Overview

The Open Dollar protocol is designed for longevity and predictability with a minimal-governance approach we describe as 'Ungovernance'.

In contrast to most other DAO-governed protocols in DeFi where token holders can alter the majority of the platform in drastic ways, sometimes to the detriment of users, the power of the Open Dollar Governance (ODG) holders and DAO is very limited.

The DAO can vote to add new collateral types, but cannot change major aspects of the protocol, such as set new stability rates for existing vaults, mint new OD tokens, change the distribution of fees, or update many of the preset or market determined parameters of the protocol.

Open Dollar’s protocol is non-ungradable and the DAO cannot upgrade the code in any malicious way because the protocol is ungoverned, safeguarding against the risks associated with leaving complete protocol governance solely in the hands of token holders.

This approach aims to establish robust security guarantees for platform users and prevent undue influence over the system's operation.

Read more about Ungovernance and it’s benefits on our blog.