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

# Governance

Garuda DeFi is governed by the community through a decentralized governance system powered by $**GDEX**. 

By staking $GDEX, users become active participants in the ecosystem, not just passive holders.

Stakers enjoy [**DEX revenue shares**](/products/earning/gdex-shares.md#how-to-earn-trading-fee-shares-from-gdex) while gaining the right to **propose, vote, and decide** on key initiatives that drive the growth and performance of Garuda DeFi. 

From protocol upgrades and liquidity strategies to treasury management and ecosystem expansion, every major decision is shaped by the community.

<figure><img src="/files/kB0cEjCksoAqn1Ve1fFq" alt=""><figcaption></figcaption></figure>

## How GDEX Governance Works?

1. Go to <https://garuda-defi.org/governance>
2. To participate in governance, users must become members by [staking $GDEX](https://garuda-defi.org/cross-staking/terra1dttut659lxn35m7elu794rglzjzmph3a7v8cs6866qn0csa05u7sk0jg3s/assets) on the Garuda DeFi cross-staking platform.
3. Vote on proposals that are currently live for voting.
4. Each member’s voting power is determined by the percentage of **$GDEX** they have staked.
5. After the voting period ends, the proposal result can be finalized and moved to the next stage (except for vetoed proposals).
6. If the majority votes **Yes**, the proposal is approved and finalized into **time-lock mode**.&#x20;
7. During the time-lock period, the Guardian (Garuda Development Team) will conduct a security review of the code for every approved proposal, especially those involving migrations or execution messages.
8. After the time-lock period ends, the approved proposal can be executed by any members.

## How to create a proposal on Garuda DeFi?

1. Any member who stakes **GDEX** is eligible to create a proposal.
2. To submit a proposal, the user must deposit **1,000 $GRDX** tokens.&#x20;
3. Please note that if a proposal is **vetoed**, the deposit will be **burned**
4. If the proposal is **rejected or approved**, the deposit will be **returned** to the proposal creator after it finalized before time-lock mode.