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

# Governance

$RE empowers stakers to take an active role in governing the policy layer of the Re Protocol. protocol upgrades, technical permissions, committee formation, transparency and reporting standards, staking parameters, incentive policy, and governance procedure. It does not run underwriting, claims, pricing, or regulated insurance operations.\
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At launch, $RE governance covers Phase 1: Foundational Governance, which includes:<br>

* Smart contract upgrades and technical permissions
* Staking and bonding mechanics
* Committee formation (including the Market Admissions Committee, Risk Standards Committee, Treasury and Investment Committee, Audit and Transparency Committee, and Technical Governance Committee)
* Transparency and reporting standards<br>

$RE holders who wish to participate in governance must stake their tokens. Stakers may vote on and submit governance proposals, serve as delegates, join protocol committees, perform attestation functions, and stand for additional protocol roles as they are introduced in later phases. Staking is subject to lockups, cooldowns, and unbonding periods, with slashing conditions applied for defined misconduct. A governance security budget, funded through market contributions, supports active protocol governance.

Staking rewards are designed as rewards for participation in governance and other pro-protocol activities, and not as passive yield or guaranteed returns.\
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Participation is subject to KYC/KYB, jurisdiction, allocation rules, and applicable terms.\
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For more information, please visit [https://govern.re.xyz](https://govern.re.xyz/).

### FAQ

<details>

<summary>What is $RE?</summary>

$RE is the governance token of the Re protocol. It governs market-level rules: protocol upgrades, reserve frameworks, incentive budgets, participant standards, committee mandates, staking, delegation, and common resilience capital.

</details>

<details>

<summary>Why does $RE need to exist?</summary>

Re already has meaningful rules to govern. As the protocol grows, governance needs to answer who can participate, what standards apply, how incentives are allocated, how upgrades are approved, who can represent stakers, which committees control which mandates, and how common resilience capital should work during stress.

</details>

<details>

<summary>What does $RE govern?</summary>

$RE governs protocol upgrades, reserve and incentive frameworks, market access standards, staking, delegation, committees, and common resilience capital for defined stress scenarios. It governs the rules of the market, not every operating decision inside the market.

</details>

<details>

<summary>What does $RE not govern?</summary>

$RE does not govern day-to-day underwriting, individual treaty pricing, claims decisions, reserve views on specific accounts, trade-by-trade treasury execution, or routine operations inside regulated entities. Governance approval never overrides law, regulation, contracts, fiduciary duties, or the authority of licensed entities.

</details>

<details>

<summary>What is staking?</summary>

Staking is how $RE holders participate in governance. Verified stakers vote, delegate, submit proposals, serve in governance roles, join committees, perform attestation or review work, and qualify for participation-based rewards.

</details>

<details>

<summary>Are there staking rewards?</summary>

Yes, rewards are protocol-defined and should not be understood as guaranteed yield, passive income, or a share of business profits.

</details>

<br>

***

<sub>*For educational and informational purposes only. Nothing on this Site is investment, financial, legal, or tax advice, or an offer, solicitation, or recommendation to buy, sell, or hold any digital asset, including reUSD and reUSDe. Yields are not guaranteed and all figures are illustrative, not a promise of return; past performance is not a reliable indicator of future results. Digital assets involve significant risk, including total loss of principal — the Tokens are not bank deposits and are not insured by any government agency. The Tokens are available only to eligible non-U.S. persons in permitted jurisdictions and are subject to KYC/AML requirements. The binding terms of the applicable agreements govern and prevail over this summary. See our full*</sub> [<sub>*Disclosures*</sub>](https://re.xyz/disclosure) <sub>*for important additional information.*</sub>