Governance

Introduction

Traditional finance operates through centralized authority; blockchain governance often operates without regulatory oversight. Banc unites these two worlds.

Banc Governance is a hybrid decentralized structure — a blend of DAO transparency and regulator accountability. It ensures that every network upgrade, compliance update, or treasury allocation is executed lawfully, securely, and verifiably.

Governance in Banc is not a political process — it’s a policy execution framework designed for financial-grade trust.

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Governance Architecture

Banc’s governance model has four interacting layers of authority:

┌──────────────────────────────────┐
│  L1. Regulator Board             │ ← Compliance & Legal Oversight
├──────────────────────────────────┤
│  L2. DAO Council                 │ ← Strategy, Treasury, Protocol Policy
├──────────────────────────────────┤
│  L3. Node Assembly               │ ← Technical & Operational Voting
├──────────────────────────────────┤
│  L4. Community Forum             │ ← Public Proposal, Discussion, Signal Voting
└──────────────────────────────────┘

Each layer has a defined scope, ensuring decentralization without compromising institutional legitimacy.

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The Governance Layers Explained

1. Regulator Board

• Composed of verified Regulator Nodes from multiple jurisdictions.

• Approves or vetoes updates to compliance modules.

• Co-signs DAO votes for compliance-critical proposals.

• Issues formal attestations for external regulators.

2. DAO Council

• Core strategic body of Banc.

• Responsible for:

  • Treasury and grants allocation.

  • Protocol upgrades.

  • Ecosystem partnerships.

  • Coordination with Regulator Board.

Council members are elected every 12 months by $BANC holders.

3. Node Assembly

• Includes validator, auditor, and compliance nodes.

• Executes governance-approved upgrades.

• Proposes network-level improvements (BIPs — Banc Improvement Proposals).

• Reports on node performance and uptime.

4. Community Forum

• Open to all $BANC holders.

• Serves as an idea incubation layer.

• Uses signal voting to prioritize proposals for Council review.

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Dual-Signature Governance Model

Banc employs a dual-signature model for all on-chain governance executions.

Signature Layer	Signer	Responsibility
DAO Signature	Community & Council	Validates network and economic decisions.
Regulator Signature	Regulator Board	Confirms legal and compliance integrity.

Both signatures are required before any action takes effect.

Governance Execution Flow

Proposal Submission
      ↓
Community Discussion & Signal Voting
      ↓
DAO Council Vote
      ↓
Regulator Board Co-Signature
      ↓
48h Time Lock
      ↓
Execution on Mainnet

This structure guarantees that community autonomy and regulatory oversight coexist in balance.

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Proposal Lifecycle

All governance decisions in Banc follow a transparent, five-stage lifecycle:

Stage	Description
1. Submission	Any verified member or institution submits a BIP (Banc Improvement Proposal).
2. Review	DAO Council + Regulator Board evaluate technical and compliance implications.
3. Voting	Community and node participants vote using quadratic weight (anti-whale system).
4. Co-Signature	Regulator Board validates compliance-critical elements.
5. Execution	Smart contracts implement approved changes after a time lock.

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Voting System

Voting Methods

Type	Purpose	Voting Power Source
Direct Vote	Simple yes/no on protocol changes.	1 token = 1 vote.
Quadratic Vote	Community-focused funding proposals.	Weighted by √tokens.
Delegated Vote	Allows proxy voting to DAO representatives.	Assigned voting power.
Compliance Vote	Regulator Board-only voting.	Jurisdictional signature authority.

Voting occurs on-chain using Banc’s Governance Smart Contracts, which record:

• Vote weight

• Timestamp

• Jurisdiction signature (if required)

• Execution hash

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Treasury Governance

The Banc Treasury funds ecosystem growth, development, and regulatory integration.

Sources of Treasury Funds

• Transaction and proof verification fees.

• Compliance Pool contributions.

• Slashing penalties from malicious nodes.

• Token emissions for network incentives.

• Investment returns from DAO-managed funds.