# How does EOS governance work?

> Intro for new EOS users

Canonical: https://help.blockzhub.io/articles/how-does-eos-governance-work

On EOS, proposals are formalized on-chain and signed through multi-signature ("MSIG") accounts. Two or more accounts control an MSIG account with different weights and thresholds. The threshold is the number of votes a proposal must receive before it passes.

The weight of an account is how many votes it gets. For example, if there are three accounts on an MSIG, with a weight of 1 and a threshold of 3, then all three accounts must sign. If one of the accounts had a weight of 3, the other two accounts would not need to sign.

One benefit of using EOS is configuring MSIG accounts through a flexible permission system. Any organization can set up an MSIG to move funds and change account settings more securely in a decentralized manner.

The "EOS governance" refers to how BPs make decisions. When moving funds and changing the core code of EOS, block producers must sign an MSIG with a ⅔ + 1 consensus. Because there are 21 active BPs, 15 (the threshold) are needed to sign for the proposal to pass, while each BP has a weight of 1.

Important EOS community decisions are made transparently so token holders can determine whether elected BPs are aligned with the community. For example, in May of 2021, a major hack occurred on EOS, termed the "[SX Vault Hack](https://www.eosgo.io/news/history-was-made-sx-vault-hacked-stolen-funds-seized)." The BPs signed an MSIG to reverse the transaction, allowing the stolen funds to return. Later in the year, the BPs collectively decided to [form and fund the EOS Foundation](https://www.eosgo.io/news/eos-foundation-msig-approved-eos-inflation-increased) through the same process.

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Author: Jesse Jaffe

Editor: Randall Roland/ Dario Cesaro

Translator: -

Sources & References:

* [SX Vault Hack](https://www.eosgo.io/news/history-was-made-sx-vault-hacked-stolen-funds-seized)
* [BP's agree to form and fund the EOS Foundation](https://www.eosgo.io/news/eos-foundation-msig-approved-eos-inflation-increased)