How Does a Decentralized Autonomous Organization (DAO) Govern the Parameters of a Synthetic Asset?

A DAO governs the parameters of a synthetic asset by using its native governance token to vote on critical changes. These parameters include the collateralization ratio, the types of accepted collateral, the fee structure, and the list of tradable synthetic assets.

Proposals for changes are submitted by community members, voted on by token holders, and if passed, are executed through a governance smart contract, often with a time-lock delay. This ensures that the asset's risk and economic model are collectively managed.