# Governance

Paravel is governed by a decentralized DAO controlled by **PVL token holders**.

Governance defines protocol parameters, system constraints, and long-term direction of the platform.

It does not interfere with real-time execution of strategies.

***

## Governance Token

**PVL is the governance token of the Paravel protocol.**

It is used exclusively for voting on protocol-level decisions.

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## Voting Power

* 1 PVL = 1 vote
* Voting power is proportional to token holdings
* Governance is executed through on-chain proposals

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## Proposal Requirements

For a proposal to pass, it must meet:

* **Minimum quorum threshold**
* **Supermajority approval requirement**

These thresholds ensure that changes reflect broad network consensus rather than small-holder influence.

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## Scope of Governance

PVL holders govern protocol-level parameters, including:

* Vault configuration settings
* Risk parameter adjustments (within predefined system constraints)
* Approval of new agent types and strategy frameworks
* Fee structure updates
* Treasury allocation and spending decisions

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## What Governance Does NOT Control

To preserve system stability and execution integrity, governance does not directly:

* Interfere with real-time agent execution
* Override individual strategy decisions
* Modify live positions or active trades
* Bypass protocol-level risk constraints

Execution remains autonomous and constraint-based.

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## System Separation of Powers

Paravel is designed with a clear separation between:

* **Governance (PVL holders)** → defines system rules
* **Execution layer (agents + vaults)** → operates within those rules
* **Vault accounting (iPrVL)** → represents user exposure

This ensures that:

* Governance cannot disrupt live execution
* Agents cannot operate outside predefined constraints
* User capital remains governed by transparent rules

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## Treasury Control

The DAO controls the **Paravel treasury**, including:

* Protocol revenue allocation
* Risk reserves
* Ecosystem development funding
* Incentive programs
* Community-approved capital programs

All treasury actions require governance approval.

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## Key Principle

Governance defines the rules of the system.

It does not operate the system.

> PVL holders govern the framework under which autonomous execution occurs, without intervening in live strategy execution.


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