LP-0089Finalgovernancesovereigndefil1l2

LP-089: Per-Chain Governance Isolation

Abstract

Defines the sovereign governance model for Lux L1/L2 chains. Each chain (Zoo, Hanzo, SPC L2s; Pars L1) maintains its own independent governance: its own governor contract, its own treasury, its own parameter set. The primary C-Chain DAO (LP-085) governs cross-chain protocol parameters only. L1/L2 chains are sovereign within their domain.

Specification

Governance Layers

| Layer | Scope | Governor |

|-------|-------|----------|

| Protocol | Cross-chain parameters, validator set, fee split ratios | C-Chain DAO (LP-085) |

| Per-chain | Chain-specific parameters, local treasury, DeFi incentives | Per-chain Governor |

Per-Chain Governor

Each L1/L2 chain deploys its own Governor contract (LP-086 template) with chain-specific voting token:

| Chain | Governance Token | Quorum |

|-------|-----------------|--------|

| Zoo | vZOO | 4% |

| Hanzo | vHANZO | 4% |

| SPC | vSPC | 4% |

| Pars | vPARS | 4% |

Sovereign Parameters

Each chain independently controls:

| Parameter | Description |

|-----------|-------------|

| Gas pricing | Base fee target, minimum gas price |

| Block limits | Gas limit, block size |

| DeFi incentives | Liquidity mining allocations |

| Local treasury | Spending from chain-specific fee revenue |

| Contract upgrades | Chain-specific protocol contract updates |

Cross-Chain Boundaries

The C-Chain DAO retains authority over:

Validator set composition and staking parameters.
Warp messaging configuration.
Cross-chain fee collection ratios (LP-080).
Network-wide protocol upgrades (node software).

Dispute Resolution

If a per-chain governance decision conflicts with protocol-level parameters, the protocol-level DAO takes precedence. The C-Chain Governor can veto per-chain decisions that affect cross-chain security via the protocolOverride() function.

Security Considerations

1. L1/L2 chains cannot unilaterally modify validator sets or Warp messaging. These remain under protocol governance.

2. Each chain's governance token is independent. A whale on Zoo cannot influence Pars governance.

3. The protocol override power is a safety valve, not routine. It requires 67% supermajority of the C-Chain DAO.

4. Governance isolation means a compromised per-chain DAO cannot affect other chains or the protocol.

Reference

| Resource | Location |

|----------|----------|

| Governor template | github.com/luxfi/standard/contracts/governance/LuxGovernor.sol |

| Per-chain governance configs | github.com/luxfi/standard/contracts/governance/ |

Copyright

Licensed under the MIT License.