Cross-Chain Governance

Overview

The Summer Protocol employs a cross-chain governance system, with the BASE network serving as the central authority. This model ensures a unified governance framework across multiple chains while maintaining security and simplicity. The governance structure is divided into two components: the Hub Chain (BASE) and Satellite Chains.

Hub Chain: BASE

BASE acts as the central hub for all governance-related activities within the protocol. It serves as the source of truth and ultimate authority for decision-making. Key responsibilities of BASE include:

• TimelockController: Governance actions are subject to a timelock, adding a layer of security and predictability to the process.

• Token Supply and Distribution: BASE manages the minting and allocation of $SUMR tokens across chains.

• Proposal Creation and Voting: All governance proposals are created and voted on exclusively through BASE, consolidating decision-making in a single location.

Satellite Chains

Satellite Chains operate as execute-only nodes within the governance system. Unlike BASE, these chains do not support proposal creation or voting. Their primary role is to execute governance decisions made on the hub chain. Characteristics of Satellite Chains include:

• Token Supply: They begin with zero $SUMR tokens, ensuring no governance capabilities at inception.

• Token Minting: Tokens are minted on Satellite Chains only via a secure “teleportation” mechanism from BASE.

• Governance Limitation: No direct proposal creation or voting is possible, reinforcing BASE’s role as the central authority.

Cross-Chain Communication

To enable seamless governance across chains, the Summer Protocol relies on LayerZero for secure and efficient cross-chain messaging. This infrastructure ensures that messages and commands sent between BASE and Satellite Chains are reliable and tamper-proof.

Governance Workflow

The flow of a governance proposal within the Summer Protocol is outlined below:

Process Explanation

1. Proposal Creation: A governance proposal is initiated on the Hub (BASE).

2. Voting Delay: A specified delay period passes before voting begins, allowing participants to review the proposal.

3. Voting Begins: $SUMR holders vote on the proposal within the designated period.

4. Voting Period Expires: After the voting period ends, the results are evaluated to determine if the proposal passed.

5. Proposal Queued: Approved proposals are queued in the Timelock Controller for a predefined period.

6. Execution on Hub: The proposal is executed on BASE, finalizing the decision at the hub level.

7. Message Transmission: LayerZero securely transmits the execution message to the relevant Satellite Chain(s).

8. Reception by Satellite: The SummerGovernor on the Satellite Chain receives the message and processes the decision.

9. Execution on Satellite: The Satellite Chain executes the proposal, completing the cross-chain governance cycle.