Can blockchain projects go far? Governance systems are the touchstone. As the native token of the Plasma network, XPL's governance design directly impacts the stability of the entire payment ecosystem.

Plasma's goal is clear—build a chain with Bitcoin-level security that supports USDT zero-fee transfers. To maintain the healthy operation of this system, XPL governance must play a key role.

**Where does power come from**

XPL adopts a Proof-of-Stake mechanism to distribute voting rights. Participants earn voting power by staking tokens. This approach has been validated on Cosmos and Polkadot, with Plasma optimized for payment scenarios.

Out of the total supply of 10 billion XPL, 40% is allocated to ecosystem growth. How these funds are spent and where they go are decided by governance votes. No single person or team has absolute control; resources are directed toward DeFi incentives and institutional collaborations, preventing reckless spending.

The proposal threshold is set at 0.1% of circulating supply, enough to filter out spam proposals while not turning participation into an exclusive game for the wealthy.

**How to vote**

From proposal to execution, there are four steps: submit → discuss → vote → execute. Participants share ideas on forums or Discord, then cast on-chain votes weighted by their staked amount. Majority approval can push proposals forward, with decisions truly driven by data.

This design gives every participant a chance to shape the future of Plasma.