About Q Protocol - DAO and dApp Security and Governance

What is Q?

Q is a decentralized governance layer for Web3. It establishes the concept of Shared Governance Security: A new key primitive in the modular blockchain stack. Applications and protocols can opt into Q’s governance infrastructure for an instant security upgrade. As a full-scope governance operating system, the Q Protocol solves some of crypto’s most pressing problems: It prevents governance exploits and reduces legal and regulatory risks associated with centralized decision making. Moreover, Q expands the scope of what is possible on-chain, enabling new and innovative business models to emerge in Web3. Built as a fully EVM-compatible Layer 1 for maximum security, the protocol is live with a full set of infra and applications supporting the ecosystem.

Governance, blockchain and value creation

Q is focused on providing best-in-class governance services, the biggest driver of long-term value in crypto and beyond.

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Why does governance matter?

Governance is the key to value creation. This has been proven time and again for companies, public goods and nation states. Those with the best governance systems are the ones that create the most value. Governance frameworks in Web3 today fail to address the real problem, focusing on tooling and simplistic token holder voting. This invites governance exploits, centralization and excessive regulation. To unlock the true value of Web3, we need governance that goes beyond code-is-law.

What is shared governance security?

The concept of Shared Governance Security rests on a simple principle: the cost of corrupting governance must be higher than the potential reward. This requires an external security anchor. Q allows other projects to opt into its governance framework. Just like dApps and L2s use Ethereum’s security properties for transactions, they can use Q’s security properties for governance. The cost of corrupting their governance is instantly increased, rendering governance attacks unprofitable.

How does it work?

Q’s core governance architecture is based on the trinity of governance: rule setting, enforcement and dispute resolution. All three elements are essential and need to be integrated for governance to actually work. A set of checks and balances ensures the integrity of the system. Q is not a governance “experiment” – it is a core piece of the modular blockchain stack designed to protect real value.

How can projects use Q’s opt-in governance features?

Standardized features

Easily adopt standardized governance features that cover common needs like smart contract upgrades and DAO treasury protection.

Customized integration

For unique governance needs, projects can draft custom proposals tailored to their specific requirements.

How do projects benefit from Q?

Enhanced Security

Leverage Q as external security anchor to protect what is valuable.

Cost & Effort Savings

Reduce overhead of maintaining complex governance setups. Free up resources to focus on core priorities.

Decentralization

Mitigate regulatory risk of dependence on centralized governance actors.

What are the Economics of Q?

Q sustains its economic ecosystem through its native QGOV token and fee model. In addition to transaction fees, Q stakeholders receive governance fees from protocols that opt into Q’s governance features. These fees reflect the value created on the application layer. Q’s competitive fee structure creates a sustainable economy. By linking value creation and security, Q aligns incentives to stabilize its economy over the long-term.

Fee Distribution Between QGOV Holders