Phase One: Security-Council

The Security-Council phase marks the transition from testnet to mainnet governance. This phase is designed to ensure the security and stability of the network during its early stages of operation.

Once the constitution is ratified and the creation of the MILLI token is approved, the MILLI token will be launched and distributed to community participants. The Treasury smart contract will then be created, and on-chain governance will now own the Millicent DAO treasury.

At this stage, onchain governance owns the treasury of the network. The Security Council will serve as an interim governance body with specific responsibilities to ensure a stable foundation for the ecosystem to grow.

Key Responsibilities:

• Network Security Oversight: Monitor the network for vulnerabilities or malicious activities and take prompt quick action to mitigate risks.

• Protocol Upgrades Approval: Review and approve essential updates and patches to the protocol that are crucial for security and performance enhancements.

• Emergency Response Mechanisms: Activate and manage emergency protocols in the event of security breaches, bugs, or other critical incidents that threaten the network's functionality.

• Stakeholder Communication: Provide transparent updates to the community about security measures, incidents, and resolutions to maintain trust and openness.

Formation of the Security Council:

• Selection Criteria: Members will be chosen based on their expertise in security, development, onchain governance, and protocol design; their commitment to the Millicent One project; and their reputation within the wider community.

• Selection Process: Four members of the Security Council will be proposed by core contributors to the Protocol, while three members will be proposed by the community.

• Diverse Skills and Viewpoints: Efforts will be made to include individuals from various backgrounds and regions to ensure a wide range of perspectives.

• Term and Rotation: Council members will serve for a defined term with a staggered rotation system to introduce fresh insights while retaining experienced oversight.

Governance Mechanisms:

• Decision-Making Process: The council will operate on a consensus model for critical decisions, requiring agreement from 4 of 7 members.

• Checks and Balances: While the council has significant responsibilities, its powers are limited to security-related matters, preventing overreach into other governance areas.