Direct Participation of LQ Holders in Cardano On-Chain Governance

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Direct Participation of LQ Holders in Cardano On-Chain Governance

This proposal aims to strengthen the direct participation of LQ holders in the governance of the Cardano ecosystem.

At present, the DRep role for the Liqwid DAO is held by F. Volery under the current delegation arrangement. To improve transparency, neutrality, and broader community participation, it is proposed to replace the current direct DRep representation model with a direct governance process involving LQ holders.

Proposed governance model

Under this model:

  • LQ holders will be able to vote directly on relevant Cardano on-chain governance proposals.
  • Voting options will be:
    • Yes
    • No
    • Abstain
  • The majority result from LQ holders will be replicated in the Cardano on-chain governance vote.

This allows governance participation to reflect the collective decision of token holders rather than a single representative.

Delegation adjustment

As part of this transition:

  • The current ADA delegation attached to the DRep role will be removed.
  • F. Volery may continue to vote independently only with ADA personally delegated to him outside of the LQ governance process.

Operational implementation

Once this change becomes effective:

  • The core team should publish all relevant Cardano on-chain governance proposals for LQ holder voting without delay.
  • This is particularly important as several governance proposals are currently open and some expire by 24 May 2026.

If any Cardano governance proposal is not submitted to LQ holders for voting, the reason should be communicated clearly to the community.

Objective

The objective of this proposal is to:

  • Improve direct governance participation
  • Reduce centralization of voting power
  • Strengthen transparency

Proposed outcome

If accepted, this proposal establishes a direct governance mechanism whereby LQ holders participate in Cardano governance decisions collectively, and the resulting majority decision is executed by the designated on-chain governance process.

Do you approve this proposal.

  • Yes — I support this proposal. The LQ governance process will vote collectively on relevant Cardano on-chain governance proposals, and the majority result will be executed.
  • No — I do not support this proposal. The current governance process remains unchanged, with F. Volery continuing to vote on Cardano governance proposals using the ADA currently delegated by the Liqwid DAO.
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