Alvara operates as a Decentralised Autonomous Organisation (DAO) led by ALVA token holders. By staking tokens, holders receive veALVA and gain the ability to participate in protocol governance.

Anyone with a minimum of 2000 veALVA can create proposals, and every veALVA holder is entitled to vote on them.

The Alvara DAO operates with a 20% quorum. This means at least 20% of veALVA holders must participate in a vote for it to be valid. Any changes to this quorum can only be made via DAO proposals. Similarly, the pass rate, which stands at 51% for a proposal to succeed, can also be adjusted through DAO proposals.

Importantly, enacted proposals can be rescinded by submitting another proposal that fulfils the same quorum and pass rate conditions.

In a nutshell, Alvara Protocol's governance structure empowers token holders with a clear, democratic mechanism for participating in decision-making. As a DAO, Alvara ensures that the Protocol's evolution aligns with the best interests of its community members.