# Proposal Categories

When creating a proposal within our system, it's important to understand the various categories that determine the type, scope, and requirements of each proposal. Below is a breakdown of the proposal categories, which will help guide you in structuring your proposal according to the appropriate category based on risk and impact.

### **1. Low Risk Proposals**

**Description**: Low Risk proposals involve activities that directly engage the community or alter less critical aspects of the protocol:

* **Community Initiatives**: Focuses on community engagement, education, and marketing efforts.
* **Asset Inclusion or Delisting**: Pertains to adding or removing verified pools within the protocol.

**Requirements**:

* **Allowed Roles**: Lead/Core Members
* **Minimum Quorum**: 5% of eligible voting participants.
* **Minimum Votes**: 50% majority needed to pass.
* **Time Lock**: Proposals have a maximum 1 epoch time lock before taking effect.

### **2. Medium Risk Proposals**

**Description**: Medium Risk proposals affect significant operational aspects of the protocol that have moderate risk implications:

* **Liquidity Incentives and Staking Programs**: Adjustments to liquidity provision incentives and rewards.
* **Parameter Adjustments**: Modifications to key protocol parameters that govern operational dynamics.
* **DAO Treasury and Financial Management**: Decisions impacting the management of the DAO's treasury funds.

**Requirements**:

* **Allowed Roles**: Lead/Core Members
* **Minimum Quorum**: 10% of eligible voters.
* **Minimum Votes**: 50% majority required.
* **Time Lock**: Proposals have a maximum 1 epoch time lock before implementation.

### **3. High Risk Proposals**

**Description**: High Risk proposals involve critical changes that can significantly impact the protocol's security, legality, and operational framework:

* **Protocol Upgrades**: Significant smart contract updates or changes.
* **Security Measures**: Enhancements to secure the protocol against potential threats and attacks.
* **Legal and Compliance Issues**: Adjustments ensuring compliance with legal and regulatory standards.
* **Governance Process Changes**: Modifications to the governance model, some of which may bypass voting.
* **Risk Management Policies**: Updates to strategies for managing systemic risks.

**Requirements**:

* **Allowed Roles**: Core Members only.
* **Minimum Quorum**: 15% of participation from eligible voters.
* **Minimum Votes**: 55% majority to pass.


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