Detailed description of governance with respective to the SILK peg.

The SILK peg is governed by Shade Protocol general governance, as well as the SILK Assembly - a research team and elected multisig that is capable of triggering SILK peg migrations as well as SILK composition changes. Generally speaking, SILK is not intended to be a speculative tool. It is intended to be an index focused on stability in relation to other currencies versus being an intentional inflation hedge (although their are components of SILK that are an inflation hedge).

As such, the SILK Assembly and general Shade Protocol governance must carefully manage expectations and composition changes to be done in as conservative of a manner as possible. These changes should be scheduled on plan on some sort of annual basis, with plenty of transparency about proposed changes. Any sort of change that is not given a multi-month heads up should be vetoed unless there are drastic required changes to a rapid and permanent change in the global economy that should impact SILK's long term thesis and composition.

Last updated