How to participate in ION DAO governance?
- You must stake your $ION prior to a proposal going on-chain to be eligible to vote.
- There is no minimum amount required to vote. Any amount of staked $ION will be eligible to vote.
GM to Cosmonauts and all pIONeers from other planets!
Today, we will provide a guide to ION DAO governance workflow before launching $IBCX, the first index token in Cosmos.
What is ION?
ION is the secondary native token on the Osmosis chain. It was used in the testing phase of Osmosis and slipped into the mainnet genesis file, becoming a native token of Osmosis along with $OSMO. It has a limited supply of 21,294 IONs and the community brainstormed the use cases for ION, but it was just considered a meme coin. Although there was an experiment to utilize ION for an algorithmically stable synthetics protocol, the interest in the project faded as Terra fell down.
ION 3.0: New use case for $ION
Recently, a proposal on ION 3.0 suggested a fully collateralized Cosmos index token project along with a dollar-pegged, over-collateralized stablecoin. As the Cosmos ecosystem is composed of diverse appchain tokens with each unique functionalities, an index token for better diversification and accessibility could bring new benefits to the ecosystem.
How can I participate in ION DAO governance?
1. Simple version for Cosmonauts
- Get $ION on Osmosis
2. Go to ION DAO website, and you can see Stake and Governance
4. Stake your ION first
5. Vote on the activated proposal on Governance tab
2. For Cosmos beginners
- Get $ATOM on an exchange (like Binance, Coinbase, etc)
- Install Keplr wallet and send $ATOM to your Cosmos address without adding any “ATOM Memo”
3. Send $ATOM to your Osmosis address on Keplr
4. Use Osmosis to exchange your $ATOM for $ION
🧿Good To Know
- No minimal staking is required to vote, which means you can vote on proposals with 0.00001 ION
- The voting power will be proportional to your number of ION.
- Unstaking period is 14 days
- There are 4 options for voting — YES / NO / ABSTAIN / VETO
- If you have Metamask, you can bridge your Ethereum Assets directly through Axelar Satellite
Want to make an on-chain proposal on ION DAO?
- Make sure that you have 0.05 ION in your Osmosis address — 0.05 ION is the minimum deposit to make a proposal
2. Connect your wallet and make a proposal on the Governance tab
3. Fill out the details
4. Submit the proposal — Note that a deposit of 0.05 ION is required
5. You just submitted a new proposal
- Who can submit the proposals? -> Anyone with at least 0.05 ION
- Wondering about the status period
- Besides the initial deposit, 0.45 more ION has to be deposited to open a proposal.
- There are 14 days of Pending period to raise the deposit of 0.5 ION.
- Once your proposal obtains an adequate deposit(0.5 ION), voting will be activated immediately. The voting period will end 7 days after the moment your proposal reaches the required deposit(0.5 ION).
3. Which requirements should be fulfilled for proposals to pass?
- Quorum 50% — There must be 50% or more participation among the whole voting power
- Threshold 50% — There must be 50% or more Yes, excluding Abstain
4. Can I get the deposits back even if proposals fail to pass?
- You also can deposit more ION to the proposal you made, in case you want.
- If you fail to collect 0.5 ION to make your proposal open, you will get your initial deposit(0.05 ION) back.
- For the proposal to be passed, 50% of the voting power must participate in the governance. If it’s lower than 50%, the proposal will be rejected, and the deposit of 0.5 ION will be returned.
- If your proposal gets 30% or more Veto, the deposit will go to the ION DAO treasury instead of returning to the people who raised the deposit, even though 50% of the voting power participates in the governance.
5. What if the deposit goes beyond 0.5 ION?
- It’s impossible because the maximum amount of available deposits will differ by the deposit status. If someone deposits 0.1 ION while you are trying to deposit 0.45 ION to make it 0.5, your transaction will fail, and the maximum amount that you can deposit will be 0.35 ION.
6. What is voting power?
- Voting power is calculated by the staking amount of the moment when the proposal is submitted.
- People who stake ION after proposals are submitted will not be qualified for voting. People who are in an unstaking period will also not be able to vote. So, stake ION in advance if you want to vote on on-chain proposals.
The above image is the status of ION on Oct 26th, 2022. In the image, the total voting power is the same as the total staked ION(840.759).
It means that 50%(420.379) of total voting power must participate in the governance to pass the proposal (Quorum). In addition, 50%(210.2935) of total voting power must vote Yes(Threshold). Otherwise, the proposal will not be able to pass.
Then what if there are 50% Yes, and 50% Veto at the same time?
In this case, the proposal will be rejected because the Veto has the highest priority. In another case, if there are 50% Yes, and 29.99% Veto, the proposal will be passed.