# On-Chain Governance

APChain adopts a **two-tier governance architecture** consisting of **on-chain governance (by APX holders and validators)** and **ecosystem governance (by the APDAO community and APD holders)**.\
This layered model ensures **network security** while maintaining **openness and flexibility** for ecosystem expansion.

### <mark style="color:orange;">On-Chain Governance</mark>

**Governing Participants:** APX stakers and validators

**Scope of Governance:**

* **Consensus parameters:** block time, base gas fees, staking reward parameters
* **Network upgrades:** protocol version changes, virtual machine optimizations, cross-chain protocol integrations
* **Data availability (DA) and sequencer policies:** such as DA provider selection and shared sequencer prioritization
* **Node service standards:** latency (p99 SLA), availability, and audit reporting

### <mark style="color:orange;">**Governance Process**</mark>

Proposal → Discussion → Voting → Timelock → Execution

* **Multisig mechanism:** Network upgrades are secured through a joint multisig of the validator committee and the DAO.
* **Emergency pause:** In the event of black swan incidents or smart contract vulnerabilities, critical modules can be temporarily frozen to prevent systemic risks.


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