Governance

Introduction

GnoSwap is a decentralized protocol governed by xGNS holders. Anyone can participate in the decision-making process in Gnoswap by staking $GNS tokens to obtain xGNS, which enables its holders to create or vote on proposals. The voting system regards 1 xGNS as 1 vote.

The core governance realms are available on GitHub for any project to customize and implement to their project.

Proposal Life Cycle

1. Stake & Delegate $GNS Tokens

To participate in the GnoSwap Governance, you must first obtain xGNS by staking your $GNS tokens. To stake your tokens, visit the Governance menu. You will receive 1 xGNS for 1 $GNS staked.

While you stake your tokens, you must delegate your voting power to an address. You may delegate to yourself, or any public delegates that you support. Delegation only transfers your voting powers, while ensuring you retain all of your rewards. You may select multiple delegates to split your voting power.

Unstaking Period

A lock-up period of 7 days is applied once you unstake your xGNS. During this period, the locked xGNS tokens will be ineligible to receive staking rewards and have no voting powers. This mechanism exists to ensure that xGNS stakers are aligned with the long-term benefits of the GnoSwap protocol.

2. Create a Proposal

A proposal refers to a request for permission to execute a set of calls that will affect the configurations of GnoSwap's realms. To create a proposal, visit the Governance menu. Be sure to concisely describe your proposal and select the correct parameters and values to modify.

Proposal Topic Examples

Below is a non-exhaustive list of parameters that can be changed with a proposal:

  • Protocol Fee: The percentage of the Protocol Fee taken from swaps, withdrawals, and unstaking.

  • Emission Direction: The pools to be included in the $GNS token emission.

  • Voting Period: The duration of the voting period.

  • Vote Quorum: The threshold of the percentage of total voting power required to cause the proposal to become valid.

3. Vote

Once the proposal is created, it enters a voting period after the Voting Start Delay has passed. All delegates are given the option to either vote Yes or No. At the end of the voting period, all votes are consolidated and the results are determined. A proposal only passes if 50% or more of the voting power has voted Yes AND the Quorum has been reached.

Canceling a Proposal

During the Voting Start Delay of 1 day, the proposer may cancel the proposal if an error is detected. A proposal may only be canceled before the voting period begins. There are no penalties for canceling a proposal.

4. Execute a Proposal

If a proposal passes, it can be executed within the Execution Window of 30 days. The execute function must be called for the changes proposed to take effect on the realms.

Configuration Parameters

Below are the initial configuration parameters of the GnoSwap governance. All of the parameters can be modified via proposals.

  • Voting Start Delay: 1 day (= 86400 seconds)

  • Voting Period: 7 days (= 604800 seconds)

  • Voting Weight Smoothing Duration: 1 day (= 86400 seconds)

  • Quorum: 50% of the total supply of xGNS tokens (with 6 decimals)

  • Proposal Creation Threshold: 1,000 GNS (with 6 decimals)

  • Execution Delay: 1 day (= 86400 seconds)

  • Execution Window: 30 days (= 2592000 seconds)

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