Security Model & Governance

User-Sentiment Driven Design in Action.

The 3 Protocol employs a multi-layered, user-sentiment-driven governance model designed to prevent capture, ensure resilience, and align power with proven, long-term stake. Security is enforced through separated powers across the three core protocols.

5.1. Layered Protocol Controls:

Each protocol features distinct actor roles with escalating permissions:

Protocol	Propose / Manage	Pause / Delay	Resume / Veto
The Grove (Asset Mgmt)	3Receipt Holders (Pool-specific)	VW3 Holders	Legends
The Guild (Currency & Bonds)	Creditors (3Bond Holders)	VW3 Holders	Legends
The Reserve (Treasury & Core)	3Fi Stakers (via VW3)	—	Legends

This structure ensures no single entity can unilaterally alter a core function. Changes require consensus from the relevant stakeholder group, can be slowed by the broader governance body (VW3), and can only be overridden by the highest-security actors (Legends).

5.2. Economic Security & Anti-Fragility:

• Non-Debt-Based Backing: GUILD's stability derives from the accumulating assets in The Vault, not from volatile collateral or promises of future redemption. This removes liquidation risks inherent in debt-based systems.

• Self-Regulating Parameters: Key economic parameters (e.g., Reserve Requirement, Arbitrage Fee) are adjusted via phased policy curves (RRCs) ratified by governance, not by discretionary intervention. This creates predictable, rule-based evolution.

• Value-Aligned Incentives: The distribution of power (VW3) and value (PODs, Legends' fee) is explicitly tied to actors who have demonstrated long-term commitment through staking (3Fi) or capital lock-up (3Bonds, 3.NFTs).