevant addresses to withdraw WETH from the protocol.Hifi Finance stated that the core team failed to detect and prevent this governance attack in a timely manner and takes full responsibility for it. The team has now taken measures to significantly limit the impact of the attack, and the final losses are yet to be determined, with preliminary estimates around $20,000. The DAO has sufficient funds to compensate all affected parties; the DAO's own liquidity has been permanently withdrawn from decentralized trading platforms.Additionally, all outstanding debts collateralized by RWA will be directly managed by the core team and will no longer be processed through the compromised smart contracts. The relevant debts still have ample capital support and are expected to be fully repaid by the original due date of March 26, 2027, with no new debts being issued by the protocol. The team stated that a complete investigation report will be released subsequently.

Cameron Winklevoss, co-founder of Gemini, tweeted that Zcash does not need to reinvent its governance mechanism. Stakeholder voting has been functioning in capital markets for hundreds of years, and holder voting is merely its on-chain form. Experimental governance is not the mission of Zcash; its mission is privacy.Cameron Winklevoss stated, "It is time to end ZCG and all the distractions and misaligned goals it brings." Previously, Cameron Winklevoss and his twin brother Tyler Winklevoss's Winklevoss Asset had submitted an S-1 registration statement for the Winklevoss Zcash ETF to the U.S. Securities and Exchange Commission. This ETF plans to directly hold ZEC, intends to list under the ticker WINK on Nasdaq, with an expense ratio of 0.25%, and Gemini Trust Company will act as the custodian.

According to on-chain researcher Spreek, the DeFi protocol Hifi Finance has encountered a DAO governance takeover. The attacker gained control through four last-minute votes funded by Tornado Cash, subsequently minting 25 million governance tokens and transferring users' staked assets, with a total value of approximately 1 million dollars, most of which were RWA tokens.

According to on-chain researcher Spreek, the DeFi lending protocol Hifi Finance is suspected of experiencing a DAO governance attack. An address funded by Tornado Cash cast 4 votes just before the governance vote was about to end, taking control of the protocol's governance.This address subsequently minted 25 million HIFI tokens and transferred all user collateral assets within the protocol, valued at approximately 1 million dollars, most of which were RWA tokens.

According to BlockSec monitoring, a suspicious transaction by X100 Global on Ethereum resulted in a loss of approximately 4.75 million USD, with the related attack stemming from a vulnerability in the governance mechanism design: the attacker used a flash loan to borrow funds to purchase X tokens, allocated the tokens to two controlled contracts, and then deposited them into the Freezer, thereby controlling 2 out of 3 senator seats in the same transaction, and subsequently immediately passed and executed a malicious treasury proposal.Specifically, the attacker first created and provided liquidity to the X-USDT trading pool on PancakeSwap V3, then used the obtained majority governance seats to approve the exchange of 400,000 X tokens into that trading pool, setting the minimum output amount to 0, ultimately receiving only about 35.68 USDT. Subsequently, the attacker withdrew liquidity, sold part of the recovered X tokens through the existing Uniswap V3 X-USDT trading pool, and repaid the flash loan.

JUST announced an upgrade to the buyback and destruction mechanism for JST. After completing the fifth round of buyback and destruction, the mechanism officially enters a new phase: governance will be unified by the JUST DAO, and a reserve fund of no less than 50 million USD will be established for risk mitigation, emergency redemptions, and liquidity support, to enhance the mechanism's risk resistance and execution stability.On the buyback side, it will shift to being executed based on the quarterly sustainable income of the JUST ecosystem, forming a normalized arrangement of long-term buybacks and regular destructions, making the scale of buybacks more closely tied to the actual income of the ecosystem.In addition, the remaining surplus funds above the reserve threshold, approximately 20.34 million USD, will be released in four phases starting from Q4 2026 to supplement the buyback, ensuring long-term deflation and stability of the mechanism. The complete announcement and implementation details can be found through official channels.

The privacy Layer 2 network Aztec, based on zero-knowledge proofs, announced that its V6 upgrade proposal has been approved, but the governance panel currently still shows that voting is open, with the execution date listed on the panel as October 26.According to disclosures, the upgrade will enhance the messaging speed between Ethereum and Aztec, and will provide 30 days of operational funding for the V5 version during the migration period.

The decentralized trading protocol of PancakeSwap, The Flip proposal, has entered the governance voting phase, accompanied by CAKE supply conditions. This proposal aims to allocate 88% of the trading fees from v3 and Infinity pools to liquidity providers, with the remaining 12% going to the protocol treasury, while the fee structure for v2 remains unchanged.In terms of token issuance, the proposal plans to reduce the daily CAKE issuance from 22,500 tokens to 7,000 tokens, a decrease of about 69%, equivalent to approximately 5.66 million newly minted tokens per year. The remaining 7,000 tokens per day will be allocated to an ecological growth fund named Pantry, which will be flexibly used by The Kitchen team for marketing, partnerships, and initial liquidity for new pools.If the vote passes, implementation will begin within two weeks after approval, lasting from November 2026 to the end of January 2027, completing in about three months and being announced chain by chain. This proposal is built upon the Tokenomics 3 framework passed in April 2025, aiming to reduce the supply by approximately 20% by 2030. PancakeSwap states that the supply has decreased by 11.5% over the past 18 months.

