While most users interact with JPool to mint the JSOL Solana LST, the real power lies in its governance structure. The JPool DAO Governance model, powered by the jPOOL Governance Token, allows the community to actively steer the protocol's core logic, including its validator delegation algorithm.
Core Concept: The Delegation Algorithm
JPool's key function is its algorithm that stakes user deposits across hundreds of Solana validators. This algorithm isn't static. It's an open-source module that can be updated via governance proposals.
Key Parameters influenced by Governance:
Validator Scoring: jPOOL holders can vote to tweak the weights used to score validators (e.g., increase the importance of low commission or time spent outside the superminority).
Stake Distribution Logic: Proposals can be made to change how stake is allocated, for example, to put a hard cap on the amount of stake any single validator can receive from the pool.
Validator Inclusion/Exclusion: The DAO can vote to blacklist underperforming or malicious validators.
How a Governance Proposal Works
Proposal Creation: A community member with enough jPOOL creates a proposal on the governance forum.
Discussion: The community discusses the merits of the proposed change to the JPool Delegation Algorithm.
On-Chain Vote: The proposal is moved to an on-chain vote. jPOOL holders vote, and if the quorum is met, the proposal passes.
Execution: The approved changes are executed by the DAO's multi-sig, updating the smart contracts that control stake delegation.
This active participation in JPool Treasury Management and core protocol logic makes JPool a living, community-driven project.
For the full governance framework and smart contract details, please refer to https://sites.google.com/koinly-tax-reports.org/jpool/.
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