GEAR Token & Governance
GEAR is Gearbox's governance token. Token holders vote on risk parameters, fee structures, and protocol integrations. Stakers receive a share of protocol revenue. Voting power decays if not actively used.
Governance Architecture
How GEAR holders control Gearbox's risk and revenue parameters
Voting Power Decay Calculator
Voting power in Gearbox decays based on how recently tokens were delegated for voting. Adjust the parameters to see how your voting weight changes over time.
Raw Voting Power
50,000
Decay Factor
0.70
Delegation Bonus
+0%
Effective Voting Power
35,000
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Fee Distribution to Stakers
GEAR stakers receive a portion of all protocol fees. The treasury accumulates the rest and is allocated via GIP votes.
Protocol Revenue (30d)
$243,000
Staker Share (20%)
$48,600
Your Share (proportional)
$0.97
Estimated Annual Yield from Fees
~$23.28
~0.047% APY
Proposal Lifecycle
Draft
Off-chain discussion in Discord/Forum. No on-chain footprint. Community debates merit and scope.
~1-2 weeks
->
Temperature Check
On-chain signaling poll. Requires 100 GEAR to post. Simple For/Against vote.
~3 days
->
Governance Proposal
Formal on-chain vote. Requires 500k GEAR to submit. 3-day voting window.
~3 days
->
Timelock
48-hour delay before execution. This is Gearbox's security buffer to prevent malicious proposals.
2 days
->
Execution
Proposal parameters are updated on-chain. Any user can trigger execution after timelock expires.
Immediate
What You Can Vote On
Collateral Factors
Maximum loan-to-value ratios for each asset. Higher = more borrowing power but more risk. Example: ETH might be 80%, MATIC 65%, long-tail assets 50%.
Liquidation Thresholds
At what health factor a position becomes liquidatable. Ranges from 1.0 (immediate) to 1.5 (safer positions). Lower thresholds allow higher leverage.
Interest Rate Curves
How borrow rates scale with utilization. High utilization -> higher rates to attract more lenders. Curve shape (linear/exponential) affects profitability.
New Protocol Adapters
Approving new protocol integrations (e.g., adding staked ETH as a new collateral type). Each adapter has risk parameters voted separately.
Fee Adjustments
Changing opening/closing fees and interest rate spreads. Higher fees -> more treasury revenue but more expensive for users.
Treasury Allocation
How accumulated fees are used - development grants, LP incentives, buyback, or direct staker distributions.
Recent Governance Proposals
Passed
GIP-42: Increase ETH Collateral Factor to 82%
-> ETH CF: 75%->82%
Passed
GIP-38: Add Uniswap V3 Adapter with 3 Max Leverage
-> Adapter live
Passed
GIP-35: Reduce Opening Fee from 0.15% to 0.10%
-> Fee: 0.15%->0.10%
Failed
GIP-31: Increase max leverage to 15 on stablecoin pools
-> Rejected