docs(governance): governance, token, node ops

docs/docs.json

@@ -34,7 +34,9 @@
         "groups": [
           {
             "group": "SDK",
-            "pages": ["sdk/introduction"]
+            "pages": [
+              "sdk/introduction"
+            ]
           },
           {
             "group": "Getting Started",
@@ -105,23 +107,71 @@
               },
               {
                 "group": "@lit-protocol/auth",
-                "pages": ["sdk/sdk-reference/auth/functions/createAuthManager"]
+                "pages": [
+                  "sdk/sdk-reference/auth/functions/createAuthManager"
+                ]
               },
               {
                 "group": "@lit-protocol/networks",
-                "pages": ["sdk/sdk-reference/networks/functions/withOverrides"]
+                "pages": [
+                  "sdk/sdk-reference/networks/functions/withOverrides"
+                ]
               }
             ]
           },
           {
             "group": "Resources",
-            "pages": ["sdk/resources/supported-evm-chains"]
+            "pages": [
+              "sdk/resources/supported-evm-chains"
+            ]
           }
         ]
       },
       {
         "tab": "Changelog",
-        "pages": ["changelog"]
+        "pages": [
+          "changelog"
+        ]
+      },
+      {
+        "tab": "Governance",
+        "pages": [
+          "governance/overview",
+          "governance/governance-architecture",
+          "governance/lit-improvement-proposals",
+          {
+            "group": "$LITKEY Token",
+            "pages": [
+              "governance/litkey/overview",
+              "governance/litkey/initial-allocation-and-distribution"
+            ]
+          },
+          {
+            "group": "Lit Protocol Airdrop: Season 1",
+            "pages": [
+              "governance/airdrop/overview",
+              "governance/airdrop/eligibility-criteria",
+              "governance/airdrop/claiming",
+              "governance/airdrop/rewards"
+            ]
+          }
+        ]
+      },
+      {
+        "tab": "Node Operations",
+        "pages": [
+          "node-ops/overview",
+          "node-ops/requirements",
+          "node-ops/staking-and-delegation",
+          {
+            "group": "Lit Protocol v1: Node Operator Selection",
+            "pages": [
+              "node-ops/staking-contest/logistics",
+              "node-ops/staking-contest/registration",
+              "node-ops/staking-contest/acquire-stake"
+            ]
+          }
+        ]
       }
     ]
   },

docs/governance/airdrop/claiming.mdx

@@ -0,0 +1,5 @@
+---
+title: "Claiming Tokens"
+---
+
+Coming soon.

docs/governance/airdrop/eligibility-criteria.mdx

@@ -0,0 +1,5 @@
+---
+title: "Season 1 Eligibility Criteria"
+---
+
+Coming soon.

docs/governance/airdrop/overview.mdx

@@ -0,0 +1,29 @@
+---
+title: "Lit Protocol Airdrop: Season 1"
+---
+
+The Season 1 Lit Protocol Airdrop is designed to reward early contributors who played a meaningful role in bootstrapping the Lit ecosystem.
+
+This first distribution includes a diverse group of participants across several categories:
+
+1. Node Operators who supported testnet deployments and secured early network activity.
+
+2. Builders who shipped applications or tools using Lit infrastructure.
+
+3. Core Integration Partners who integrated Lit into other protocols or tooling.
+
+4. Quest Participants who completed tasks in campaigns such as Ciphernaut’s Path.
+
+5. Discord Contributors who helped moderate, educate, and onboard within the Lit ecosystem.
+
+6. Other Select Groups identified for their impact during Lit’s early growth phase.
+
+## Check Your Eligibility
+
+To see if you're eligible for the Season 1 airdrop, visit the [Airdrop Eligibility Checker](https://staking.litprotocol.com/airdrop) on the staking portal. You’ll need to connect your wallet or enter an address to view your claim status and allocation details.
+
+## Not Eligible? Get Involved
+
+If you’re not eligible for Season 1, don’t worry — more opportunities to get rewarded for making contributions to the ecosystem are on the way.
+
+Lit’s airdrop program will continue through seasonal distributions, rewarding meaningful participation across protocol governance, app development, node operations, and community engagement. Season 2 is currently active, with additional reward distributions planned for contributors and developers participating now.

docs/governance/airdrop/rewards.mdx

@@ -0,0 +1,5 @@
+---
+title: "Staking Rewards"
+---
+
+Coming soon.

