> For the complete documentation index, see [llms.txt](https://valuex.gitbook.io/valuex-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://valuex.gitbook.io/valuex-whitepaper/value-x-whitepaper/11..md).

# 11. Governance and Operating Entities

Chain operation, parameter changes and sponsorship wallet management are each assigned to a distinct responsible party.

### 11.1 Separation of Roles and Permissions

The issuing and operating entity is VLX Etherflow Technologies INC (registration number 155790232), established under the laws of the Republic of Panama.

As a rule, the governing law and the jurisdiction for disputes are those of the Republic of Panama, but this does not exclude the application of mandatory rules in the user's place of residence.

![](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FGWxfrx0USQ4goevfRzjd%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2005_26_47-1.png?alt=media\&token=5e568fe5-a04c-4348-b7f7-e61600a44b07)

\
Upgrades, parameter changes and payments from the sponsorship wallet each require a separate multisig. For a multisig to act as a real check, its signers must be independent of one another, and the composition of the signers is disclosed through official channels.

### 11.2 Parameter Change Procedure

![Figure 16. Parameter change procedure and multisigs separated by permission](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FIYpECYJVJOolXOSFzz39%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2005_26_50-2.png?alt=media\&token=1e787d42-189d-4ede-8b25-4cb6096e09f8)

Parameters that affect economic outcomes, such as the burn percentage, fee rates, the unlock cap and verification rules, change only through the following procedure.

1. Change proposal: the content, reasons and impact are made public
2. Advance disclosure period
3. Multisig approval: signatures meeting or exceeding the threshold
4. On-chain record: the change and its effective date
5. History retention: past parameters and the periods in which they applied

As a rule, disclosure is made in advance. An exception is allowed only in emergencies, such as responding to a security vulnerability, and only on condition that disclosure is made after the fact.

### 11.3 Selecting and Managing Sponsored Organizations

Sponsored organizations are selected against the following four criteria.

* It is a registered nonprofit organization with a confirmed track record of public-interest activities
* Its financial reports are public and can be verified externally
* It has the capacity to manage an on-chain wallet, or has a custody arrangement in place
* It is not a related party of the operating entity

The list of organizations and their receiving wallet addresses are published in advance, and payment records are published quarterly together with on-chain evidence. If an organization is found to no longer meet the selection criteria, or accounting fraud or a halt in its activities is confirmed, it is replaced immediately and the reason is disclosed. The sponsorship wallet is managed with multisig.

### 11.4 Progressive Decentralization

![](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FKZOilIW3Tm7S6Fsvn40X%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2005_31_15.png?alt=media\&token=3d257ae3-563a-4877-bf36-a88a5b79bc59)

In the early stage, the operating entity leads decision-making to speed up project execution and manage security. Later, once a base of voting participation and a staking and slashing structure are in place, the protocol will be run by an open validator set according to the decisions of on-chain governance (DAO).

The move to on-chain governance comes with prerequisites. Whether a base of voting participation and a staking and slashing structure are in place will be assessed first, and the decision to make the move will then be disclosed.

\\<br>

***