> For the complete documentation index, see [llms.txt](https://docs.axiomprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.axiomprotocol.io/protocol-design/axiom-theorem/governance-and-resolution.md).

# 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


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