> For the complete documentation index, see [llms.txt](https://hyperspac3.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperspac3.gitbook.io/docs/governance/governance-process.md).

# Governance Process

The governance process for HyperSPAC3 is designed to be **simple**, **transparent**, and **community-driven**. Token holders have the power to submit proposals and vote on decisions, ensuring that all choices reflect the collective will of the community. Below are the detailed requirements and processes for **proposal submission**, **voting**, and **smart contract execution**.

**Proposal Submission**

To submit a proposal, token holders must hold a minimum of **5% of the total $SPAC3 supply**. This ensures that only stakeholders with a **meaningful stake** in the project can propose significant changes, such as acquisitions, treasury allocations, and revenue distribution. Proposals will cover areas such as:

* **Asset acquisitions**: Proposals to acquire new income-generating assets.
* **Treasury allocations**: Decisions on how funds in the Treasury should be used.
* **Revenue distribution**: How profits from assets should be distributed among token holders.

This threshold ensures that proposals are submitted by those who have a **long-term investment** in HyperSPAC3 and are committed to the project’s success.

**Voting System**

* **Voting Power**: Each $SPAC3 token represents **one vote**. The more tokens a participant holds, the more influence they have in the decision-making process.
* **Voting Eligibility**: Token holders with at least **0.5% of the total $SPAC3 supply** will be eligible to vote on proposals. This allows active token holders to engage in governance while maintaining a level of **exclusivity** to prevent vote manipulation by small holders or malicious actors.
* **Quorum**: To ensure that decisions reflect the broader community’s opinion, proposals will require a **quorum of at least 30%** of the total token supply to be voted on. This prevents decisions from being made by a small fraction of the community, ensuring that **important changes** have the support of a broad base of stakeholders.
* **Approval**: A proposal will pass if it receives at least **60% approval** from the voting community. This ensures that decisions are made with a clear majority and reflects the collective will of **serious investors**.

**Smart Contract Execution**

Once a proposal is approved, the decision will be **automatically executed via smart contracts**, ensuring transparency, security, and efficiency. Examples of automatic execution include:

* **Acquisition of an asset**: Once a proposal to acquire an asset is approved, the smart contract will release the necessary funds from the Treasury and complete the transaction. This ensures that the process is **transparent** and that the **agreed-upon actions** are carried out without manual intervention.
* **Revenue distribution**: Approved distributions will be automatically paid out to **stakers** and **liquidity providers** in proportion to their holdings. This ensures **timely and transparent payouts**, directly reflecting the **success** of the project and the community’s contributions.

#### **Conclusion**

The governance model for HyperSPAC3 is designed to ensure that decision-making is **transparent**, **secure**, and **community-driven**. By requiring meaningful stakes for proposal submissions and voting, we ensure that governance is in the hands of **serious long-term participants** while still maintaining **broad accessibility** for token holders. The use of **smart contracts** for execution guarantees that decisions are implemented in a **secure and efficient manner**, further building trust in the system.