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

# Governance & INDY Staking

## **Overview 🌐**

The Indigo DAO Token (“INDY”) is a Cardano native asset that can be owned, held, or transferred by any user. INDY serves as Indigo’s utility token, with one of its key purposes being to allow on-chain voting on DAO proposals (a “proposal”).

The total supply of INDY is capped at 25,000,000 under [Indigo Protocol V3](/readme/indigo-protocol-v3.md) (previously 35M), with a 6 decimal precision. INDY’s monetary policy disallows future minting and burning, therefore making the total supply constant and unchanging. Indigo is undergoing a Fair Launch, therefore there has been no pre-sale nor private distribution to investors prior to launch.

### Empowering Decentralization

Indigo Protocol is deeply rooted in decentralized principles, empowering its community through a governance model that allows INDY token holders to steer the protocol’s development and future.

## **Governance 🏛️**

### DAO and Decision Making

* The Indigo Decentralized Autonomous Organization (DAO) is a collective that makes pivotal decisions about the protocol. From introducing new iAssets and collateral types to adjusting protocol parameters and PSM pools, DAO members utilize their INDY tokens to vote on proposals and guide the protocol’s evolution.

### Proposing Changes

* Community members are encouraged to propose changes and new features. To initiate a proposal or engage in ongoing discussions, members can visit the Governance Forum, ensuring a collaborative and inclusive multi-step decision-making process.

## **INDY Staking**

### Staking and Dual Rewards

* INDY token holders can stake their tokens to participate in the protocol’s Fee Sharing Mechanism. By staking INDY, participants receive INDY rewards and protocol revenue from activities like minting, liquidations, redemptions, and interest collection. In V3, staker revenue is converted from iAsset(s) in the Treasury to INDY via open market orders on a monthly distribution schedule. This aligns incentives between the protocol's growth and its users.

### Governance Participation

* Stakers are not only rewarded but are also encouraged to participate in governance, ensuring that those who have a stake in the protocol have a say in its direction. To continue receiving INDY rewards, a user must participate in at least 1 governance vote every 90 days.

## **Security & Transparency 🛡️**

#### Secure Participation

* Indigo Protocol prioritizes security and transparency, ensuring that governance and staking processes are not only user-friendly but also secure, safeguarding the interests and assets of its community.