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Spark Governance

Overview

Spark's governance system defines how the Spark operates and evolves. The governance process centers around updating the Spark Agent artifact in the Sky Atlas, which controls key protocol parameters including budgets, risk settings, asset onboarding, protocol integrations in the Spark Liquidity Layer, and new chain deployments.

The governance process creates Atlas Root Edit Proposals to modify the Spark Agent artifact, ensuring all protocol changes are transparent and aligned with the Sky Atlas.

Key Participants

SPK Token Holders

SPK token holders are the foundation of Spark governance. They can:

  • Vote directly on proposals using their SPK tokens
  • Delegate their voting power to trusted delegates
  • Participate in all governance decisions affecting the protocol

Delegates

Delegates are trusted community members who:

  • Vote on behalf of users who have delegated their SPK tokens
  • Represent the interests of their delegators in governance decisions
  • Must be whitelisted to receive delegated voting power

Note: The delegate application process is currently not open as the system is in its bootstrapping phase. Users can choose from existing whitelisted delegates.

Spark Risk Council (SRC)

The Spark Risk Council serves as the protocol's risk assessment body:

  • Purpose: Identifies, assesses, and mitigates risks in governance proposals
  • Mandate: Reviews proposals for potential risks and can prevent malicious or high-risk proposals from proceeding to community vote
  • Review Scope:
    • Security vulnerabilities and operational attack vectors
    • Market and treasury risks
    • Economic risks
    • Alignment with the Sky Atlas and Spark governance framework

Operational Facilitator

The Operational Facilitator ensures smooth governance operations by:

  • Verifying proposals align with the Sky Atlas
  • Preparing and scheduling Snapshot polls for approved proposals
  • Managing the weekly governance cycle timeline

Governance Process

1. Proposal Submission

All governance proposals must be submitted as forum posts in the Spark Prime section of the Sky forum. Only eligible proposers can submit proposals:

  • Holders of 1% of total SPK supply (100 million SPK tokens)
  • Nested contributors (such as Phoenix Labs)

2. Weekly Governance Cycle

Spark governance operates on a structured weekly cycle:

  • Cycle Start: Every Monday
  • Submission Deadline: Friday 8:00 AM UTC
  • Late Submissions: After the deadline, inclusion in the current cycle is at the Operational Facilitator's discretion

3. Review Process

Spark Risk Council Review

  • Duration: 1 week from the start of the governance cycle
  • Authority: Can reject proposals that pose substantial risks or are malicious
  • Outcome: Posts a forum review stating whether the proposal is rejected or can proceed to voting

Operational Facilitator Review

  • Focus: Ensures proposals align with the Sky Atlas
  • Requirement: Both SRC approval and Operational Facilitator approval needed to proceed to voting

4. Community Voting

Once approved by both reviewers, proposals proceed to Snapshot voting:

  • Platform: Snapshot (off-chain voting)
  • Duration: 3 days
  • Approval Threshold: More than 50% of votes in favor (excluding abstentions)
  • Voting Options: Vote directly with SPK tokens or through delegated voting power

How to Participate

Direct Voting

  1. Hold SPK tokens in your wallet
  2. Connect to Snapshot when voting opens at https://snapshot.box/#/s:sparkfi.eth
  3. Cast your vote directly on proposals

Delegation

  1. Choose a whitelisted delegate who represents your interests. You can do this at https://app.spark.fi/spk/governance or on Snapshot at https://snapshot.box/#/s:sparkfi.eth/delegates
  2. Delegate your SPK voting power to a specific delegate.
  3. Your delegate will vote on your behalf in future proposals

Important: Only delegation to whitelisted addresses counts toward voting power. Delegation to non-whitelisted addresses will not grant voting power.

Implementation Process

Successful Proposals

When a proposal passes community voting:

  1. Atlas Update: The Sky Atlas is updated with the approved changes
  2. Code Implementation: If technical changes are needed, a Spark Spell is created with the required modifications
  3. Execution: The Spark Spell is executed through the established Sky Spell process

Failed Proposals

Proposals that do not meet the approval threshold are not implemented and do not proceed to Atlas updates.

Additional Resources

FAQ

Who can submit governance proposals?

Only holders of 1% of the total SPK supply (100 million tokens) or nested contributors like Phoenix Labs can submit proposals. This threshold ensures proposers have significant stake in the protocol's success.

How long does the governance process take?

The complete process takes approximately 2-3 weeks:

  • Proposal submission before cycle starts (up to 1 week)
  • 1 week for reviews (SRC + Operational Facilitator)
  • 3 days for community voting
  • Additional time for implementation if the proposal passes

Can I change my vote after submitting it?

Yes, votes can be changed during the voting period before it closes.

What happens if I delegate my tokens but disagree with my delegate's vote?

You can revoke your delegation at any time and vote directly, or switch to a different delegate whose views better align with yours. However, your voting power for each proposal is determined by your SPK balance and delegation at the time the poll is created, not when you cast your vote.

How do I become a delegate?

The delegate application process is currently closed as the governance system is in its bootstrapping phase.

What types of changes require governance approval?

All significant protocol changes that impacts the risk profile of the protocol require governance approval, including:

  • Risk parameter adjustments
  • Onboarding new assets
  • Protocol integrations
  • New chain deployments