SupremeDAO's commitment to effective asset allocation for YAI holders naturally leads us to the important aspect of governance within the DAO. This governance is crucial in determining which strategies are implemented for yield generation. In our system, strategies are carefully selected through a DAO-driven process, where they must be whitelisted and approved before activation. Once a strategy receives the green light from the DAO, it gains access to a portion of the Vault to start generating yield.

This decision-making process is powered by our native token, SUP. For SUP holders to engage in governance and have a say in strategy approval, budgeting, and other key decisions, they must first stake their SUP in specific liquidity pools like SUP-wstETH or SUP-crvUSD. By doing so, they receive Pool tokens, which can be locked to obtain waSUP tokens. These waSUP tokens represent the voting rights within the DAO.

Voting within SupremeDAO will take place on Snapshot, utilizing the Reality module from Zodiac to facilitate the process. While the specific voting parameters and governance thresholds are still under consideration, the expectation is for decisions made by SupremeDAO to be executed automatically following the snapshot voting.

To safeguard against potential coordinated attacks on the governance system, SupremeDAO will implement a safeguard mechanism by granting veto rights to a group known as the SupremeDAO Guardians. These guardians will have the authority to veto the enabling or disabling of new strategies if they identify what appears to be an attack on the DAO. This measure is designed to add an extra layer of security and ensure the integrity and stability of SupremeDAO's governance process.

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