# Governance & Compliance

Cortensor's governance and compliance framework is designed to ensure that the network operates transparently, securely, and in full compliance with relevant legal and regulatory standards. This section details the governance mechanisms of the Cortensor token and the compliance measures in place to maintain a secure and well-regulated network environment.

### **Governance Framework**

**Decentralized Governance:**\
Cortensor utilizes a decentralized governance model where token holders influence decision-making processes. Token holders can propose and vote on critical network decisions, upgrades, and policies, ensuring the network evolves according to the community's collective vision.

**Voting Mechanisms:**\
Voting is conducted without the need to lock or spend tokens, allowing users to retain full control of their assets. The voting power of each participant is proportional to the number of tokens held, incentivizing active involvement from stakeholders.

**Governance Proposals:**\
Any token holder can submit proposals, provided they meet predefined criteria. These proposals may address various aspects of the network, including upgrades, protocol modifications, and community-driven initiatives.

**Reputation and Staking:**\
Participants can stake tokens to engage in governance activities, aligning their interests with the network’s success. Staking increases accountability, and non-compliance or misconduct can lead to slashing, where staked tokens are forfeited.

**Compliance Measures**

**Legal and Regulatory Adherence:**\
Cortensor is committed to operating within the bounds of applicable legal and regulatory frameworks. The network undergoes regular audits and assessments to ensure ongoing compliance and to address any potential legal issues proactively.

**Data Privacy and Security:**\
Cortensor adheres to stringent data privacy regulations and employs industry best practices in data handling. The network uses advanced encryption methods and secure storage protocols to safeguard user data against unauthorized access and breaches.

**KYC and AML Policies:**\
To maintain network integrity and prevent fraudulent activities, Cortensor enforces Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. Participants may be required to undergo KYC verification to access certain functionalities or roles within the network.

