# 🏛WOW Governance Model

## Instant Governance

Governance is a mechanism, through which holders of WOW-token can change important protocol’s parameters, as well as submit and accept WOW improvement proposals. Everyone, who participates in the Governance, receives Governance rewards, which calculated as a percentage of the protocol’s total revenue.

Users can vote on critical protocol parameters that define the protocol’s security and profitability. These parameters can be changed on-chain without any human intervention. The procedure is fully automated, and parameters are updated every 24 hours. A new value of a parameter is determined as a weighted average of values supported by each vote: for example, if value “7” received 5 votes, and value “4” received 10 votes, the new parameter’s value will be “5” because 7 *(5/15) + 4* (10 / 15) = 5. The following table contains parameters that define the protocol’s financial model.

![WOW Financial Model Governance Parameters](/files/-MYiG10zmyZOx8uLJ3VC)

The Economic Model of the protocol defines how WOWswap generates and distributes revenue. Currently, there are two revenue streams: fees taken from traders’ profits and fees taken from liquidity providers’ profits. Also, there are five cost centers where this revenue can be distributed: governance rewards, the development fund, the insurance fund, donations, and the WOW token buy back and burn program.

![WOW Economic Model Governance Parameters](/files/-MYiGL91VkAXAH9iuYug)

## WOW Improvement Proposals

On the contrary, some protocol’s features cannot be fully automated because their changes require manual work, such as upgrading or deploying new smart contracts. In this case these changes can be submitted as a form of WOW Improvement Proposals or WIPs. 

Any user with a certain minimum number of xWOW tokens can submit a proposal through WOWswap’s website for the community to vote with their xWOW tokens. The on-chain voting will be open for 72 hours and if the majority of votes are cased “for” the proposal, this proposal will be implemented by the WOW development team.

![](/files/-MYiGjzC6yZYlDMYvug0)


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