> For the complete documentation index, see [llms.txt](https://neiqw.gitbook.io/neiqw/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://neiqw.gitbook.io/neiqw/neiqw-tokenomics/liquidity-provider-incentives.md).

# Liquidity Provider Incentives

#### **Incentive Structure for Liquidity Providers** 

Liquidity providers who contribute to the NQW-BNB liquidity pool on Pangolin will receive Pangolin Liquidity Provider Tokens (PGL). To qualify for NQW rewards, these PGL tokens must be staked within the NEIQW protocol.

### **Governance in NEIQW**

#### **Transition to Decentralized Governance** 

As NEIQW evolves, it is set to undergo a transition towards complete decentralization, ultimately being overseen by a Decentralized Autonomous Organization (DAO) comprising NQW token holders. This governance structure will encompass both on-chain mechanisms and off-chain processes, ensuring a balanced and inclusive management approach.

#### **Initial Governance Role of the Founding Team** 

Initially, the NEIQW founding team will guide the protocol's launch and early governance phases, setting the stage for gradual community takeover.

#### **Utilization of NQW in Governance** 

NQW tokens will be pivotal in the governance of NEIQW. Token holders will utilize these tokens to propose and vote on NEIQW Improvement Proposals (NIPs), influencing critical aspects of the protocol's operation and strategic direction.

#### **Governance Proposals Could Include:**

* **Interest Rate Models**: Adjustments to the models dictating borrowing and lending rates.
* **Asset Inclusion**: Approval of new assets into the protocol, contingent upon meeting predefined risk criteria.
* **Risk Management Parameters**: Settings for overcollateralization thresholds and liquidation protocols to enhance platform security.
* **Liquidity Mining Adjustments**: Modifications to incentive structures in response to evolving market dynamics.
* **Protocol Upgrades**: Proposals for smart contract enhancements and changes to governance frameworks.

This structured approach to governance will ensure that NEIQW remains adaptive to user needs and market conditions while fostering a robust, user-driven community ecosystem.