Term Finance was built on the principle that fixed-rate DeFi should be transparent, scalable, and decentralized. To make this vision real, protocol governance plays a central role. Here's how it works—and how you can take part through staking.
The Term Protocol is stewarded by two primary entities:
The DAO funds the Foundation and serves as the protocol's check-and-balance mechanism. Through its governance powers, the DAO holds veto rights over sensitive on-chain actions initiated by the Foundation. This veto authority is enforced through two separate governance contracts:
These veto powers ensure that ultimate authority rests with the community, not with any single entity.
Governance isn't just a safety net—it’s how the Term community ensures the protocol operates with integrity and accountability. While the Term Foundation is responsible for managing the protocol and allocating resources—including to the staking contract—the DAO acts as a guardian, holding veto power over key on-chain actions.
This oversight ensures that even as the protocol scales and generates revenue, no single entity has unchecked control. Governance gives token holders a meaningful way to protect and guide Term’s long-term direction.
To participate in governance and earn rewards, token holders can stake TERM. Staking involves delegating your vote—either to yourself or to someone else you trust to govern wisely.
In return for staking and being part of governance, stakers can earn USDC rewards distributed by the Term Foundation.
If no reward period is active, no rewards are distributed. However, other forms of recognition—like points or future incentives—may be introduced to encourage participation.
Rewards will be funded at the discretion of the Foundation, based on the protocol’s revenue after covering operational costs. In the early days, this may be modest, but as Term scales, we expect rewards to become regular and meaningful.
Staking is more than a way to earn—it’s a way to signal your commitment to Term’s long-term mission. By staking and participating in governance, you’re helping to keep the protocol accountable, efficient, and community-driven.
Whether you delegate to yourself or support another trusted participant, your vote—and your voice—matters.
👉 Ready to get involved? Start staking and delegating today: app.term.finance/term
