✍️Principles

The following are the primary principles of Shade Protocol.

Shade Protocol governance is responsible for enforcing and evolving this set of principles over time as necessary. Principles are in the hands of the decentralized community - may these serve as powerful (initial) guidance towards a robust, effective, and useful protocol that will be adopted and used globally.

• Privacy is a human right

• Privacy is the expectation

• All Shade Apps must adhere to at least 1 of the following rules:

  • The app increases the utility for SHD

  • The app grows the ShadeDAO

  • The app increases the utility of SILK

  • The app increases the demand for SILK

• No new unique token per application

  • Unique per application tokens create an end-user experience designed around generating value for the specific application token as opposed to the end user

• Silk is agnostic with integrations

• Stability of Silk is a public good

• Triggers on actions that affect all token holders must be open-sourced

• Avoid non-collateralized inflation

  • The only exception is the initial token distribution

• Income > Expenditures

• ShadeDAO should passively build an account for LP rewards

  • A minimum amount of liquidity should be considered a public good

• Avoid fixed-rate values within Shade Protocol tokenomics whenever possible

  • Fixed-rate values signal a lack of dynamic interaction with core attributes or a lack of measurement of value generation

• Do not overpay for security

• Do not sacrifice the end-user experience in the name of tokenomics

• In order to realize the rewards of being a Shade staker, you must take on some level of risk to help stabilize or grow the underlying protocol