Governance Mechanisms

Overview of Governance

By integrating governance to direct the Rizenet blockchain development, we're decentralizing the decision- making processes in order to become a uniting force for users and service providers with a shared vision. The

vision is to elevate Rizenet into a leading hub for institutional tokenization services, creating opportunities for collaboration and interoperability. This interconnectedness not only amplifies the benefits for stakeholders but also strengthens the network effect, driving collective growth.

Crucially, governance ensures that every stakeholder's voice is heard and their needs are met. We believe in harnessing the collective knowledge of the T-RIZE community, coupled with the transparency of open governance, to catalyze a powerful movement for tokenization. This inclusive approach empowers stakeholders to actively shape the future of the T-RIZE ecosystem, fostering innovation and resilience through decentralization.

Governance Use Cases and Limitations

The governance’s long-term vision should be the decentralization and democratization of tokenization technology. This includes bringing tokenization to more markets and everyone, everywhere. This can be achieved by developing the ecosystem of providers building on Rizenet and its tokenization services.

Some examples of decisions which could be up to the governance :

• Funding new projects to build on Rizenet.
• Fund technological enhancements.
• Fund blockchain and ecosystem R&D.
• Offering incentives for external projects to integrate with the ecosystem .
• Distributing grants to support community-driven developments.
• Allocating liquidity farming rewards to stimulate network activity.
• Financing targeted marketing campaigns to broaden outreach and adoption.
• Token swaps to align incentives with other providers.

If a request involves a structural change, it is essential to obtain a legal opinion to ensure it does not inadvertently create a security token. Similarly, for certain governance votes, securing a legal opinion to confirm regulatory compliance is necessary. The costs associated with these legal checks will be covered by the governance treasury.

T-RIZE Group’s Role in Governance

On the other hand, T-RIZE Group’s vision is to become a pioneer of this open ecosystem specialized in tokenization. While we will be actively contributing to the ecosystem, we intend to stay a centralized entity in order to provide compliant services. The T-RIZE tokenization platform and its tokenization projects are exclusively governed and managed by the T-RIZE Group, independent of the governance mechanisms described in this section.

Examples of Positive Value Community Proposals for Rizenet Governance

Category	Proposal	Description
Ecosystem Promotion and Expansion	Listing $RIZE on Centralized Exchanges	Target high-volume exchanges to increase liquidity and visibility, aiming for listings on X major exchanges.
	Launching a marketing campaign	Execute targeted digital marketing campaigns across social media and crypto- focused community to increase user adoption, follower metrics and platform usage with $RIZE rewards and a $RIZE budget for marketing partnerships.
	Expanding to new DEXs / supporting a new project / supporting a new blockchain	Broadens the ecosystem’s reach, liquidity and user base, enhancing global presence by attracting new projects or supporting a new blockchain.
	Building Partnerships	Target and form strategic partnerships with key technology providers in the blockchain space to enhance the ecosystem’s capabilities.
	Creating educational resources	Hire a third-party to develop a comprehensive online learning hub with tutorials and webinars aimed at reducing entry barriers for new users. Mandate to be assigned according to community vote.
Community Engagement and Support	Add staking rewards to bonds	Allocate part of the treasury to reward governance participants.
	Developing a community grants program	Allocate a budget of $RIZE annually to fund community projects that drive innovation and growth within the ecosystem.
	Organizing community events	Host quarterly virtual and annual physical community events to strengthen network connections and collaboration.
	Establishing a community advisory board	Form a board of five to seven community-elected members to facilitate regular feedback and input on development directions.
	Launching a loyalty program	Introduce a loyalty program that rewards users based on transaction volume and duration of token holding.
Development Incentives	Launching a developer fund	Establish a fund of $RIZE to support developers creating decentralized applications on Rizenet over the next two years with a list of preferred dApps, service and platform support. (i.e. Compliance, Custody, DEX, Identity, Interoperability, Marketplace, Reporting, Security, Staking, Tokenization, Wallets)
	Launching a bug bounty program	Offer a rewards program in $RIZE for critical vulnerability discoveries to incentivize proper disclosure of issues.
	Onboarding Incentives for New Projects	Create a structured incentive program that rewards the first 50 projects integrating or tokenizing assets on Rizenet with reduced fees and technical support.