# Governance

Garuda DeFi is governed by the community through a decentralized governance system powered by $**GDEX**.&#x20;

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.&#x20;

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.


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