As Sumer matures, the protocol will undergo progressive decentralization and eventually be governed by a DAO consisting of SUMER token holders and governance structures both on-chain & off-chain. The founding team will bootstrap the initial release of SUMER. The SUMER token will be required to firstly bring forth, then vote on, proposals (SUMER Improvement Proposals) that would affect key parameters such as economics, security, and development of the protocol.
Examples of parameters that could be voted on:
- Interest Rate Model
- The addition of assets that meet the risk requirements of the protocol
- Risk parameters for over-collateralization and liquidation
- Changes to the Liquidity Mining Program to adjust incentives depending on market conditions
- Improvements to the protocol such as changes to smart contracts and governance processes