Governance

The PegaSys Network governance model is designed to ensure transparency, security, and decentralized decision-making across the network. The governance structure includes the following components:

• Node Operators: Participants who operate the nodes in the network, stake wBTC. They have voting rights proportional to their stake.

• Community Members: Users of the network who can propose and vote on protocol changes, submit challenges, and engage in governance discussions. Voting weight is determined by their activity and contribution to the network.

• Governance Council: A multi-signature wallet controlled by key stakeholders (node operators, developers, community representatives) responsible for making high-level decisions, including protocol upgrades and dispute resolutions.

Smart Contract Upgradability

The smart contracts acting as the “higher” authority for the PegaSys Network are designed to be upgradeable, ensuring the network can evolve while maintaining security and trust.

Yield Distribution

A portion of the yield generated by the network is redistributed to the node operators in order to compensate them. The exact portion of total fees to be allocated to operators can be left to governance.