Governance

Introduction

The Acre DAO is designed to support the long term stability and growth of the Acre protocol. The role of the Acre DAO is to maintain certain governable protocol parameters and deploy upgrades to the protocol.

ACRE tokenholders are able to participate in protocol governance by locking their tokens to receive veACRE, which is used to determine how staked BTC is allocated between yield sources. Furthermore, Acre DAO manages protocol owner liquidity and token incentives, which are used to promote the use of stBTC.

The ACRE Token

ACRE is the utility token of the Acre Protocol and Acre DAO. Users can lock their ACRE tokens to receive veACRE.

veACRE

veACRE is used to vote on proposals to improve the Acre Protocol initiated by Acre DAO members.

To receive veACRE, ACRE holders opt to lock their tokens for up to 4 years.

In return, veACRE holders gain the following abilities:

• Propose and vote on Acre DAO governance proposals

• Update protocol parameters

• Vote to allocate the stBTC portfolio

In the future, the DAO could vote to distribute Acre Protocol fees to veACRE lockers.

Other Protocol Matters

veACRE holders have the option to vote to add or remove Bitcoin L2 support (and potentially, other yield sources) in the Acre protocol. An increase in the variety of BTC yield strategies can potentially bring additional yield to the protocol, and offset risks associated with specific protocols. It will be up to Acre DAO to determine the applicable risk/reward tradeoffs for each L2 or yield source.

Protocol fees may be subject to change depending on protocol governance.