diff --git a/protobufs/operator/governance.proto b/protobufs/operator/governance.proto
index 132a69f..4ee4ba1 100644
--- a/protobufs/operator/governance.proto
+++ b/protobufs/operator/governance.proto
@@ -14,7 +14,6 @@ message CreateProposalRequest {
   oneof kind {
     ApproveSdkClientPayload         approve_sdk_client          = 1;
     GrantWalletAccessPayload        grant_wallet_access         = 3;
-    ApproveServerUpdatePayload      approve_server_update       = 4;
     ReplaceOperatorPayload          replace_operator            = 5;
     UpdateShamirParametersPayload   update_shamir_parameters    = 6;
     ApprovePersistentGrantPayload   approve_persistent_grant    = 7;
@@ -32,8 +31,6 @@ message UpdateShamirParametersPayload {
   uint32 new_n = 1;
 }
 
-message ApproveServerUpdatePayload {}
-
 message ApproveSdkClientPayload {
   int32 client_id = 1;
 }
diff --git a/server/crates/arbiter-server/src/actors/proposal_manager.rs b/server/crates/arbiter-server/src/actors/proposal_manager.rs
index 8e0f173..fbfa5cb 100644
--- a/server/crates/arbiter-server/src/actors/proposal_manager.rs
+++ b/server/crates/arbiter-server/src/actors/proposal_manager.rs
@@ -38,7 +38,6 @@ pub enum ProposalKind {
         wallet_id: i32,
         client_id: i32,
     },
-    ApproveServerUpdate,
     ReplaceOperator {
         old_operator_id: i32,
         new_pubkey: Vec<u8>,
@@ -67,7 +66,6 @@ impl ProposalKind {
                 buf.extend_from_slice(&client_id.to_be_bytes());
                 buf
             }
-            Self::ApproveServerUpdate => vec![],
             Self::ReplaceOperator {
                 old_operator_id,
                 new_pubkey,
@@ -114,7 +112,6 @@ impl ProposalKind {
                     client_id: i32::from_be_bytes(bytes[4..].try_into().unwrap()),
                 })
             }
-            ProposalKindTag::ApproveServerUpdate => Ok(Self::ApproveServerUpdate),
             ProposalKindTag::ReplaceOperator => {
                 let (id_bytes, rest) = payload
                     .split_first_chunk::<4>()
@@ -692,7 +689,6 @@ impl ProposalManager {
                 wallet_id,
                 client_id,
             } => self.execute_grant_wallet_access(wallet_id, client_id).await,
-            ProposalKind::ApproveServerUpdate => Ok(()),
             ProposalKind::ReplaceOperator {
                 old_operator_id,
                 new_pubkey,
diff --git a/server/crates/arbiter-server/src/grpc/operator/governance.rs b/server/crates/arbiter-server/src/grpc/operator/governance.rs
index 7b8cc48..5346f88 100644
--- a/server/crates/arbiter-server/src/grpc/operator/governance.rs
+++ b/server/crates/arbiter-server/src/grpc/operator/governance.rs
@@ -52,7 +52,6 @@ async fn handle_create(
             wallet_id: p.wallet_id,
             client_id: p.client_id,
         },
-        Some(ProtoKind::ApproveServerUpdate(_)) => ProposalKind::ApproveServerUpdate,
         Some(ProtoKind::ReplaceOperator(p)) => ProposalKind::ReplaceOperator {
             old_operator_id: p.old_operator_id,
             new_pubkey: p.new_pubkey,
diff --git a/server/crates/arbiter-server/tests/governance.rs b/server/crates/arbiter-server/tests/governance.rs
index 75aac57..9b69276 100644
--- a/server/crates/arbiter-server/tests/governance.rs
+++ b/server/crates/arbiter-server/tests/governance.rs
@@ -917,47 +917,6 @@ async fn key_rotation_requires_full_quorum() {
     assert_eq!(cast(op3, &key3).await, VoteOutcome::QuorumApproved);
 }
 
-#[tokio::test]
-async fn approve_server_update_reaches_quorum() {
-    let db = db::create_test_pool().await;
-    let actors = GlobalActors::spawn(db.clone()).await.unwrap();
-    actors
-        .vault
-        .ask(Bootstrap { seal_key: KeyCell::from([0u8; 32]) })
-        .await
-        .unwrap();
-
-    let signing_key = authn::SigningKey::generate();
-    let op_id = register_operator(&db, &signing_key.public_key()).await;
-
-    let proposal_id = actors
-        .proposal_manager
-        .ask(CreateProposal {
-            kind: ProposalKind::ApproveServerUpdate,
-            initiator_id: op_id,
-            ttl_secs: None,
-        })
-        .await
-        .unwrap();
-
-    let msg = make_vote_message(proposal_id, true);
-    let sig = signing_key
-        .sign_message(&msg, SigningContext::GovernanceVote)
-        .unwrap();
-    let outcome = actors
-        .proposal_manager
-        .ask(CastVote {
-            proposal_id,
-            operator_id: op_id,
-            approve: true,
-            signature: sig.to_bytes(),
-        })
-        .await
-        .unwrap();
-
-    assert_eq!(outcome, VoteOutcome::QuorumApproved);
-}
-
 // ─── §3.5 / §3.6 Recovery Operator tests ──────────────────────────────────
 
 #[tokio::test]