# Governance

<figure><img src="/files/dwYdbV1eKwwVjacqpFS0" alt=""><figcaption></figcaption></figure>

Virtuals Protocol is governed by veVIRTUAL holders. Strategic direction, capital allocation, and protocol upgrades are no longer set by a core team alone. Instead, they evolve through onchain governance transparent, permissionless, and powered by conviction.

This system enables collective decision-making over how the protocol grows, what it funds, and which risks it accepts. veVIRTUAL is not just a staking mechanism, it is a source of voice, responsibility, and control.

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Explore current and past proposals at [gov.virtuals.io](https://gov.virtuals.io)
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### How Governance Works

* **Proposal Creation**

  Any wallet holding ≥0.10% of total veVIRTUAL supply can submit a proposal. Once submitted, the proposal enters a 72-hour comment window. During this phase, voting is disabled and all feedback is recorded onchain.
* **Snapshot & Voting**

  After the comment window closes, a snapshot is taken of all veVIRTUAL balances. This snapshot locks each wallet’s voting power for that specific proposal. Voting then opens for 72 hours, where veVIRTUAL holders can vote “For” or “Against.”
* **Quorum & Execution**

  A proposal is valid only if it reaches 25% quorum of the total veVIRTUAL supply. If quorum is met, a simple majority (50% + 1) determines the outcome. Passed proposals become eligible for execution.

### Principles

* **Permissionless Participation**

  Governance is open to all veVIRTUAL holders. No centralized approval is needed to submit, comment, or vote.
* **Conviction-Based Voting Power**

  Voting power is earned through long-term staking and cannot be rented or delegated. Influence reflects conviction, not capital alone.
* **Structured Deliberation**

  All proposals undergo a fixed discussion and voting cycle to ensure transparency, informed decisions, and community alignment.

### Passed Proposals

**Wave-1 Governance Proposals**

1. **Establishing the Virtuals Foundation**\
   Establishing the Virtuals Foundation to drive ecosystem growth, adoption, and innovation through treasury-backed incubation, partnerships, grants, and talent, advancing Virtuals’ leadership in AI.\
   [Read Proposal](https://gov.virtuals.io/proposal/58238259969716106252633733975150732933829817308503391581801496289223305313092)
2. **Sniper Defense & Yield Fund**\
   Allocated 1% of $VIRTUAL supply to fund anti-sniper operations and generate yield for stakers via defended agent token airdrops.\
   [Read Proposal](https://gov.virtuals.io/proposal/56996763629027767054698714571712096750640983191659498948864059685705038611655)
3. **Performance-Based Grant to Virgen Labs**\
   Introduced milestone-based streaming incentives (up to 6% of supply) for core contributors, aligned to $VIRTUAL performance and market growth.\
   [Read Proposal](https://gov.virtuals.io/proposal/85863080150801247354820503347649561342766624974699481992117779927201501850460)

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Review, debate, and vote: [gov.virtuals.io](https://gov.virtuals.io)
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