As BENQI matures, the protocol will undergo progressive decentralization and eventually be governed by a DAO consisting of QI token holders and governance structures both on-chain & off-chain. The founding team will bootstrap the initial release of BENQI.
The QI token will be required to firstly bring forth, then vote on, proposals (BENQI Improvement Proposals) that would affect key parameters such as economics, security and development of the protocol.
Examples of parameters that could be voted on:
Interest Rate Model
The addition of assets that meet the risk requirements of the protocol
Risk parameters for overcollateralization and liquidation
Changes to the Liquidity Mining Program to adjust incentives depending on market conditions
Improvements to the protocol such as changes to smart contracts and governance processes