# The Forge

The Forge is the [governance](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance "mention") 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="https://268243558-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FzeCUvNp4zqe4NEKS0jlu%2Fuploads%2FaGDivxW2a12tR6WwAbtb%2Fimage.png?alt=media&#x26;token=375616c1-a8b6-4a7a-aaa1-5419dbde43d0" 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](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance/proposals "mention");
   * 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](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance/proposals "mention"):&#x20;

* [**Text proposals** ](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/basic)(a proposal with no enforceable on-chain action).
* [**Spend proposals**](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance/proposals/funding) to send funds from the treasury to a pre-whitelisted recipient address (service provider, community contributor, consultant, etc.).
* [**Parameter proposals**](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/parameter) to create, modify, or deprecate a governance parameter.
* [**Emergency proposals**](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/emergency) to stop/veto an existing vault, governance, or spend proposal etc.
* [**Vault proposals**](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/vault) 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**](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/vault) to deploy the code for a completed vault (making the forge the owner of that contract).
* [**Whitelist proposals**](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories/whitelist) 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](https://elanu-sheetmaster.gitbook.io/y-foundry/community/governance "mention")**.**

You can read detailed specific of each proposal by heading over to [proposal-categories](https://elanu-sheetmaster.gitbook.io/y-foundry/info/references/proposal-categories "mention").


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