xGNS

What is xGNS

Governance in GnoSwap is powered by xGNS, a non-transferable governance token exclusively issued to users who stake $GNS into a single token staking pool. This staking pool functions as voting-power-escrow contracts for GnoSwap. The issuing ratio for xGNS:$GNS is 1:1, meaning the amount of xGNS a user receives equals the amount of $GNS they stake.

Unstaking Period

A lock-up period of 7 days is triggered once you unstake your xGNS. During this period, the locked xGNS tokens will be ineligible to receive staking rewards and have no voting powers. The unstaking mechanism exists to ensure that the $GNS tokens from which voting power originates are exposed to the full effect of the proposal, adding a layer of "skin in the game".

How to Use xGNS

1. Stake $GNS in the governance staking pool via the GnoSwap Governance Page.

2. Receive xGNS corresponding to the amount of $GNS you staked at a 1:1 ratio.

3. As soon as you receive xGNS, you become eligible to vote in governance and start earning rewards from Protocol Fees.

4. Once you unstake your xGNS, a 7-day lock-up period is applied. During this time, your tokens will become inactive, meaning you can't participate in governance or earn protocol rewards.

5. After the 7-day lock-up period, you can claim the principal $GNS you previously staked via the GnoSwap Governance Page. (You can claim protocol rewards at any time regardless of this lock-up.)

The staking mechanism in GnoSwap is designed to incentivize the $GNS holders with the greatest commitment to the protocol's long-term success by granting them governance power. This enables active participation in voting on proposals and influencing the direction of the GnoSwap protocol.