> For the complete documentation index, see [llms.txt](https://elanu-sheetmaster.gitbook.io/y-foundry/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance.md).

# Governance

Governance allows users to vote on the direction of a blockchain project. This is in line with decentralization, as it grants the decision-making power to the community of users rather than a central team.

YFD is designed to be adaptable to its users needs through governance.This allows the community to implement changes related to UI, fees and reward distribution, and even modify the underlying code of the project.

While decentralized onchain governance is still relatively new, YFD believes it holds the key to true decentralization with its unique design. This is further open sourced to enable wider and quicker adoption for the good of the ecoystem.

<figure><img src="/files/KjmEx3lo0tPBaRPpeboH" alt=""><figcaption></figcaption></figure>

**The Power of the Community is sustained through consensus in debate and commitment to action.**&#x20;

### Stages <a href="#voting" id="voting"></a>

Governance in YFD can be divided into three main stages:

### Proposing

Proposals take form in [The Forge](/y-foundry/essentials/the-forge.md). A proposal has three main types and an associated fYFD points requirement. Their scope can range from simple suggestions, to protocol-critical actions such as proposing or cancelling a vault.. For in-depth explanation of all proposals available, please check [Proposal Categories](/y-foundry/info/references/proposal-categories.md).

### Voting

Voting is the act of expressing your opinion on the proposed subject. $YFD lockers receive votes for every proposal, based on the amount of fYFD points they possess. For more information on getting fYFD, please take a look at (link to the Forge). Certain mechanisms are used to motivate users to stay active and involved.

### Execution

Once voting has completed on a proposal, most of them will execute an on-chain action based on results of the poll. These actions can be:

* approve a change of governance parameter
* approve a fully funded vault proposal, enabling development to begin
* cancel an existing proposal that is pending execution
* cancel a vault proposal and return remaining funds to users who contributed
* punish a proposer for malicious actions by confiscating collateral


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