Cancel proposal #85 by unblocking restricted flags and replace with simpler system.
Aquarius governance proposal #121 replaces the restricted-asset whitelist system with graduated penalties for assets with regulatory flags (AUTH_REQUIRED, AUTH_REVOCABLE, AUTH_CLAWBACK_ENABLED). Each flag incurs a 30% penalty, stacking up to 90%, with AUTH_IMMUTABLE capping penalties at 30%. Goal is to simplify governance while allowing regulated assets and leveling competition for smaller projects in reward distribution.
Aquarius governance proposal #121 aims to replace the current restricted-asset whitelist with a simpler penalty-based system. Instead of outright blocking regulated assets, the new mechanism applies graduated penalties: assets with AUTH_REQUIRED, AUTH_REVOCABLE, or AUTH_CLAWBACK_ENABLED flags each face a 30% reduction in rewards. Penalties are cumulative up to a maximum of 90%, but if AUTH_IMMUTABLE is also set, the maximum cap remains at 30% regardless of how many other flags are present. This approach is intended to reduce governance overhead while opening Aquarius markets to institutions with regulated assets, with the penalty structure ensuring smaller projects can still compete fairly for rewards.
