Implement on-chain governance system (RC3-005)

[Copilot]

Adds complete decentralized governance for protocol management via token-weighted voting with delegation, timelocks, and guardian emergency controls.

Implementation

Core governance crate (bitcell-governance)

• Proposal types: parameter changes, treasury spending, protocol upgrades
• Voting methods: linear (1 CELL = 1 vote) or quadratic (√CELL = votes) for Sybil resistance
• Delegation: non-custodial, accumulative, revocable
• Timelocks: 2 days (params/upgrades), 6 hours (treasury)
• Guardian multi-sig: configurable threshold (default 2-of-3) for emergency cancel/execute

RPC integration (bitcell-node/governance_rpc.rs)

• 6 endpoints: gov_{submitProposal,vote,getProposal,finalizeProposal,delegate,getVotingPower}
• Full JSON-RPC 2.0 compliance with hex address parsing

Security

• Saturating arithmetic throughout (no overflow/underflow)
• SHA-256 proposal IDs (collision resistance)
• Double-vote prevention per proposal
• Quorum enforcement (10K CELL default)
• Comprehensive audit logging with tracing

Usage

// Submit parameter change proposal
let proposal_id = gov.submit_proposal(
    proposer,
    ProposalType::ParameterChange {
        parameter: "max_block_size".to_string(),
        new_value: "2000000".to_string(),
    },
    "Increase block size to 2MB".to_string(),
    timestamp,
)?;

// Vote with quadratic voting enabled
gov.vote(proposal_id, voter, true, 10000 * CELL, timestamp)?;
// Effective power = √10000 = 100 votes

// Finalize after 2-day timelock
gov.finalize_proposal(proposal_id, timestamp + TWO_DAYS)?;

Testing

• 20+ unit tests covering proposal lifecycle, voting methods, delegation chains, timelock enforcement
• 18 integration tests for complete flows including guardian overrides
• Performance benchmarks for all operations

Files

New

• crates/bitcell-governance/ - Complete governance implementation (5 modules, 2.8K LOC)
• crates/bitcell-node/src/governance_rpc.rs - RPC endpoint handlers
• docs/GOVERNANCE.md - Architecture and API reference
• docs/GOVERNANCE_IMPLEMENTATION_REPORT.md - Completion analysis

Modified

• Cargo.toml - Add governance to workspace
• crates/bitcell-node/{Cargo.toml,src/lib.rs,src/rpc.rs} - RPC integration

Original prompt

Phase 2: RC3 Governance Implementation (Days 8-21)

This epic tracks the completion of the on-chain governance system, a critical component for RC3 and mainnet preparation.

Objective

Complete and merge the governance system implementation to enable decentralized protocol management and satisfy RC3-005 requirements.

Background

PRs #119 and #124 contain a full governance implementation with:

• Proposal system (parameter changes, treasury spending, protocol upgrades)
• Token-weighted voting (linear and quadratic options)
• Delegation support
• Type-specific timelock delays
• Multi-sig guardian controls (2/3 majority)
• 20 comprehensive unit tests

Tasks

1. Code Review and Testing

• Review PR feat: Implement On-Chain Governance System: Proposals, Voting, Execution #119 - Initial governance implementation

  • Verify proposal lifecycle (submit → vote → finalize → execute)
  • Test token-weighted voting mechanisms
  • Validate delegation logic and double-vote prevention
  • Check timelock enforcement (2 days for params/upgrades, 6 hours for treasury)
  • Review guardian emergency controls

• Review PR Implement on-chain governance system (RC3-005) #124 - Enhanced governance with documentation

  • Verify security features (saturating arithmetic, overflow protection)
  • Review custom serialization for 33-byte pubkeys
  • Validate quadratic voting implementation with integer sqrt
  • Confirm all 20 unit tests pass

2. Integration and Documentation

• Integration Testing

  • Test governance system with live node
  • Verify proposal submission via RPC
  • Test voting from multiple wallets
  • Validate execution after timelock expiry
  • Test guardian override scenarios

• Documentation Verification

  • Review docs/GOVERNANCE.md for completeness
  • Verify crates/bitcell-governance/README.md quick start guide
  • Ensure API examples are accurate and functional
  • Add governance endpoints to RPC documentation

3. Security Audit Preparation

• Security Review

  • Audit arithmetic operations for overflow/underflow risks
  • Verify proposal ID generation prevents collisions
  • Review vote counting logic for manipulation vulnerabilities
  • Validate guardian multi-sig implementation
  • Check for potential governance attacks (vote buying, whale control)

• Economic Analysis

  • Verify quorum requirements (default 10K CELL) are appropriate
  • Validate timelock periods are sufficient for community response
  • Review guardian threshold (2/3 majority) security properties
  • Assess quadratic voting resistance to Sybil attacks

4. Merge and Deployment

• Final Review and Merge

  • Ensure all tests pass
  • Verify no breaking changes to existing systems
  • Update CHANGELOG with governance features
  • Merge PRs feat: Implement On-Chain Governance System: Proposals, Voting, Execution #119 and Implement on-chain governance system (RC3-005) #124
  • Close issue Implement On-Chain Governance System: Proposals, Voting, Execution #63

• Deployment Preparation

  • Create governance deployment guide
  • Document initial guardian setup
  • Prepare genesis governance parameters
  • Create governance usage tutorials

Success Criteria

• PRs feat: Implement On-Chain Governance System: Proposals, Voting, Execution #119 and Implement on-chain governance system (RC3-005) #124 merged
• Issue Implement On-Chain Governance System: Proposals, Voting, Execution #63 closed
• All 20 unit tests passing
• Integration tests pass on testnet
• Security review completed with no critical findings
• Documentation complete and accurate
• Governance endpoints functional via RPC
• Epic [EPIC] RC3: Developer Ecosystem & Tools #78 (Developer Ecosystem) unblocked

Acceptance Criteria (per RC3-005)

• Proposals can be created and voted on
• Execution happens automatically after passing
• Emergency governance tested (guardian controls)
• Token-weighted voting (1 CELL = 1 vote)
• Delegation support implemented
• Timelock delay enforced
• Multi-sig guardian override functional

Dependencies

• Requires Phase 1 completion
• Blocks Epic [EPIC] RC3: Developer Ecosystem & Tools #78 completion

Timeline

Target: 14 days (December 24, 2025 - January 7, 2026)

Related Issues

• Implement On-Chain Governance System: Proposals, Voting, Execution #63 - Implement On-Chain Governance System
• Epic [EPIC] RC3: Developer Ecosystem & Tools #78 - RC3: Developer Ecosystem & Tools

References

• docs/RELEASE_REQUIREMENTS.md - RC3-005 specification
• docs/GOVERNANCE.md - Architecture and usage
• crates/bitcell-governance/README.md - Quick start guide
• PR feat: Implement On-Chain Governance System: Proposals, Voting, Execution #119 - Initial implementation
• PR Implement on-chain governance system (RC3-005) #124 - Enhanced implementation with docs

This pull request was created from Copilot chat.

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