> For the complete documentation index, see [llms.txt](https://cvnnt.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cvnnt.gitbook.io/documentation/system-architecture/governance/covenant-verification-model.md).

# Covenant verification model

Covenant is a distributed,open, onchain BTCFi system.

Covenant governance design fully reflects these core Covenant properties.

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Covenant governance is public, any node that meets certain transparent criteria (performance, reputation rate, stake), can participate in Covenant validation.
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Covenant resolves the challenge of combining public consensus that requires scalability optimization, high security requirements, and high responsibility of decentralized governance decisions over high transaction volumes using several requirements and techniques:

* Grouping and group-based mechanics;
* Common coin-based grouping processes;
* "Whales-with-shrimps" grouping principle;
* Group rotation;
* Epoch overlap;
* Witness groups and blind participation (when a node doesn't know if it is in witness group or in main group);
* Decentralized p2p node reputation rating system;
* Master node sufficient reputation rate requirement;
* Sufficient master node stake requirement;
* Master node performance requirements;
* Slashing for proven misbehaviour (whether main or witness group malicious participant in case blind participation, both reputation and stake slashing).