> ## Documentation Index
> Fetch the complete documentation index at: https://docs.safefoundation.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Governance

> How SafeDAO governs Safenet's Charter, Oracle, participant sets, and protocol parameters.

SafeDAO governs Safenet.

SafeDAO governs Safenet's Charter, Oracle, participant sets, and configurable protocol parameters.

Safenet separates Oracle configuration changes from larger changes to the Charter or Oracle. This allows configurable parameters to change without replacing the underlying protocol logic.

## How Safenet governance works

Different parts of Safenet use different governance paths depending on what is being changed:

```mermaid theme={null}
flowchart TD
    A["SafeDAO"] --> B["Oracle configuration"]
    A --> C["Charter governance"]
    A --> D["Oracle upgrades"]
    A --> E["Participant sets"]

    B --> F["Sentinel set"]
    B --> G["Fees and DAO share"]
    B --> H["Bond and protocol-funds parameters"]

    C --> I["charter.safenet-gov.eth"]
    D --> J["oracle.safenet-gov.eth"]
    E --> K["Sentinels and Validators"]
```

*Governance paths for Oracle configuration, Charter changes, Oracle upgrades, and participant sets.*

Oracle configuration changes are governed through the SafeDAO governance account on Gnosis Chain.

Approved changes execute through Snapshot, Reality.eth, and SafeSnap. The SafeDAO governance account has no usable signer execution path.

Changes to the canonical Charter or complete Oracle contract use SafeDAO-controlled ENS records on Ethereum Mainnet.

## Charter and Oracle

The **Safenet Charter** defines the rules Sentinels apply when evaluating transactions.

The canonical Charter version will be referenced through:

`charter.safenet-gov.eth`

For convenience, the Charter is also published in the [safenet-charter repository](https://github.com/safe-research/safenet-charter).

SafeDAO can adopt a new Charter version and update the canonical reference through governance. A Charter change applies according to the effective time or epoch defined for that version.

The **Safenet Oracle** is deployed on Gnosis Chain. It contains the protocol logic and configuration used for Sentinel participation, fees, bonds, arbitration, and related Safenet mechanics.

Only one Oracle is canonical at a time. SafeDAO will control which one through the `oracle.safenet-gov.eth` ENS record on Ethereum Mainnet.

The ENS record identifies the canonical Oracle contract on Gnosis Chain and includes the activation epoch for a new Oracle version.

## Governed parameters

SafeDAO can update configurable Oracle parameters without replacing the complete Oracle contract.

These include:

* **Sentinel set:** Add or remove Sentinels.
* **Transaction-check fee:** Change the USDC fee charged for a Safenet check.
* **SafeDAO fee share:** Change the portion of transaction-fee revenue directed to DAO-controlled protocol funds.
* **Bond slashing:** Change the amount of a Sentinel bond that can be slashed under the applicable rules.
* **Protocol funds receiver:** Change the address receiving DAO fee revenue and slashed bonds.

Approved parameter changes are executed through the SafeDAO governance account on Gnosis Chain.

See [Fees](/safenet-aegis/economics/fees) for the current economic parameters.

## Oracle upgrades

Some Safenet rules are immutable within a deployed Oracle contract.

Changes to these rules require deploying and activating a new Oracle. This includes changes to:

* **Immutable protocol logic.**
* **Fixed Sentinel incentive mechanics.**
* **The Oracle's Governance address.**
* **The Safenet Security Council address.**

The Safenet Security Council resolves arbitration for split Sentinel results. Changing the Safenet Security Council Safe's members or signature threshold does not require an Oracle upgrade. An Oracle upgrade is required only when the Security Council Safe address itself changes.

The canonical Safenet Oracle is deployed on Gnosis Chain.

Only one Oracle is canonical at a time. SafeDAO will control which one through the `oracle.safenet-gov.eth` ENS record on Ethereum Mainnet.

The ENS record identifies the new Oracle contract and its activation epoch.

Validators must adopt the new Oracle configuration for that epoch. Safenet uses a two-week transition period for Validator adoption. At least two-thirds of Validators must adopt the new Oracle version, and Validators that do not update within the transition period lose rewards.

Oracle configuration changes do not require an Oracle replacement.

## Participant sets

SafeDAO governs the Sentinel and Validator sets.

The Sentinel set is configured in the Oracle on Gnosis Chain. The Validator set is recorded in the staking contract on Ethereum Mainnet.

The initial participant sets are approved through SafeDAO governance. Later additions and removals follow the applicable governance process.

See [Participant selection](/safenet-aegis/governance/participant-selection) for how Sentinels and Validators are proposed, approved, added, and removed.

<CardGroup cols={2}>
  <Card title="Participant selection" href="/safenet-aegis/governance/participant-selection">
    Review how Sentinels and Validators are selected.
  </Card>

  <Card title="Economics" href="/safenet-aegis/economics/overview">
    Review Safenet's economic and incentive model.
  </Card>

  <Card title="Sentinels" href="/safenet-aegis/operate-safenet/sentinels">
    Review the Sentinel role.
  </Card>

  <Card title="Validators" href="/safenet-aegis/operate-safenet/validators">
    Review the Validator role.
  </Card>
</CardGroup>