docs/governance/governance-architecture.mdx

@@ -0,0 +1,68 @@
+---
+title: "Governance Architecture"
+---
+
+Lit Protocol’s governance system is built around four core areas of responsibility:
+
+1. Protocol Upgrades
+
+2. Ecosystem Funding and Resource Distribution
+
+3. Node Operator Onboarding and Coordination
+
+4. Metagovernance
+
+Each of these functions is administered by the Lit Association and the core development team in collaboration with the broader \$LITKEY community.
+
+## Protocol Upgrades
+
+Protocol upgrades refer to updates to the core Lit Protocol software that node operators run. These updates may include performance improvements, security patches, support for new cryptographic primitives, or entirely new functionality. 
+
+Upgrades are reviewed and approved by the Protocol Council, a group of core maintainers who coordinate updates via the Protocol Multi-Sig. This multisig acts as the final gatekeeper for pushing updates to the network.
+
+**Upgrade process**:
+
+1. Proposal and Review: Proposed builds are posted on the [governance forum](https://litprotocol.discourse.group/categories) for public review and comment at least one week prior to implementation.
+
+2. Feedback Consideration: Community feedback is encouraged and incorporated wherever possible.
+
+3. Approval and Release: Once reviewed and finalized, the build is approved by the Protocol Council and distributed to Lit Protocol node operators for installation.
+
+Protocol Council Multisig Address (2 of 3):
+[0xC6EBB3ca53D028F419F677Ed45126490331F728b](https://lit-chain-explorer.litprotocol.com/address/0xC6EBB3ca53D028F419F677Ed45126490331F728b?tab=index)
+
+## Node Operations
+
+Lit remains a federated network at this stage. This means that the set of node operators responsible for performing threshold cryptographic operations is curated, but members of the community can openly participate pending they meet the hardware and staking requirements. 
+
+New node operators will be approved, onboarded, and rotated on a quarterly basis, or sooner in the event of major network expansion (e.g. the launch of new [Realms](https://spark.litprotocol.com/enhancing-threshold-security-and-performance-at-scale-introducing-shadow-splicing/) to scale the network).
+In the future, as the network scales and new Realms are spun up, new node operators may be selected for participation in specific Realms even outside of regular onboarding windows.
+
+The initial node operator set will be selected via a staking contest beginning after Lit’s token generation event (TGE).
+
+To learn more about node operations, please reference the [node operator](/node-ops/overview) docs.
+
+## Metagovernance
+
+As the network and governance processes evolve, mechanisms for decision-making, funding, upgrades, and node coordination will require ongoing refinement. This function—metagovernance—encompasses the rules and structures that govern the governance system itself.
+Metagovernance includes:
+
+1. Adjusting quorum or voting thresholds
+
+2. Creating or deprecating working groups
+
+3. Modifying proposal flows or funding mechanisms
+
+4. Delegating additional responsibilities to the community over time
+
+Changes to any of these governance-level systems may be proposed through the Lit Improvement Proposal (LIP) process. LIPs are the primary method for community members to formally propose changes to any category outlined above. Read about the [LIP process](/governance/lit-improvement-proposals).
+
+## A Note on v0 Governance
+
+At launch, governance operations will be handled by the core development company working in collaboration with the Lit Association. Updates and transparency reports will be posted on the governance forum so the community can track decisions and outcomes.
+
+Because Lit Protocol has not yet launched its Naga mainnet, the scope of governance in v0 is intentionally limited. There is comparatively little to govern before mainnet is live, and changes to the initial governance structure will be introduced prior to the launch of Naga mainnet to support a broader and more decentralized system.
+
+During the first 30 days following the Lit Protocol TGE, the governance process will be refined and operational responsibilities gradually delegated to key stakeholders — including node operators, teams and individuals building on Lit and Vincent, and other external contributors — giving the wider ecosystem more control over governance operations.
+
+Feedback and suggestions on governance are encouraged and can be submitted via the [governance forum](https://litprotocol.discourse.group/). This phased approach makes the process transparent and allows the system to mature in step with the network’s evolution.

docs/governance/lit-improvement-proposals.mdx

@@ -0,0 +1,37 @@
+---
+title: "Lit Improvement Proposals (LIPs)"
+---
+
+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. 
+
+## 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.
+
+## 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.
+
+## 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. 
+
+

docs/governance/litkey/initial-allocation-and-distribution.mdx

@@ -0,0 +1,5 @@
+---
+title: "Initial Allocation and Distribution"
+---
+
+Coming soon.

