SwissBorg’s governance body, known as the Guardians, has put forward a proposal to simplify how the community decides what happens with BORG tokens accumulated through platform buybacks. The change would reduce voting options from four to three, with the headline addition being a permanent DAO Fund designed to provide steady, ongoing support to the broader BORG ecosystem.

A community vote on the proposal closed on June 14, 2026. Participation required users to lock or stake their BORG tokens within the app to earn voting power, a mechanism that ties governance influence directly to skin in the game.

What’s actually changing

Every quarter, SwissBorg’s Guardians Pool, which gets funded through buybacks from platform profits, distributes BORG tokens based on a community vote. Token holders currently choose between four allocation buckets: Burn, Safety Net, Governance Rewards, and Special Initiative.

The proposed system trims that to three options. The most notable shift is the introduction of a permanent DAO Fund as one of those three choices, replacing the more ad hoc nature of some previous categories.

The “Special Initiative” category, which previously allowed for one-off community proposals and dynamic decision-making, appears to be the option making way for this more permanent funding vehicle.

Why a permanent DAO Fund matters

Quarterly allocation votes are inherently reactive. Community sentiment shifts, market conditions change, and the result is that ecosystem funding can look very different from one quarter to the next. A permanent DAO Fund creates a baseline, ensuring that some portion of buyback-derived tokens is consistently earmarked for ecosystem development.

It’s also worth noting that BORG itself is the product of an earlier governance evolution. The token was previously known as CHSB before transitioning to its current form.

What this means for BORG holders

The staking requirement for voting power creates a natural incentive loop. If you want a say in how tokens are allocated, you need to lock up your BORG. That reduces circulating supply during governance periods and ties holders more tightly to the ecosystem.

Simplifying from four options to three reduces cognitive load on voters. Fewer choices, clearer stakes. Whether the permanent DAO Fund actually delivers better outcomes for the BORG ecosystem will depend entirely on how the funds get deployed once they’re allocated.