The $KARRAT token provides the ability to propose and carry out change and request grants in a decentralized manner for the benefit of the KARRAT Community.
The KARRAT governance structure includes a number of actors but most importantly the following:
KARRAT Community
The power is given to the KARRAT Community (KARRATco), the collective of all holders of the $KARRAT token (and those delegated voting rights by token holders). Other key actors exist within the governance structure not only for admin purposes but also to ensure the security of the Karrat Foundation, KARRAT protocol and the KARRATco. A key actor here is the Security Council.
Security Council
The Security Council has the ability to upgrade the protocol directly and cancel proposals that could jeopardize the KARRAT protocol, KARRATco and/or the Karrat Foundation without delays in case of emergency.
This is a critically necessary role to protect against emergencies in which case the typical slow governance path is not viable for two reasons:
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If there’s a critical vulnerability that can be exploited, it’s counterproductive to broadcast it on the public governance forum before it has been mitigated.
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The fix to such a vulnerability should go into effect immediately and not have the several weeks’ delay of typical governance changes.
The Security Council is bound by the Constitution of the KARRATco to only use its powers when necessary for these sorts of emergencies, and to issue a transparency report in a timely manner after its powers are used. To keep the Security Council in check, the KARRAT Community votes in annual elections for the Security Council’s members.
The Security Council can also trigger non-emergency upgrades, such as routine software upgrades and maintenance. These upgrades don’t require a Community vote to pass.
For a formal articulation of the Security Council’s role within KARRATco’s governance process, refer to the Constitution of the KARRATco.
The future of Karrat governance
The initial governance launch provides the community with the tools it needs: a means of decentralized governance, along with a faster, permissioned upgrade path to ensure the system remains safe in case of emergencies. As for how this system will change moving forward, many open questions remain:
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Can the governance process be further decentralized?
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How and when can the Security Council’s power be further minimized, or eliminated entirely?
Progressive decentralization is a core tenet of KARRATco. These questions don’t have simple answers and will continue to be the topic of lively discussion within the community as the KARRAT technology continues to mature, and as the perceived risk profiles of various states of decentralization change along with it. But crucially, the Karrat governance system controls all aspects of the KARRAT protocol, including the governance process itself.
With the KARRATco in control, decisions about how the KARRAT protocol should evolve over time — including the governance process itself — are in the hands of the KARRATco.