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Lit Improvement Proposals (LIPs) are used to propose new features and upgrades to the core Lit Protocol architecture (including smart contracts) and surrounding ecosystem. LIPs are organized into three categories based on their specific content and area of focus. As covered in the sections above, these categories include protocol level improvements, treasury allocation, and governance improvement proposals. LIPs are used to publicly and transparently track protocol upgrades, new features, and growth initiatives through a standardized template and workflow. All LIPs go through the LIP process (documented below) before being passed off to the Protocol Council for final review and approval. If approved, the proposal is then passed off to the relevant parties for execution / implementation.

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LIP Process

All LIPs are initially submitted and discussed in the relevant category of the Lit governance forum. After a given proposal has moved past the “idea” stage, it must be submitted as a pull request to the LIP repo on GitHub. All LIPs are tagged on the Lit governance forum and associated GitHub repo based on the specific stage they are in:
  • “Idea”: initial proposal ideas are submitted to the governance forum for discussion and refinement.
  • “Draft”: after a proposal has moved past the “idea” stage, it is submitted to the LIP repo as an official draft proposal. The template can be found here.
  • “Review”: after a draft proposal has been submitted, it is reviewed by the relevant parties which vary according to the context of the proposal itself.
  • “Vote”: proposals that move to the “vote” stage are passed off to the Protocol Council for final review and approval.
  • “Accepted”: proposals that have been reviewed and accepted by the Protocol Council.
  • “Implementing”: proposals that are actively being implemented.
  • “Completed”: proposals that have been accepted and implemented.
  • “Rejected”: proposals that have been rejected by the Protocol Council.
  • “Closed”: proposals that have been closed.

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Lit Protocol Council Review Process

After a LIP has been submitted as a draft and reviewed by the relevant stakeholders, it will be passed off to the Protocol Council for final review before it is either accepted (where it is then passed off to the relevant parties for implementation) or rejected. During the review process the Protocol Council will ensure that the proposal adheres to the Lit Protocol mission, values, growth objectives, and security considerations. After a given LIP has been reviewed, the Protocol Council will report their decision on the relevant forum discussion post where it will be updated accordingly. If the LIP has been accepted, this will include a link to the official Protocol Council vote conducted on-chain. If the LIP is rejected, the requested revisions and / or reasons for rejection will be published accordingly.

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Submitting LIPs

At this time, the Lit Protocol development company will be the primary party tasked with creating and submitting new LIPs. However, anyone can suggest improvements or changes by starting a discussion on the Lit governance forum using the applicable “idea” tag. All suggestions will be reviewed and prioritized according to current protocol objectives and available resources. As discussed in the sections above, the Protocol Council will be the core body tasked with reviewing and approving or rejecting all LIPs at this time. Once Lit Protocol and its associated governance processes have reached a greater level of maturity and stability, the Protocol Council may be dissolved entirely with governance decision making being passed off to relevant ecosystem stakeholders and working groups.
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