## Sovryn Details ‘Bitocracy 3.0’: The Next Evolution in On-Chain Governance
Community Call #65 focused on the future of Sovryn’s governance, providing a detailed overview of the planned upgrade to **Bitocracy 3.0**. This next phase represents a major step in the protocol’s journey towards full decentralization, empowering SOV stakers with direct control over the platform’s core functions.
### The Journey of Decentralization
The team contextualized Bitocracy 3.0 as a key milestone in a multi-stage process:
* **Bitocracy 1.0:** The initial phase where the Exchequer multisig controlled the protocol to ensure stability and rapid iteration during the early days.
* **Bitocracy 2.0:** The current system, which introduced SOV staking and on-chain voting for proposals (SIPs), allowing the community to guide treasury spending and parameter changes.
* **Bitocracy 3.0:** The upcoming upgrade, which will transfer direct ownership and administrative control of many of the core smart contracts from the Exchequer to the Bitocracy itself.
### What Does Bitocracy 3.0 Change?
The primary change is that actions which currently require execution by the Exchequer multisig after a successful vote will instead be executed **autonomously** by the governance contract. Once a SIP passes, the code changes or parameter updates will be applied directly on-chain without any intermediary. This removes a significant point of centralization and trust.
Key contracts to be transferred include:
* The protocol settings contract.
* Contracts governing lending pool parameters.
* The fee-sharing contract.
### Safeguards and the Guardian Role
While this transfer of power is a major step, safeguards will remain in place. The **Guardian** multisig will retain its ability to veto malicious proposals, acting as a critical failsafe for the protocol. However, its powers are limited to prevention, not action, ensuring the ultimate authority rests with the token holders. The team is also proposing to split the Guardian into two distinct entities with separate members—one for contract pausing and one for proposal vetoes—to further distribute power and prevent conflicts of interest.
Bitocracy 3.0 is the culmination of years of planning and development, moving Sovryn closer to its end state as a truly unstoppable, community-governed financial system on Bitcoin.