# XIP-13 (In Development)

Author: Immutablemad (Sebastian Solano)\
Date: Jun 11, 2025

### Overview

XIP 13 introduces the formal launch of XNET’s on chain governance system by establishing a two group governance model based on economic participation through staking. It replaces informal governance processes with a transparent structure where both leadership and network participants can contribute to decision making in distinct but interconnected ways.

Governance is divided into:

* Council Members – A capped group of elected leaders who guide high level strategy and operational decisions.\ <br>
* Governance Contributors – Community members who stake tokens to participate in governance votes. This role is open to anyone who wants to actively support and influence protocol development.\ <br>

Both groups are required to stake $XNET to access governance rights. Upon staking, participants receive $XGT, the official governance token of XNET. $XGT is used to vote and must be deposited into the governance platform to exercise voting rights. This structure ensures that governance participation is directly tied to meaningful economic alignment and long term commitment to the protocol.

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### Governance Model Structure

#### 1. Council Members

Council Members are elected representatives responsible for reviewing proposals, setting priorities, and executing strategic decisions that guide the evolution of XNET. They form the Working Group Council and have elevated authority in governance through dedicated voting sessions.

**Requirements to Become a Council Member:**

* Community Election: Individuals must be approved through an official governance vote.\ <br>
* Minimum Stake: A minimum of 100,000 $XNET must be staked and locked in a governance smart contract.\ <br>
* Term Commitment: Each member serves a 6 month renewable term.\ <br>
* Council Cap: A maximum of 7 council members may serve at any time to prevent centralization and ensure efficiency.\ <br>

Council members must keep their full stake locked for the duration of their term. Any attempt to withdraw the stake before the term ends disqualifies the member and voids governance authority.

**Role of the Council:**

* Oversee proposal reviews and prioritization.\ <br>
* Vote on strategic protocol upgrades.\ <br>
* Coordinate subgroups and initiatives.\ <br>
* Represent community interests in a formalized, structured manner.\ <br>

#### 2. Governance Contributors

Governance Contributors are community members who support governance by staking $XNET and participating in general governance votes. Unlike Council Members, Contributors do not need to be elected or serve in official roles.

**Participation Model:**

* Open Access: Any wallet can participate by staking $XNET into the governance staking pool.\ <br>
* No Minimum Stake Required: There is no fixed threshold to begin participating.\ <br>
* Flexible Staking: Stake can be deposited and withdrawn at any time without lockups.\ <br>
* Governance Token Issuance: Upon staking $XNET, participants receive $XGT, XNET’s official governance token. $XGT is used to represent governance power and must be deposited into the governance platform to participate in voting.\ <br>
* Voting Weight: Determined by the amount of $XGT held at the time of vote execution.\ <br>

This flexible design ensures that participation is accessible while still linking voting power to economic involvement. It reduces Sybil risk by requiring at least some token commitment but avoids barriers that could limit community engagement.

**Role of Governance Contributors:**

* Vote on protocol wide proposals.\ <br>
* Submit and support new XIPs.\ <br>
* Signal preferences and feedback through governance votes.\ <br>
* Help legitimize and validate changes from a broader community perspective.\ <br>

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### Governance Vote Types

There are two types of votes in the new governance system:

* Council Votes: Reserved for operational decisions, elections, or Working Group matters. Only Council Members can vote.\ <br>
* General Votes: Open to all Governance Contributors who have staked into the governance pool. These cover major protocol changes, budget approvals, incentive plans, and upgrades.\ <br>

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### Transition Plan

* Existing Council Members may continue serving until the end of their current term. After that, they must meet the new requirements to be eligible for reappointment.\ <br>
* A one time election cycle will be conducted to reconstitute the Council under the new rules.\ <br>
* The governance staking module will be deployed, allowing both Council Members and Governance Contributors to begin staking.\ <br>

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### Benefits of This Model

* Aligned Incentives: Economic commitment is tied directly to governance power.\ <br>
* Transparency: Elections, staking data, and proposal voting are all public.\ <br>
* Decentralization: Council cap prevents power concentration, while contributor model ensures broad participation.\ <br>
* Security: Staking based participation reduces manipulation and spam.\ <br>
* Scalability: The system is built to grow with the network.\ <br>

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### Conclusion

XIP 13 transforms XNET governance from informal coordination into a structured, permissionless, and trust aligned system. By empowering both Council Members and Governance Contributors, the protocol now enables long term, sustainable community ownership of the network’s direction. This launch sets the foundation for transparent leadership, resilient systems, and accountable decision making across the entire XNET ecosystem.

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