How it Works

HAI governance is facilitated through its native governance token: KITE. HAI will have KITE governance enabled on day one. HAI Governance is administered live on-chain through Governor, and is enabled by and built upon the Tally.xyz platform.

KITE token holders can participate in governance by submitting and voting on proposals which impact the HAI network and its technologies. HAI Governance is token-weighted, meaning the number of KITE tokens held determines a given member's voting power. These tokens can be self-delegated for direct participation, or delegated to other wallets to vote on behalf of the holder/delegator. Delegation can be revoked or changed at any time through the Tally platform. (See: Delegation for more information.)

KITE holders have authority over decisions related to changes in the HAI protocol, distribution of the KITE treasury, and other important decisions determined by the community. Examples of such decisions include adding new collateral types, changing the redemption rate, funding community initiatives, conducting buybacks and burns, and rewarding liquidity providers.

HAI DAO uses a GEB framework, similar to RAI, to issue stablecoins. GEB provides a framework for governance minimization, where control over various components and parameters can be transferred to external contracts overtime as the DAO matures. This process involves meeting specific requirements, such as infrastructure auditing, surplus accumulation, and minimizing specific control over core contracts.