> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/token-overviews-1/fisc/governance.md).

# Governance

FISC functions as the heart of on-chain governance for the Bitcoin Dollar protocol, giving token holders the power to shape nearly every major aspect of the system. Every six months, FISC holders gather on Snapshot to debate, draft, and vote on proposals that span a wide array of topics, including:

* Protocol Parameter Adjustments
  * Fee Rates: Setting or tuning origination fees, redemption fees, and performance-based charges to balance user incentives with protocol sustainability.
  * Yield-Split Allocations: Deciding how platform revenues—such as lending interest or trading fees—are split between stakers (sBTCD) and protocol reserves.\ <br>
* New Asset & Product Onboarding
  * Collateral Expansion: Voting on whether to introduce additional assets (e.g., ETHD, SOLD, BOLD (Bitcoin/Gold) as backers for the dollar-pegged token, alongside the vetting of oracles and risk parameters.
  * Derivative & Structured Products: Approving launch of new instruments—such as options-based vaults or leveraged yield strategies—that leverage BTCD’s stability and yield features.\ <br>
* Treasury Management & Grants
  * Reserve Fund Allocations: Directing the protocol’s accumulated reserves into real-world asset initiatives, ecosystem grants, or safety modules designed to insure against extreme market events.
  * Ecosystem Incentive Programs: Establishing or renewing liquidity mining campaigns, developer grants, and partnership incentives to accelerate builder activity.\ <br>

Proposals typically begin as drafts on the community governance forum, where ideas are refined through feedback rounds and risk analyses. Once a draft achieves sufficient on-forum support, it is formally posted on Snapshot with clear governance parameters, execution scripts, and estimated timelines.&#x20;

Upon passing the vote threshold, an on-chain governance executor automatically enacts the changes—whether that’s upgrading the protocol’s smart contracts or sending treasury funds.

Through this rigorous, transparent, and community-driven process, FISC holders ensure that the Bitcoin Dollar protocol remains adaptive, well-secured, and aligned with the evolving needs of users and builders alike.

<br>