Equilibrium uses an on-chain governance mechanism to manage and upgrade aspects of the framework that reside in the Equilibrium Core Contracts.
Equilibrium’s global risk parameters are configured by a governance mechanism, which means that NUT holders get to vote on proposals to change the framework’s parameters. If the majority agrees on new parameters, those become the norm.
Another important aspect of the Governance contract is the ability of NUT token holders to direct the liquidity pool to additional revenue streams available inside the EOS ecosystem, including (but not limited to): EOS REX resource lending, EOS block producer voting, and profit sharing.
Last but not least: the Governance contract allows NUT token holders to create proposals and vote on them for effective decentralized autonomous management of the entire framework.