---
# System prepended metadata

title: Liquity V2 governance

---

# Liquity V2 governance system

```mermaid
flowchart TD
    User[User] --> |Deposit LQTY| Governance[Governance Contract]
    
    Governance --> |Deploy| UserProxy[User Proxy]
    UserProxy --> |Stake LQTY| StakingV1[LQTY StakingV1]
    
    User --> |Allocate Voting Power| Governance
    User --> |Deposit Bribes| BribeInitiative[Bribe Initiative]
    
    %% Governance system core flow
    Governance --> |Snapshot Votes| VoteDistribution[Vote Distribution]
    Governance --> |Accrue BOLD| Revenue[Protocol Revenue]
    
    %% Revenue flow
    Revenue --> |Distribute Based on Votes| Initiatives[Initiatives]
    
    %% Initiative types
    Initiatives --> BribeInitiative
    Initiatives --> CurveGauge[Curve V2 Gauge Rewards]
    Initiatives --> OtherInitiatives[Other Initiatives]
    
    %% Gauge interaction
    CurveGauge --> |Deposit BOLD Rewards| LiquidityGauge[Curve Liquidity Gauge]
    
    %% Epoch cycle
    subgraph EpochCycle[Epoch Cycle]
        Voting[Voting Period] --> Snapshot[Snapshot]
        Snapshot --> Distribution[Distribution]
        Distribution --> NextEpoch[Next Epoch]
        NextEpoch --> Voting
    end
    
    %% Claiming paths
    User --> |Claim BOLD and Bribes| Claiming[Claim Rewards]
    Claiming --> BribeInitiative
    Claiming --> CurveGauge
    
    %% Initiative states
    subgraph InitiativeStates[Initiative States]
        Registered[Registered] --> WarmUp[WARM_UP]
        WarmUp --> Claimable[CLAIMABLE]
        Claimable --> Claimed[CLAIMED]
        Claimable --> Skip[SKIP]
        Skip --> Unregisterable[UNREGISTERABLE]
        Unregisterable --> Disabled[DISABLED]
    end
    
    %% System components
    subgraph Components[System Components]
        GovContract[Governance Contract]
        UserProxies[User Proxies]
        InitiativeContracts[Initiative Contracts]
        VotingMechanism[Voting Mechanism]
        RewardDistribution[Reward Distribution]
    end
    
    %% Token flow
    subgraph TokenFlow[Token Flow]
        LQTY[LQTY Token] --> |Staking Power| VotingPower[Voting Power]
        BOLD[BOLD Token] --> |Protocol Revenue| Rewards[Rewards]
        BribeToken[Bribe Tokens] --> |Additional Incentives| Bribes[Bribes]
    end
```