Governance

CrowdProof uses a DAO governance model where token holders vote on protocol changes. This ensures no single entity controls the scoring system.

Governance Scope

Token holders can vote on:

Category	Examples
Scoring Parameters	Decay rate (λ), category weights, confidence thresholds
Fee Structure	API pricing tiers, rate limits, free tier allowance
Dispute Resolution	Escalated dispute outcomes, arbiter selection
Contract Upgrades	Proxy implementation changes, new contract deployments
Data Sources	Adding/removing supported chains or protocols

Governance Process

1. Proposal (requires 100,000 CROWD tokens to submit)
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2. Discussion Period (3 days)
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3. Voting Period (5 days)
   • Quorum: 4% of total supply
   • Approval: Simple majority (>50%)
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4. Timelock (2 days)
   • Allows users to exit if they disagree
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5. Execution (automatic via timelock contract)

CROWD Token

Property	Value
Token Standard	ERC-20 + ERC-20Votes
Total Supply	100,000,000 CROWD
Decimals	18
Voting Power	1 CROWD = 1 vote

Delegation

Token holders must delegate their voting power before it becomes active:

// Self-delegate to activate your own voting power
governanceToken.delegate(msg.sender);

// Or delegate to another address
governanceToken.delegate(delegateAddress);

Delegation does not transfer tokens — only voting power.

Proposal Lifecycle

State	Description
Pending	Submitted, awaiting discussion period
Active	Voting is open
Succeeded	Quorum met, majority approved
Defeated	Quorum not met or majority rejected
Queued	In timelock waiting period
Executed	Changes applied on-chain
Canceled	Withdrawn by proposer
Expired	Not queued within 7 days of success

On-Chain Dispute Escalation

When off-chain dispute resolution fails, disputes can be escalated to governance:

1. User calls POST /api/v1/dispute/{id}/escalate
2. Dispute is flagged for GOVERNANCE_ROLE holders
3. Token holders vote on the outcome
4. If approved, the score is revised on-chain via ReputationOracle.updateScore()

Security Measures

• Timelock — 2-day delay between vote success and execution
• Quorum — Prevents low-participation attacks
• Proposal Threshold — Prevents spam proposals (100,000 CROWD minimum)
• Vote Snapshot — Voting power locked at proposal creation block (prevents flash loan attacks)