keefertaylor/Kolibri Gov Draft Secret

## Kolibri Gov Draft
Kolibri is an upgradeable protocol which can tweak it’s behavior with new smart contracts. Kolibri is built as a minimal viable product which will function on its own. Over time, we suspect the protocol will refine itself, add features, and rearchitect governance. While the next bit of this post is a bit technical, it is important that users of the protocol understand and consent to the governance mechanism.

Users of the protocol should be aware of two governance functions, the governor and the pause guardian. At current time, both of these entities are implemented with a timelock multisig contract.

The pause guardian may pause the system (deposits, withdrawals, mints, burns, liquidations). This is a safety mechanism meant to be an emergency stop in case of a 0 day bug, an oracle exploit, or other external event that could put users funds at risk.During a pause, token transfers may still proceed and interest on borrowed kUSD is still accrued. Only the governor can unpause the system. The pause guardian is a 1 of 3 multisig contract, with a 0 second time delay.

The governor can control both economic parameters and contract upgrades. It may also unpause the system after an emergency stop is activated. The governance contract is controlled by a 2 of 3 multisig timelock, with a X hour delay.

In both cases, the timelock keys are held by the owners of Hover Labs:
Keefer Taylor / edpkXXX
Luke Youngblood/ edpkXXX
Ryan Sears / edpkXXX

While we realize that the current model presents a trustful model, we aim to achieve progressive decentralization over time, akin to the models pursued by many popular DeFi projects on Ethereum (ex. XXX). Over time we intend to relinquish control of these contracts as the economic parameters and safety is proven, and we intend to seal the door behind us so that no entity can ever control Kolibri. Eventually, we will migrate to a model controlled by the community.

In the short term, we intend to gradually increase the timelock to a period of 3 days and identify community members who may also hold the multisig to increase decentralization outside of the Hover Labs team. Additionally, we do not plan to upgrade contract behavior prior to identifying a proper model to achieve broad consensus on upgrades outside of the Hover Labs teams or before there are community members holding signing keys for the multisig. We reserve the right to change our thinking on this based on real world outcomes but this is a snapshot of our beliefs at current time that we strongly hold.

With all that said, for the time being, use of Kolibri implies a level of trust that two holders of the multisig will not collude in a malicious manner. Luke Youngblood has been in the Tezos ecosystem since before mainnet, is well known in the Tezos Ecosystem and manages the Tezos Bakers ($XX million dollars in AUM). Keefer Taylor runs a public baker and has been building on Tezos since 2018, and has contributed a number of projects to the ecosystem (TezosKit, Harbinger, TezosKMS). Ryan Sears has been an integral part of the Kolibri team, and though new to the Tezos ecosystem, Luke and Keefer vouch for his morals, ethics and maintain a high degree of personal and professional trust in Ryan.
	Kolibri is an upgradeable protocol which can tweak it’s behavior with new smart contracts. Kolibri is built as a minimal viable product which will function on its own. Over time, we suspect the protocol will refine itself, add features, and rearchitect governance. While the next bit of this post is a bit technical, it is important that users of the protocol understand and consent to the governance mechanism.

	Users of the protocol should be aware of two governance functions, the governor and the pause guardian. At current time, both of these entities are implemented with a timelock multisig contract.

	The pause guardian may pause the system (deposits, withdrawals, mints, burns, liquidations). This is a safety mechanism meant to be an emergency stop in case of a 0 day bug, an oracle exploit, or other external event that could put users funds at risk.During a pause, token transfers may still proceed and interest on borrowed kUSD is still accrued. Only the governor can unpause the system. The pause guardian is a 1 of 3 multisig contract, with a 0 second time delay.

	The governor can control both economic parameters and contract upgrades. It may also unpause the system after an emergency stop is activated. The governance contract is controlled by a 2 of 3 multisig timelock, with a X hour delay.

	In both cases, the timelock keys are held by the owners of Hover Labs:
	Keefer Taylor / edpkXXX
	Luke Youngblood/ edpkXXX
	Ryan Sears / edpkXXX

	While we realize that the current model presents a trustful model, we aim to achieve progressive decentralization over time, akin to the models pursued by many popular DeFi projects on Ethereum (ex. XXX). Over time we intend to relinquish control of these contracts as the economic parameters and safety is proven, and we intend to seal the door behind us so that no entity can ever control Kolibri. Eventually, we will migrate to a model controlled by the community.

	In the short term, we intend to gradually increase the timelock to a period of 3 days and identify community members who may also hold the multisig to increase decentralization outside of the Hover Labs team. Additionally, we do not plan to upgrade contract behavior prior to identifying a proper model to achieve broad consensus on upgrades outside of the Hover Labs teams or before there are community members holding signing keys for the multisig. We reserve the right to change our thinking on this based on real world outcomes but this is a snapshot of our beliefs at current time that we strongly hold.

	With all that said, for the time being, use of Kolibri implies a level of trust that two holders of the multisig will not collude in a malicious manner. Luke Youngblood has been in the Tezos ecosystem since before mainnet, is well known in the Tezos Ecosystem and manages the Tezos Bakers ($XX million dollars in AUM). Keefer Taylor runs a public baker and has been building on Tezos since 2018, and has contributed a number of projects to the ecosystem (TezosKit, Harbinger, TezosKMS). Ryan Sears has been an integral part of the Kolibri team, and though new to the Tezos ecosystem, Luke and Keefer vouch for his morals, ethics and maintain a high degree of personal and professional trust in Ryan.