# Governance & Validators

Governance logic exists within the staking derivative contract that will allow both SHD and stkd-SCRT tokenholders to be able to vote on Secret Network governance proposals. This is a unique feature that empowers Shade Protocol as an application layer protocol to partake in governance. This particular duel governance feature set is on the roadmap, and has a distinct amount of research and development remaining. Initially, vote will be distributed throughout the validator set for voting.

## Validator Set <a href="#id-181a" id="id-181a"></a>

One of the primary differentiators of stkd-SCRT is how the validator set is chosen. The following are the set of 21 validators selected for quarter one, which will be revisited quarterly.

![](https://miro.medium.com/max/652/1*g1cagAB96cPvpnduiRBaHQ.png)

## Selection Criteria <a href="#id-181a" id="id-181a"></a>

By outlining the requirements to join the validator set. stkd-SCT can create transparency and foster inclusion into the staking derivative set. Exclusion from the list is not permanent, and is updated every quarter based on validators with the highest scores on the below rules. The barrier to entry may require validators to compromise on fees, to participate in governance, or to make their infrastructure more robust.

![](https://miro.medium.com/max/1400/1*HTnDelDMBKFPZwsZ50e0ow.png)

![](/files/N6QntWaNIKy6BQ0s3gzt)

```
// Validator Rank Equation
(0.525 * UptimeScore) + (0.125 * DecentralizationScore) + (0.15 * Governance Activity Score) + (0.10 * Cumulative Commission Score) + (0.10 * Relaying Score)
```


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