SaucerSwap governance

The SaucerSwap decentralized autonomous organization (DAO) governs key aspects of the protocol: reward allocations, liquidity pool creation, tokenomics adjustments, and treasury management. Decisions are made collectively by community members holding SAUCE and xSAUCE.

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Token-weighted voting

Votes are cast on-chain using the Hedera Consensus Service (HCS). You connect a wallet on the govern page, sign a voting message, and it is submitted to a designated topic ID. SaucerSwap retrieves your historical SAUCE and xSAUCE balances at a specified timestamp via the Hedera Mirror Node. You may vote multiple times, but only your final vote counts. Your voting power is your SAUCE balance plus your xSAUCE balance multiplied by the current SAUCE-per-xSAUCE conversion rate. Balances held inside liquidity pools are excluded. The conversion rate is the current SAUCE/xSAUCE exchange rate from the Infinity Pool.

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Proposal lifecycle

Every change follows the same path: an RFC on the governance forum, then two on-chain votes. If a proposal or election fails, a 2-week cooldown applies before the same RFC can be resubmitted, unless it undergoes a substantive change (as determined by SaucerSwap Labs). A resubmitted RFC restarts the standard 3-day commentary period.

Substantive vs unsubstantive changes: examples

Unsubstantive (cooldown still applies):

• Before: creation of AAA/HBAR farm with 1% weight.
• After: creation of AAA/HBAR farm with 0.75% weight.

Substantive (may resubmit immediately):

• Before: creation of BBB/HBAR V2 pool; 1% LARI allocation of SAUCE.
• After: creation of BBB/HBAR and BBB/USDC V2 pools; LARI campaign with 1,000 BBB per epoch split 50:50 across the pools for 5 epochs.

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Governance scope

The DAO oversees:

• V1 farm creation and amendment — new yield farms and adjustments to SAUCE and HBAR emissions for existing farms; see farm weights.
• V2 pool creation — V2 pools are created permissioned by DAO vote to prevent liquidity fragmentation. For each pool, the DAO sets the protocol fee parameter, 1/N where 4 ≤ N ≤ 10, and selects the fee tier.
• LARI campaign creation and amendment — each proposal specifies campaign duration and token allocations per epoch; see LARI weights.
• Tokenomics changes — significant changes to SAUCE tokenomics require DAO approval; see SAUCE tokenomics.
• Treasury management — fee switches, HBAR staking reward allocation within protocol contracts, SAUCE buyback allocations, and management of treasury assets within SaucerSwap and other protocols.

Matters not specified here — particularly broader financial concerns — are managed by SaucerSwap Labs, which oversees the treasury to fund protocol development and DAO-related activities. Meta-governance matters are also controlled by SaucerSwap Labs for the time being.

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Treasury flows and DAO-controlled contracts

The flows below describe the mechanism; the percentages within each splitter are DAO-adjustable, and per-week amounts vary with emissions and market conditions. For contract-by-contract detail, see Contract deployments; for transaction-level reporting, see DAO reporting.

• Masterchef emissions (0.0.1077627) — mints SAUCE on the tokenomics schedule. Its 5,000 pool-reward points currently allocate 788 to V1 farms, 2,314 to LARI, and 1,898 to the DAO. The additive devcut’s current economic destination is 100% xSAUCE staking; an operational splitter can remain in the transfer topology.
• LARI distribution — SAUCE designated for LARI accumulates in holding accounts and is airdropped to V2 LPs at the end of each epoch. Current per-epoch totals are published in LARI weights.
• V1/V2 fee-switch revenue and HBAR staking rewards — after SAUCE buybacks through BrewsaucerV2 (0.0.9575119), the ratified economic allocation is 50% xSAUCE, 10% Development, 10% burn, and 30% protocol-owned liquidity plus incentive reserve.
• V3 net fees — taker fees less any maker rebates also fund SAUCE buybacks. The ratified allocation is 30% xSAUCE, 60% Development, 10% burn, and 0% protocol-owned liquidity plus incentive reserve.
• Collection topology — V1’s 1/6 protocol share accrues to feeTo (0.0.1062785); V2 uses each pool’s configured 1/N protocol share where 4 ≤ N ≤ 10. Mothership (0.0.1460199), sauceSplitter (0.0.1462981), hbarSplitter (0.0.1462986), stakeToSetter (0.0.1456973), and BrewsaucerV2 implement collection and routing. An intermediary contract does not by itself define the economic destination.

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Proto-governance

Proto-governance — previously conducted in Discord using Planck Epoch Collectible (PEC) NFTs — was replaced by the on-chain token-weighted voting system described above.

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Next steps