> For the complete documentation index, see [llms.txt](https://nebula-18.gitbook.io/nebula/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nebula-18.gitbook.io/nebula/tech-overview/nebula-technology-overview/governance/governance-framework.md).

# Governance Framework

Nebula adopts a **DAO (Decentralized Autonomous Organization)** structure, where decisions are proposed, voted on, and executed by the community.

#### **Proposals**

* Any token holder can submit a governance proposal after meeting a minimum threshold of Nebula tokens.
* Proposals cover various aspects of the protocol, such as:
  * Adding new collateral assets.
  * Adjusting collateralization ratios and interest rate parameters.
  * Allocating funds for ecosystem growth.
  * Updating smart contracts and deploying new features.

#### **Voting**

* Governance participants vote on proposals using their Nebula tokens.
* Voting power is proportional to the number of tokens held or staked.
* A quorum must be reached for a proposal to be considered valid.

#### **Execution**

* Approved proposals are executed via smart contracts to ensure transparency and immutability.
* Certain changes, such as protocol upgrades, may be subject to a **timelock period**, allowing community review.