The NEAR ecosystem governance proposal HSP-029 has entered the voting stage, proposing to gradually reduce the maximum annual issuance rate of NEAR tokens from 2.5% to 1.6%. This proposal was put forward by SVRN CEO Sal Ternullo, planning to linearly decrease by approximately 3.75 basis points per epoch over 24 months, while maintaining a 90/10 allocation ratio between stakers and the treasury. After the vote passes, there will be a 90-day grace period before the reduction officially begins.The proposal's calculations indicate that this plan is expected to reduce the issuance of approximately 11.8 million NEAR tokens over two years, with a cumulative reduction of about 66.1 million tokens over six years, equivalent to a 4.36% decrease in supply compared to the current situation. The annualized staking yield will gradually decrease from the current 5.268% to 3.372%. The author points out that this move aims to reduce the degree of dilution for non-staking holders and responds to discussions regarding the protocol's discretion risk following the withdrawal of the previous Sovereign Fund proposal.This proposal must go through a dual process to take effect: after passing the House of Stake vote, validators must also independently adopt it through the standard protocol upgrade process. The proposal cites Solana's SGP-0002, which was passed in August 2026 with a staking weight approval of 67.001% for a similar issuance reduction, as a precedent. Currently, the NEAR network has a total of 406 active validators, with a staking rate of 42.71%.

The blockchain security research organization Asymmetric Research disclosed that there was a vulnerability in the governance program svmgov on the Solana chain: when validators did not participate in voting, independent votes submitted early by their delegators might not be counted in the final results. This vulnerability was reported to the Solana Foundation on July 10 and was fixed on the mainnet on August 3, ahead of the governance vote on August 24.Asymmetric Research estimated based on on-chain data that if the vulnerability had not been fixed, the approval rate of the SGP-0002 proposal, which aims to accelerate the decline of SOL inflation, could have dropped from the actual 67% to 66.65%, below the passing threshold of 66.67%. This vulnerability was fixed before the voting, and did not actually change the outcome of the proposal.

According to the summary from the Arbitrum Foundation governance forum, the Arbitrum DAO currently has 4 temperature check votes ending on October 22, involving the Ethereum Glamsterdam upgrade adaptation, L1 governance recovery mechanism, treasury ETH transfer, and USDG strategic plan.Among them, the Entropy proposal suggests setting USDG as one of the core strategic plans of the Arbitrum DAO and additionally allocating 100 million ARB from the DAO treasury to the DRIP budget, while adjusting the project cycle and allowed uses. Furthermore, it is proposed to direct the net fees from AEP into ATMC and convert them into USDG to support the growth of USDG on Arbitrum.

Stan Kladko, co-founder of SKALE Labs, announced on X to the SKALE community that he has stepped down from his position as Chief Technology Officer and board member of SKALE Labs, which he co-founded in 2017, but he will continue to serve as a member of the SKALE Foundation board. He expressed the desire to clarify the actions he is requesting from the foundation and believes the community should be involved in the discussion.Stan Kladko stated: SKALE is a protocol that relies on a small team of engineers who are responsible for developing, debugging, and maintaining the network online over the long term. These individuals have the best understanding of the boundaries of what is technically feasible and infeasible, but currently, there are no builders on the foundation's board. He believes that a protocol foundation without builders involved will make decisions on matters such as the roadmap, funding, and network economics, but will lack the necessary people to implement those decisions. He mentioned that successful protocols, from Ethereum to Cosmos, always involve engineers in discussions about long-term direction.The proposal put forward by Stan Kladko is to expand the foundation's board by three seats, to be filled by individuals with a strong background in software and protocol engineering. He stated that this proposal has been formally submitted to the foundation, and updates will be shared as they can be disclosed. He called for those who agree that building SKALE should participate in governance, and validators, delegators, application teams, and token holders can publicly express their stance, stating that he will continue to build SKALE.

On-chain derivatives protocol Derive has released a new proposal in its governance forum, aiming to expand its business into the regulated derivatives market in the United States. Community members can review the proposal and participate in the discussion.Derive is an on-chain derivatives protocol aimed at professional traders, offering trading products such as options and perpetual contracts, and employs an off-chain matching and on-chain settlement architecture. The proposal is currently in the community discussion phase, and the specific regulatory path, partners, and timeline will be based on the content of the forum proposal.