The community can create and vote on proposals. The weight of their vote will be proportional to the amount of SAUCE in their account, where 1 SAUCE token = 1 vote. xSAUCE may also serve as a governance token to reward users who have staked liquidity in the protocol.
The voting process itself is simple: the community creates and votes on time-sensitive proposals that are set to expire after 7 days. Votes are signed messages easily verifiable using the HCS. If a community proposal receives a passing vote by supermajority (> 70%), it will be made into a core proposal. If a core proposal receives a passing vote by quorum (> 50%), it will be enacted.