Governance Structure

Aethir’s governance model is structured to ensure decentralized decision-making, involving three primary stakeholder classes: Compute Providers, Checker Node Operators, and ATH Token Holders. Each class has distinct roles and responsibilities within the ecosystem.

Compute Providers are entities that contribute computational resources to the network. They are divided into Enterprise and Edge providers, each electing one representative to the Council. These providers play a crucial role in maintaining the network’s computational capacity.

Checker Node Operators are responsible for validating the performance and reliability of Compute Providers. They collectively appoint a representative to the Council, ensuring the integrity of the network’s operations.

ATH Token Holders participate in governance by voting on proposals and electing representatives to the Council. Their voting power is proportional to their holdings, with additional rights granted to those who stake their tokens, converting them into veATH.

The Council

The Council serves as the operational body overseeing the day-to-day activities of the Aethir ecosystem. It comprises representatives from each stakeholder class, the Indexer, and a Foundation representative. The Council’s responsibilities include discussing and ratifying proposals that impact the ecosystem’s operations.

While the Council manages routine matters, significant decisions, especially those related to the treasury or major governance changes, fall under the purview of the Foundation Board. This delineation ensures that while the Council handles operational aspects, strategic decisions are made with broader oversight.

During the initial two years, only Council Members may submit formal proposals. After this period, ATH token holders with 5% of the circulating supply may directly propose items without Council sponsorship, promoting broader community participation over time.

The Foundation Board

The Foundation Board acts as the final decision-making authority, ensuring that proposals align with Aethir’s mission and legal framework. It holds veto power over proposals deemed misaligned with the ecosystem’s objectives. However, to maintain transparency and community trust, any veto must be publicly justified.

Moreover, vetoed proposals can be overridden by a 75% community vote, ensuring that the Board’s power is balanced by the collective will of the stakeholders. This mechanism provides a check on the Board’s authority, promoting accountability and community engagement.

The Board also manages the treasury, allocating funds for ecosystem growth and development. Its role is crucial in steering the strategic direction of the Aethir ecosystem, ensuring sustainability and alignment with long-term goals.

The Indexer

The Indexer plays a important role in coordinating the allocation of computational resources within the Aethir network. Appointed through a governance vote among staked ATH holders, the Indexer manages off-take and service level agreements, ensuring optimal resource distribution.

To prevent conflicts of interest, the Indexer cannot concurrently serve as a Compute Provider or Checker. The Indexer must possess technical expertise in cloud computing and resource management, ensuring they can effectively oversee the network’s computational needs.

The Indexer serves a three-year term unless removed by a governance vote. They are responsible for reporting to both the Council and the Foundation Board on resource demands and availability, advising on compute-related governance proposals.

Governance Voting Process

Aethir’s governance operates through a structured proposal and voting process, utilizing veATH tokens earned by staking ATH. Voting power is proportional to the amount and duration of staked tokens, encouraging long-term commitment to the ecosystem.

The proposal process includes several stages:

• Temperature Check: An initial phase to gauge community interest in a proposal.
• Debate: A formal discussion period where the proposal is refined and deliberated upon.
• Implementation Preparation: Time allocated for preparing necessary on-chain changes based on the proposal’s context.
• Decision: The final voting stage where stakeholders cast their votes.

Delegation is also supported, allowing veATH holders to assign their voting power to trusted community members. This system ensures that even those unable to participate directly can have their interests represented.

Quorum requirements vary depending on the proposal’s impact, with higher thresholds for proposals affecting rewards and lower ones for protocol or staking changes. This tiered approach ensures that more significant changes receive broader consensus.

Sentinels

To safeguard the ecosystem from potential governance attacks, Aethir has established the Sentinels—a community-elected multisig group. Sentinels possess the authority to veto proposals that pose risks to the network’s integrity. However, their veto power is subject to checks: any veto can be overridden by a 75% community vote.

This mechanism ensures that while the Sentinels can act swiftly to protect the ecosystem, their decisions remain accountable to the broader community. The overriding of vetoes will be instated 24 months after the launch of governance, ensuring enough of the network is circulating to prevent malicious attacks by individual financiers.

Sentinels are also responsible for assessing counterproposals for any governance or operational risk. In situations where a counterproposal may undermine the integrity, security, or objectives of the Aethir ecosystem, the Sentinels retain the right to veto the counterproposal. Any veto exercised must be publicly justified to ensure transparency.

Elections and Amendments

Elections are integral to Aethir’s governance, ensuring that representatives remain accountable and reflective of the community’s evolving needs. Council members, the Indexer, and Sentinels are elected through governance votes. Candidates must meet specific eligibility criteria based on their contributions to the ecosystem.

The governance framework also allows for amendments:

• Class-Specific Proposals: Changes impacting only a specific stakeholder class (e.g., Compute Providers) require approval and quorum from that particular class, preserving each group’s autonomy over matters that specifically impact them.
• Community-Wide Proposals: Proposals with ecosystem-wide implications necessitate broader community approval, often with higher quorum thresholds to ensure broad consensus.

Highlights

• Aethir governance is built on three stakeholder classes—Compute Providers, Checkers, and ATH holders—each with defined roles and voting rights.
• The Council handles daily governance, while the Foundation Board supervises treasury and legal alignment, with limited veto authority.
• The Indexer manages compute allocation and is elected through governance but cannot also operate as a provider or validator.
• Proposals follow a four-stage process (Temperature Check, Debate, Preparation, Decision) and use veATH tokens for voting.
• Sentinels provide emergency veto protection, with decisions subject to override by a 75% vote, ensuring both safety and accountability.