Governance

Monochrome adopts a staged governance model, following the pattern that has worked for other exchange-native tokens. Governance moves from an early Foundation-led phase to a progressively community-led phase as the DAO infrastructure is proven.

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Early phase: Monochrome Foundation

From token launch through the establishment of the DAO framework, the Monochrome Foundation oversees:

• Ecosystem grants and deployment of the Ecosystem Incentives allocation
• Coordination with Monochrome Exchange on listing and Launchpad policy
• Development of the governance framework and DAO smart-contract suite
• Publication of custody and treasury policy
• Publication of the burn ledger and attestation reports

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Autonomous phase: Monochrome DAO

Once the DAO smart-contract suite is deployed and audited, MCR holders acquire on-chain governance rights:

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Reserved matters

The following remain with Monochrome Exchange management and are not subject to DAO governance:

• Regulatory compliance decisions
• Licensed-entity operational decisions
• Custody arrangements and security-critical operations
• Matters affecting the licensed status of Monochrome Exchange
• Anti-money-laundering, sanctions, and law-enforcement matters

This ensures community governance never conflicts with the regulatory obligations of the exchange.