> 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/essentials/the-forge.md).

# The Forge

The Forge is the [Governance](/y-foundry/community/governance.md) part of the project. What this means is that users can take their $YFD tokens and deposit them in the **Forge**, thus acquiring **fYFD** points. 

<figure><img src="/files/34UTUKYZoTcnq397TdVJ" alt=""><figcaption></figcaption></figure>

The way **fYFD points** work is explained below:

1. A user has **$YFD** tokens.
2. The tokens get deposited in the Forge, via **Smart Contract call**, with a target block number (as the date/time). That block marks the time the final fractional $YFD gets reclaimed. They get issued **fYFD** points.
3. **fYFD** points can be used to:
   * Submit governance [Proposals](/y-foundry/community/governance/proposals.md);
   * Fund any proposal (eg. 1 point = $0.01 of funding capacity).
4. Points decay each block.
5. The user can reclaim the decayed **fYFD** as **$YFD.**

{% hint style="warning" %}
Submitting a proposal locks **fYFD points**. These points stop decaying until the proposal process has been completed. This allows community to penalize bad actors (points can be seized).
{% endhint %}

Users with enough **fYFD** points can create the following [Proposals](/y-foundry/community/governance/proposals.md):&#x20;

* [**Text proposals** ](/y-foundry/info/references/proposal-categories/basic.md)(a proposal with no enforceable on-chain action).
* [**Spend proposals**](/y-foundry/community/governance/proposals/funding.md) to send funds from the treasury to a pre-whitelisted recipient address (service provider, community contributor, consultant, etc.).
* [**Parameter proposals**](/y-foundry/info/references/proposal-categories/parameter.md) to create, modify, or deprecate a governance parameter.
* [**Emergency proposals**](/y-foundry/info/references/proposal-categories/emergency.md) to stop/veto an existing vault, governance, or spend proposal etc.
* [**Vault proposals**](/y-foundry/info/references/proposal-categories/vault.md) to create a new vault, essentially a community-funded work order that can be fulfilled by a developer to receive escrowed funds.
* [**Vault deployment proposal**](/y-foundry/info/references/proposal-categories/vault.md) to deploy the code for a completed vault (making the forge the owner of that contract).
* [**Whitelist proposals**](/y-foundry/info/references/proposal-categories/whitelist.md) to whitelist developers and their wallet addresses to be able to work on vault proposals and receive payment.

You can read more about the governance process by heading over to [Governance](/y-foundry/community/governance.md)**.**

You can read detailed specific of each proposal by heading over to [Proposal Categories](/y-foundry/info/references/proposal-categories.md).