# Governance (Upcoming)

Governance is a core pillar of the Wagon Network protocol. Token holders of `stkWAG` are empowered to shape the direction of the network through transparent governance processes.

Wagon’s governance model ensures that decisions — such as approving loans, adjusting platform parameters, and managing treasury operations — are driven by the community.

## Governance Structure

Wagon Network’s governance is divided into two phases:

### **1. Off-Chain Governance**

This is the starting point of every proposal. Discussions and drafts are first posted on the **Wagon Forum** (Request for Comment) to collect community input and iterate ideas transparently.

Off-chain governance serves to:

* Encourage open discussion and feedback
* Avoid spam or low-quality proposals on-chain
* Build alignment before a formal vote

### **2. On-Chain Governance *****(Coming Soon)***

After sufficient feedback is gathered off-chain, proposals may move to the blockchain for formal voting. On-chain governance will include:

* **Proposal creation** on-chain (by the Council or eligible users)
* **Referendum voting** using `stkWAG` tokens
* **Execution** of decisions through smart contracts (e.g., fund disbursement, parameter change)

On-chain proposals may include:

* Loan approvals
* Protocol upgrades
* Treasury allocations

> 🚧 *Note: In the current phase, governance is limited to off-chain only. On-chain governance will be launched once Wagon DeFi infrastructure reaches operational stability.*