Silo's lending protocol (Silo Finance) is owned and operated by the Silo DAO. The governance token ($SILO) endows holders with full control over the DAO and its lending protocol through voting and delegation rights. The core contributors team have laid the foundation for the protocol to flourish, but it is the community that will ensure we become the leading protocol for secure money markets.
Silo implements OpenZeppelin Governor - a governance model of delegated voting, similar to one Compound uses. With the delegated governance model implemented, token holders can vote on proposals or delegate their voting power to other members of the community to vote on their behalf.
Token holders are able to vote on the following aspects among others:
Deploying new markets (Silos) with custom parameters (LTV, LT, Interest Model, Price Feed)
Adjusting a market's settings including increasing/decreasing LTV, LT, changing interest model and replacing current price feed.
Adding/Removing a bridge asset(s).
Turning on/off DAO’s fee mechanisms.
Increasing token supply. This functionality is something the DAO might consider to remove at any point and effectively place a perpetual hard cap on token supply.
Directing the protocol-controlled assets to where it’s beneficial to the growth of the protocol.
Similar to established DAOs, the Silo governance forum is a place where governance members share their opinion by broadcasting proposals to the other members of the organization. Each token holder can then vote to accept or reject any proposal.