MAHA and Governance
This page talks about the MAHA governance token.
MAHAis the governance and utility token that regulates the
ARTHvalue coin and keeps the protocol decentralized. Decentralization is one of the most important features that gives value to the
ARTHtoken. The more decentralized
ARTHbecomes, the easier it becomes for users to trust the functionalities governing
Community members use the
MAHAtoken to vote on key aspects of the ecosystem in order to collectively manage the parameters that keep
ARTHstable and in check. Using democratic frameworks such as governance portals, forums & the power of social discourse, growth is driven by the community and for the community.
Governance can make the following changes
- Update the price oracles: If ever there is a need to change the target price mechanism for
ARTH, governance can decide to vote on a new price oracle for the protocol.
- Set the stability fees: The stability fees further influence how much
MAHAis burnt off for redemption.
- Set the borrowing & redemption rates: Governance can decide on rates to encourage borrowing or redemption to influence the activity within the ecosystem
- Add new minters for ARTH: Governance can get the powers to whitelist addresses or contracts that can mint/burn ARTH. (Relevant for any smart contract upgrades that need to be performed for ARTH).
MAHA means supreme, magnanimous, and being greater than itself
The need for governance comes simply to ensure that the protocol not only stays protected in the dire event of a black swan, but also remains relevant when market situations change.
Since it's difficult to predict what design decisions for
ARTHwill remain relevant for the years to come, some kind of governance is needed to make sure that
ARTHnot only stays relevant but also stay ahead of its time.
At the same time, governance is designed in such a way that it remains as decentralized as possible and shouldn't somehow centralize power to destabilize