# Governance

Nuon’s architecture optimizes for the lowest risk and highest yield through its veto-based governance. It is flexible enough to add new strategies, bootstrapping through partnerships, and initial token distribution to tap into a de facto council of aligned experts. The governance module itself is lightweight and limited in scope.

MaxCap token holders stake their tokens to receive weighted voting rights, which is a prerequisite for earning rewards.

 MaxCap stakers are able to:

1. Veto proposed vaults, which they deem too risky
2. Vote on which vaults should receive new USDC deposits
3. Set the Treasury buffer amount and cap NUON minting