Governance: Introduction

Managing the fractionalization protocol.

A step-by-step walkthrough for creating a (local) governance proposal can be found at https://blog.niftex.com/nft-governance-walkthrough/

There are two types of governance in NIFTEX: Global Governance and Local Governance.

  • Global Governance controls variables and modules that apply to all fractionalizations in the NIFTEX system. Global Governance is controlled by the Network Operator, which will be a DAO in the short-to medium term. Global Governance can also disable modules for specific fractionalizations in exceptional circumstances.

  • Local Governance pertains to three areas controlled by fraction holders of a particular fraction set:

    • Overriding a subset of default variables provided by Global Governance.

    • Adjusting local-only variables, such as setting a different governance contract or changing the address of an artist.

    • NFTs with rights (e.g. a virtual parcel with building rights) that have been fractionalized. Fraction holders may propose and vote on using those rights using the Action Module.