A core principle of Fei Protocol is its fully decentralized design and minimal dependence on any centralized assets or protocols on Ethereum. Fei Protocol has a DAO called the Fei DAO from the start. The DAO is responsible for utilizing all of the flexible and powerful features of Fei Protocol to continually enhance the protocol in an ever-evolving DeFi space.
Fei Protocol design and implementation minimize the governance for peg maintenance related activities. Beyond the inherent need for the initial protocol tuning, the Fei DAO is primarily responsible for two things: upgrades and integrations.
Parameter tuning and changes that the Fei DAO can make:
change PCV allocations
update bonding curve parameters
adjust rewards from the staking pool
upgrade oracles and other contracts throughout the system
Parameter modifications from Compound implementation:
.25% proposal threshold
12 hour voting delay (3333 blocks)
36 hour voting period (10000 blocks)
24 hour timelock delay
Instead of the COMP token, the Fei DAO is controlled by TRIBE
Fei Protocol implementation enables a flexible access control system. The Timelock is appointed as a Governor⚖️, but it doesn't have to be the only one. It also doesn't have to be a Governor forever. Fei Protocol can appoint autonomous governors to adjust parameters and PCV based on market conditions. Additionally, a tiered governance structure can be implemented where certain changes require higher quorum thresholds and longer timelocks.
Ultimately the Fei DAO makes all of these decisions as the protocol evolves.