docs/governance/litkey/overview.mdx

@@ -0,0 +1,27 @@
+---
+title: "Overview"
+---
+
+The \$LITKEY token underpins the entire Lit Protocol ecosystem, serving as a multi-dimensional work, payment, and governance token. Together, these dimensions aim to facilitate a self-sustaining token economy in which tokens are staked to secure the network, used as rewards to incentivize operator participation, exchanged to access cryptographic services, and to govern the continued growth and development of the Lit ecosystem.
+
+## Work Token: Securing and Incentivizing Service Providers
+
+The primary function of \$LITKEY is that of a work token: It plays a dual role in enforcing network security and compensating participants for maintaining protocol liveness.
+
+To participate in the Lit network, node operators must stake \$LITKEY tokens, committing economic value to signal their reliability and long-term alignment with network security. This staking mechanism ensures that operators have a vested interest in maintaining uptime, executing cryptographic tasks correctly, and adhering to protocol rules.
+
+In addition to securing the network, \$LITKEY is also used to compensate node operators who perform signing, encryption, and computation operations by running the core Lit software. The protocol distributes token rewards to operators based on a time-weighted staking mechanism, covered in depth in the [$LITKEY white paper](https://github.com/LIT-Protocol/LITKEY-Token-Paper-v1).
+
+## Payment Token: Paying for Network Services
+
+Beyond its role as a work token, \$LITKEY also functions as a service payment token, facilitating both on-chain and off-chain operations with Lit.
+
+As the native gas token for the Lit Chain, Lit’s Arbitrum Orbit-based L3 rollup, \$LITKEY is required to make any transactions on-chain, such as when generating new key pairs or staking. Aside from gas, $LITKEY is also to pay for signing, encryption, and compute operations provided by the network. Users and applications consuming Lit’s cryptographic services must pay per-transaction fees, ensuring that network resources are allocated efficiently while node operators are fairly compensated. Costs fluctuate based on demand, similar to gas-metering.
+
+## Governance Token: Steering Protocol Development
+
+\$LITKEY will also serve as a governance token for the Lit Protocol ecosystem, enabling token holders to direct the ecosystem’s evolution through a decentralized, on-chain governance system. Individuals holding $LITKEY will play an important role in selecting network operators, suggesting core protocol upgrades and feature enhancements, distributing public goods and grants funding, and other related functions. Additionally, token holders influence ecosystem growth by shaping strategies for partnerships, integrations, and network expansion. As the protocol matures, these governance mechanisms will continue to evolve.
+
+At the onset of Lit v1, the Lit Protocol Council will be tasked with overseeing the governance process in tandem with \$LITKEY token holders, as covered in depth in the [governance section](/governance/overview).
+
+

docs/governance/overview.mdx

@@ -0,0 +1,36 @@
+---
+title: "Overview"
+---
+
+Lit Protocol has established an initial governance system to guide and organize its development and operations. This system exists to manage decision-making related to the core protocol, the infrastructure that supports it, and the broader ecosystem of applications built on top of it.
+
+## Purpose
+
+The purpose of Lit’s initial governance structure is to coordinate and oversee four key areas:
+
+1. Protocol Upgrades: Reviewing, approving, and distributing new software builds to node operators.
+
+2. Resource Allocation and Ecosystem Funding: Distributing capital and other resources to support teams building on top of Lit infrastructure.
+
+3. Node Operations: Setting and managing standards for node operator participation and performance.
+
+4. Metagovernance: Defining and evolving the structures, roles, and processes that govern Lit itself.
+
+
+By establishing clear decision-making and implementation workflows around these areas, governance ensures that protocol development remains coherent, auditable, and extensible.
+
+## Governance Composition
+
+At launch, governance is managed by the Lit Association, a Swiss non-profit organization dedicated to stewarding the long-term growth of the protocol. In collaboration with the core development company behind Lit, the Association is responsible for maintaining key infrastructure, initiating governance processes, and coordinating core protocol operations.
+While the Association will be tasked with helping steward initial participation in governance across the Lit ecosystem, operations will be passed down progressively to a broader set of stakeholders, including ecosystem developers, node operators, researchers, and community members.
+
+## What This Documentation Covers
+
+This governance documentation is divided into three sections:
+
+1. Overview (this page): Context and goals of Lit’s initial governance system.
+
+2. Governance Architecture: Breakdown of the specific components involved in protocol decision-making.
+
+3. Lit Improvement Proposals (LIPs): An introduction to the process for submitting formal proposals to improve the protocol or ecosystem. This section includes details on eligibility, formatting, submission, and approval workflows.
+

docs/node-ops/overview.mdx

@@ -0,0 +1,17 @@
+---
+title: "Overview"
+---
+
+Lit Protocol is secured and operated by a decentralized network of validator nodes. These nodes are responsible for executing the threshold cryptographic operations that underpin the core functionality of the network, including signing, encryption, decryption, and private compute via Lit Actions.
+
+Each node participates in threshold signature multi-party computation (TSS MPC) protocols and operates inside a confidential compute environment (TEE), ensuring that no single operator can access plaintext key material or violate policy constraints.
+
+Lit node operators are responsible for configuring and maintaining their secure hardware environment which collectively facilitate all network operations (i.e. generating key shares, executing Lit Actions, etc). For an in-depth review, check out the [security docs](/learning-lit/security).
+
+## Mainnet Node Operator Selection: The Staking Contest
+
+A staking and delegation contest will be run to select the genesis validator set for Lit Protocol’s upcoming Naga mainnet. The contest is open to anyone who meets the hardware and staking requirements and expectations which are covered in depth in the next section. 
+
+To whitelist your node, visit https://staking.litprotocol.com/ 
+
+Refer to the next page for details on hardware specs, minimum requirements, and operational guidelines for node operators.