> For the complete documentation index, see [llms.txt](https://docs.gnoswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gnoswap.io/core-concepts/governance.md).

# Governance

### How Does GnoSwap Governance Work? <a href="#voting-process" id="voting-process"></a>

GnoSwap governance is powered by xGNS, a non-transferable governance token issued to users who stake $GNS. xGNS holders may create proposals or vote when they meet the relevant governance requirements. The system counts 1 xGNS as 1 vote. You can vote with voting power self-delegated to your address or delegated to you by another address. If you delegate voting power to another address, only that delegatee can vote with it; you cannot cast a separate vote or override the delegatee's vote with that same power.

The core governance realms are available on [GitHub](https://github.com/gnoswap-labs/governance) for any project to customize and implement to their project.

### Proposal Life Cycle <a href="#scope-of-proposals" id="scope-of-proposals"></a>

#### 1. Stake & Delegate $GNS Tokens <a href="#scope-of-proposals" id="scope-of-proposals"></a>

To participate in the GnoSwap Governance, you must first obtain xGNS by staking your $GNS tokens. To stake your tokens, visit the [**Governance**](https://gnoswap.io/governance) menu. You will receive 1 xGNS for 1 $GNS staked.

To assign voting power, delegate it to an address. You can self-delegate, delegate to any address you support, or split your voting power across multiple delegates. Your delegated tokens continue to earn rewards for you. When you delegate voting power to another address, only that delegatee may vote with it; you cannot vote separately with or override that same power, even if the delegatee abstains. Self-delegation lets you vote with that power yourself.

{% hint style="warning" %}
**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.
{% endhint %}

#### 2. Create a Proposal <a href="#scope-of-proposals" id="scope-of-proposals"></a>

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.

{% hint style="info" %}
**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.
  {% endhint %}

#### 3. Vote <a href="#scope-of-proposals" id="scope-of-proposals"></a>

Once the proposal is created, it enters a voting period after the Voting Start Delay has passed. An address can vote `Yes` or `No` with voting power self-delegated to it or delegated to it by others. When power is delegated to another address, only that delegatee may vote with it; the delegator cannot vote separately with or override that same power, even if the delegatee abstains. For each proposal, voting weight is determined from delegation history at proposal creation and the configured smoothing-period anchor. Delegations or redelegations after proposal creation do not immediately add voting power to that existing proposal. At the end of the voting period, all votes are consolidated and the results are determined. A proposal only passes if the Quorum has been reached and the total `Yes` voting power strictly exceeds the total `No` voting power. Tied votes do not pass.

{% hint style="info" %}
**When can I cancel proposals?**

Proposals can only be cancelled during the **Voting Start Delay** period of 1 day (modifiable via GnoSwap Governance), if an error is detected. Once the voting begins, there is no way to cancel the proposal. There are no penalties for canceling a proposal.
{% endhint %}

#### 4. Execute a Proposal <a href="#scope-of-proposals" id="scope-of-proposals"></a>

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 <a href="#scope-of-proposals" id="scope-of-proposals"></a>

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)
  * *The time delay, in seconds, before voting begins after a proposal is created.*
* **Voting Period**: 7 days (= 604800 seconds)
  * *The duration, in seconds, during which votes can be submitted.*
* **Voting Weight Smoothing Duration**: 1 day (= 86400 seconds)
  * *The time period, in seconds, over which the voting weight is averaged for proposal voting and creation/cancellation.*
* **Quorum**: 50% of the total supply of xGNS tokens when a proposal is created (with 6 decimals)
  * *The total number of votes required for the proposal to be considered valid.*
* **Proposal Creation Threshold**: 1,000 xGNS (with 6 decimals)
  * *The minimum holding of xGNS tokens required to create a proposal.*
* **Execution Delay**: 1 day (= 86400 seconds)
  * *The time period, in seconds, that must pass after the voting period ends before the proposal can be executed.*
* **Execution Window**: 30 days (= 2592000 seconds)
  * *The window of time, in seconds, after the execution delay during which the proposal may be executed (any user can execute it).*