A Token House governance proposal is considered valid when it meets specific criteria related to the number of votes: ### Quorum This refers to the minimum number of total OP votes, which includes abstain votes, that must be cast for a proposal to be eligible. Quorum is calculated as a percentage of the total votable OP supply at the start of the voting period. The "votable supply" encompasses the OP tokens that have been delegated and are eligible to participate in the voting process. ### Approval Threshold To approve a proposal, a minimum number of OP votes must be in favor of it. The approval threshold for each proposal is determined as a percentage of the votes cast in favor of approval relative to the total number of yes and no votes. Abstain votes are not included in this calculation. The table below showcases different requirements for submission and approval of each proposal type:

Proposal Type	Proposing House	Description	Submission Requirements	Vote Duration	Quorum	Approval Threshold	Veto Threshold	Veto Rights
Governance Fund	Token House	The Governance Fund may be used to support development of the Collective and/or growth of the ecosystem.	Forum + On-Chain Voting	Two-week review period plus one week voting window	30%	51%	N/A	N/A
Protocol Upgrade	Token House	Scheduled changes to the on-chain smart contracts comprising the mainnet Optimism protocol. Please reference the Framework for Protocol Upgrades to understand when governance approval is required.	Forum + On-Chain Voting	Two-week review period plus one week voting window	30%	76%	30%	Citizens' House
Inflation Adjustment	Token House	Changes to the inflation rate of newly minted OP (currently capped at 2% annually)	Forum + On-Chain Voting. Proposals should follow this template.	Two-week review period plus one week voting window	30%	76%	TBD	Citizens' House
Director Removal	Token House	Removal of a director of the Optimism Foundation	Forum + On-Chain Voting	Two-week review period plus one week voting window	30%	76%	N/A	N/A
Treasury Appropriations	Token House	The amount of OP the Optimism Foundation may spend or distribute annually, beginning in Year 2 of its existence (the Year 1 budget is 30% of the initial total OP supply)	Proposals to be initiated by the Foundation	Two-week review period plus one week voting window	30%	51%	N/A	N/A
Rights Protections	Token House	OP holders must consent to any changes to the founding documents of the Optimism Foundation, if those changes would materially reduce their rights	Proposals to be initiated by the Foundation	Two-week review period plus one week voting window	30%	51%	N/A	N/A
Code of Conduct Violation	Token House	Token House Code of Conduct violations will be processed by the Code of Conduct Council, subject to veto by the Token House.	Proposals to be initiated by the Token House Code of Conduct Council outlining any enforcement actions.	Two-week review period plus one week voting window	N/A	N/A	12%	Token House
Collective Council or Advisory Board Member Removal	Token House	Collective Council or Advisory Board members may be removed from their position for failing to uphold the responsibilities outlined in the relevant Charter or to act with honesty, integrity, and transparency.	Forum + On-Chain Voting.	Two-week review period plus one week voting window	30%	51%	N/A	N/A
Council Dissolution	Token House	A persistent Council may be dissolved if it is no longer fulfilling its Charter	Forum + On-Chain Voting	Two-week review period plus one week voting window	30%	51	N/A	N/A
Ratification	Token House	Ratification of governance documents	Proposals to be initiated by the Foundation	Two-week review period plus one week voting window	30%	51	N/A	N/A
Reflection Period Proposals (including elections)	Token House	Experiments with new governance structures, programs, and/or processes	Proposals to be initiated by the Foundation	Two-week review period plus one week voting window	30%	51	N/A	N/A