> For the complete documentation index, see [llms.txt](https://docs.ax11.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ax11.org/price-data-structure/adaptive-alc-and-governance-driven-adjustments.md).

# Adaptive ALC & Governance-Driven Adjustments

#### 1. **Adaptive Precision Mechanism**

* **ALC Formula**:
  * Precision is governed by a power-based structure:
    * **Square (Pmax)**: Determines maximum precision.
    * **Square root (Pmin)**: Ensures minimum precision.
* **Time Adjustments**:
  * ALC precision adapts dynamically based on block time or governance proposals.

#### 2. **Governance-Driven Adjustments**

* **Voting Mechanism**:
  * Changes to time intervals or ALC parameters require a governance vote, allowing the community to decide:
    * **Faster ALC**: Reduces block intervals for quicker adjustments.
    * **Slower ALC**: Increases block intervals for higher stability.
    *