Governance and Resolution

Optimistic Resolution

• First top 50% staker to submit a proposal becomes official; proposal enters a challenge window (6 hours default).

• If unchallenged, the proposal auto-accepts and the proposer receives the fixed consensus bonus.

• Top 50% stakers may challenge, triggering a vote.

This prioritizes speed and efficiency so many outcomes can resolve without requiring a full vote.

Challenge & Initial Voting (Top 50%)

• Top 50% stakers vote between the original proposal and the challenger.

• Voting window: 24 hours.

• Quorum: at least 10% of eligible stake.

• Majority: greater than 66.7% of votes cast.

• Failure to reach consensus triggers escalation.

Escalated Resolution (All Stakers)

• Triggered when thresholds or quorum are not met, or when the result remains contentious.

• All stakers vote with snapshot-based weighting.

• Quorum: 10% of all staked value.

• Majority: greater than 66.7% of votes cast.

• Penalty and reward logic applies network-wide.

Market Finalization & Settlement

Once finalized:

Step 1: Outcome verification

• Record the winning outcome onchain with timestamp and evidence.

Step 2: Payout reporting

• AxiomCTFMarket reports the payout vector to Conditional Tokens.

Step 3: Governance fee, penalty, and reward processing

• governance penalties and proposer bonuses are applied through the Axiom Prime side of the system

• staker-directed fee recipients continue to receive their configured protocol flows

Step 4: Redemption

• users redeem winning positions for collateral

• CLOB markets do not charge an additional payout fee at redemption time because protocol trade fees are collected during AxiomCTFExchange settlement

Step 5: State archival

• market data remains available onchain for history and analytics