# Governance

Governance is fundamental to Atlo Protocol. In line with a decentralised Terra platform, it forms the backbone of all decision making at key points in the launch process.

Deposits are required to protect against spam and are returned for proposals that pass or fail except when a proposal is vetoed. Deposits of $ATLO tokens in vetoed proposals will be deposited into the Atlo Community Warchest. ## Voting Period If the minimum deposit is reached before the end of the deposit period, deposits are then returned and the proposal proceeds to voting for a period defined by the governance parameter VotingPeriod. Stakers of$ATLO Tokens can cast votes for the proposal with 4 voting options available:

• Yes - in favour
• No - not in favour
• NoWithVeto - veto
• Abstain - does not influence vote

1 staked $ATLO Token = 1 vote. 1 vesting$ATLO Token as at MaxDepositPeriod from today = 1 vote.

## Tallying

For a proposal to pass, the following conditions must be met:

1. Voter participation must be at least Quorum Q: $$\frac {Yes + No + NoWithVeto}{Stake} \ge Q$$
2. The ratio of NoWithVeto votes must be less than Veto V: $$\frac {NoWithVeto}{Yes + No + NoWithVeto} < V$$
3. The ratio of Yes votes must be greater than Threshold T: $$\frac {Yes}{Yes + No + NoWithVeto} > T$$

If any of these conditions are not met, the proposal is rejected. These governance conditions/parameters can be changed by submitting a “Modify Governance Parameters” proposal to evolve and adapt these conditions over time.

## Proposal Implementation

When a governance proposal is accepted, the changes described are automatically put into effect by the proposal handler.

## Proposal Types

Type Description
Token Launch Proposal to launch a token on the the Atlo Protocol including all required details
Create Protocol Feature Proposal to add new features to the Atlo Protocol
Modify Protocol Feature Proposal to modify existing features on the Atlo Protocol
Modify Governance Parameters Proposal of modifications to the Atlo Governance parameters
Community Warchest Grants Proposal for Atlo Protocol Community funded work

## The Token Launch Proposal

### Voting on the Token Launch Proposal

Once submitted, $ATLO token stakers can vote on the Token Launch Proposal until the voting period ends. The voting process is designed to facilitate community due diligence on the proposal by the Atlo community. Those that vote on the proposal will require the following: • Staked or vesting$ATLO tokens allowing them to vote on a Token Launch Proposal
• \$ATLO tokens staked on the Proposal itself that will be locked into the proposal for the duration of the proposal lifecycle

### Proposal Outcome and Fee Structure

The outcome of the vote will determine the parameters of how the funds raised will be released back to the proposers and how launch fees are charged:

• Premium - The proposal votes in favour exceed the premium rating parameter PremiumLaunchRating. The Atlo Protocol launch fee will be charged at the most favourable PremiumChargeFee rates and UST raised will be released according to the PremiumReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$\frac {Yes}{TotalVotes} \ge PremiumLaunchRating$$
• Good - The proposal votes in favour exceed the Good rating parameter GoodLaunchRating. The Atlo Protocol launch fee will be charged at the GoodChargeFee rates and UST raised will be released according to the GoodReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$GoodLaunchRating \le \frac{Yes}{TotalVotes} \lt PremiumLaunchRating$$
• Standard - The proposal votes in favour exceed the Standard rating parameter StandardLaunchRating. The Atlo Protocol launch fee will be charged at StandardChargeFee rates and UST raised will be released according to the StandardReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$StandardLaunchRating \le \frac{Yes}{TotalVotes} \lt GoodLaunchRating$$
• Rejected - The vote does not pass the tallying process and no further actions are taken on the proposal.