Unpacking LitVM's Governance Model

LitVM’s foremost objective is to serve as a technology layer that enhances the utility and functionality of Litecoin. As a tool for advanced payment infrastructure, cutting-edge DeFi applications, real-world assets, and emergent culture, Litecoin has the potential to fulfill a role that far outpaces its current capabilities. Nonetheless, with great advancement and growth comes a new era of responsibility for the entire Litecoin community.

With a host of new applications, sub-communities, asset holders, and fresh users coming online, the Litecoin community is about to grow both vertically and horizontally, that is, to both become larger and more diverse. On that accord, just as important as its rising decentralized applications, assets, and infrastructure, LitVM’s newly designed governance model will play a vital role in the advancement of the Litecoin ecosystem. After the initial chain boostrapping phase, the Litecoin DAO will be activated, becoming key to determining the direction of the evolution of LitVM.

LitVM’s governance model has been designed in-house and tailored directly to the Litecoin community’s founding principles to ensure decentralized, democratic decision-making processes. Ultimately, LitVM’s native $LITVM token will serve as a vehicle for participation, incentive modeling, and stewardship. While intended to remain adaptable and future-oriented, the mechanics, organizations, and leadership positions involved in LitVM’s governance model serve as a robust starting point to kick off community-oriented operations.

{{separator}}

The LitVM Treasury Board

LitVM’s governance is anchored by the LitVM Treasury Board, a body tasked with overseeing the allocation of 51% of the $LITVM token supply that has been reserved specifically for community and ecosystem development. This majority allocation is designated toward a variety of initiatives aimed at sustainable growth, including a grants fund to support innovative projects, airdrop incentives to engage relevant communities such as Litecoin and Polygon users, staking and liquidity incentives to encourage participation, governance rewards for active token holders, and a dedicated Ordinals/Runes fund to explore new use cases for Litecoin. The Treasury Board, composed of five seats, brings diverse perspectives to the table: two co-founders of LitVM (Roc Zacharias and Aztec Amaya), David Schwartz of the Litecoin Foundation, a seat for community majority opinion, and one additional member yet to be announced. All together, the composition of the Treasury Board is designed to ensure a balance of relevant expertise and community voice.

{{separator}}

LitVM’s Community Governance Process

As a matter of principle and procedure, LitVM’s governance processes will always begin with $LITVM token holders, who have the power to propose ideas and initiate temperature checks through a dedicated forum. As opposed to many other Web3 communities where proposals can only be submitted from within founding teams or boards, LitVM’s community forum acts as a community-first platform where $LITVM holders can submit concepts or proposals for consideration. The simplicity and cleanliness of this model – combining initial community proposals with Board oversight – lay a strong foundation for scalability. Temperature checks serve as an efficient filter, saving the Treasury Board time and enabling a streamlined review process while encouraging broader participation.

If a temperature check garners sufficient support, the Board votes on whether to advance it to the next stage. Upon approval, the proposal returns to the token holders, who can then submit a detailed, final version. Subsequently, the Treasury Board conducts a final vote, determining whether the proposal is implemented. LitVM’s iterative, multi-step approach has been developed by long-time Web3 professionals with deep experience in decentralized governance processes, and has been designed to ensure a proper balance of thorough vetting, genuine community input, and diverse board representation.
‍

{{separator}}

The Future of LitVM Governance

Designed with attention to every detail, LitVM’s governance model is intended to be a living framework for achieving community consensus and supporting democratically driven processes. Nonetheless, LitVM’s governance model is also intended to be a living, breathing framework. Over time, as Web3 technologies advance and markets evolve, LitVM’s governance processes will adapt based on feedback, performance, and emerging opportunities.
‍

{{separator}}

Community Governance for All

Last but not least, LitVM’s governance model is not just for $LITVM tokenholders – nor is it intended to be exclusive along any other lines. Governance discussions and temperature checks will remain open for any and all community members to share their opinions, perspectives, and insights. Ultimately, LitVM aims to establish and maintain a balance between oversight and grassroots empowerment, which is the recipe for the sustainable operation of a truly decentralized, open network. With a robust, balanced community governance model at the helm, LitVM will have the best opportunity to drive Litecoin forward into the mass market as a powerful platform for everyday digital payments – and a whole lot more.

‍