# QUARTZ

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Reading about the [DAO's Philosophy](https://docs.sandclock.org/current/quartz-and-the-dao/..#philosophy) is heavily recommended.
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## Governance <a href="#governance" id="governance"></a>

Token holders participate in governance and have control over protocol parameters and $QUARTZ distribution.

For more details, check out [Governance](https://docs.sandclock.org/current/quartz-and-the-dao/governance).

## Fee Capture

Sandclock's metavaults charge a performance fee over the yield generated. **The fee is owned by QUARTZ holders.**

However, instead of using it for immediate value accrual, this capital is redeposited to the protocol as a SPONSOR and thus, **the yield generated by this capital is used to boost all deposits,** thereby creating a positive feedback loop, attracting more capital, and therefore, more fees.

<figure><img src="https://4255627700-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MeLp5OA4N-EJ4pU0vqw%2Fuploads%2FbQnsnUyqLzQIU1UsEGPM%2Fsc-quartz-flywheel.png?alt=media&#x26;token=3a5d9319-8d91-403e-8ef0-26a20298349a" alt=""><figcaption></figcaption></figure>

In the future, if the DAO desires, a rageQuit() function can be implemented, where burning QUARTZ will withdraw a proportional amount of the treasury to the account owner.

Other value accrual mechanism will be also be considered, pending a DAO vote.