Reworking Vote Escrow Mechanics for Deeper Engagement

Introducing Delegation and Snapshot-Based Voting for Enhanced Governance Dynamics

Lynex has taken a significant stride in redefining its vote escrow (ve) system to better accommodate one of its standout features: the ability to delegate votes to a manager. This innovation, a departure from traditional ve systems, necessitates a closer look at how Lynex has reworked its vote escrow contract to support this advanced functionality. Let’s delve into how this reimagined approach is reshaping participation in Lynex.

In the early R&D phase of Lynex, we pinpointed several critical areas ripe for enhancement. Our focus centered on addressing challenges such as:

• The repetitive nature of weekly voting tasks.
• Users employing strategies to maximize rewards, which often resulted in significant time investment and increased gas fees.

Our solution? The ‘Delegate to a Manager’ feature, adding a layer of automation and democracy to voting by allowing you to delegate your votes to our pre-selected managers. To integrate this innovative feature, we’ve undertaken a comprehensive overhaul of our delegation contracts, significantly altering the mechanics familiar to many DeFi users.

Enhanced Account-Based Delegation

Our comprehensive revamp of the vote escrow mechanics has culminated in a stronger, account-centric delegation system that:

• Streamlines the voting procedure for users by aggregating voting power into a unified account, facilitating smoother delegation.
• Enhances governance accessibility, aligning more closely with the community’s goals.

Delegating Votes to a Manager

Our delegation to a manager feature is a key enhancement enabled by our revised vote escrow mechanics. This improvement permits veLYNX holders to delegate their voting power to a manager, who is then empowered to strategize and vote on their behalf. This system is especially advantageous for individuals seeking a ‘set-and-forget’ approach to weekly voting, allowing them to remain engaged and benefit from rewards distributed through weekly gauges. The system offers

• Simplicity and Efficiency: This innovative feature removes the hassle of weekly vote planning and execution, saving on gas fees and streamlining the governance process for our users.
• Strategic Voting with Professional Oversight: Delegating to a manager allows veLYNX holders to leverage expert strategies for their voting power, ensuring their contribution is impactful and aligned with their investment goals.
• Flexible and User-centric Approach: Users can select from a curated list of managers, each offering unique strategies for optimizing returns. This choice empowers users to align their voting power with their preferences, all without any associated fees.

Our initial lineup of vote managers, including Gamma, ICHI, and Lynex’s own team, introduces a dynamic new element to DeFi voting. As we expand our roster of managers, we anticipate creating a competitive environment where managers strive to offer the most effective strategies to attract and retain delegators. This competition is expected to drive higher performance and efficiency across the board, benefiting Lynex and its community by fostering a more engaging, rewarding, and democratically governed ecosystem.

Snapshot-Based Voting System

Our voting mechanics now incorporate a significant update: the transition to a snapshot-based voting system. This approach operates as follows:

• Initial Snapshot: At the commencement of each epoch, the veLYNX voting power allocated to each account is recorded and secured. This procedure establishes a consistent voting framework for the duration of that epoch.
• Stability and Predictability: The primary advantage of this system is the assurance that voting power is fixed from the start to the end of each epoch. This means that regardless of any increases in voting power or the addition of new delegations during the epoch, the initial conditions remain constant, preventing any mid-epoch influence on voting outcomes.
• Strategic Implications: The fixed nature of voting power within each epoch necessitates a proactive and strategic approach to participation. Voters must plan their actions and adjustments ahead of the epoch’s commencement, as changes made during an epoch will not impact the ongoing voting process.

This system introduces a one-epoch delay for engaging in the voting process, ensuring fairness and equal treatment for all participants. It underscores the importance of timely compounding your rewards in veLYNX before the epoch transitions, enabling you to retain or enhance your voting power for the next epoch.

Securing veLYNX before the epoch snapshot grants users instant access to their new voting power for the current epoch’s pools/gauges. Plus, they can delegate their votes for the upcoming week to a manager right away. This dual functionality is made possible because the system requires managers to have votes that are already locked in for utilization.

Additional Considerations for Our Community

• Fixed Voting Power for Future Planning: The snapshot system means that any alterations in voting power or new delegations are recognized and become effective only at the commencement of subsequent epochs. This delay ensures that all participants have a clear understanding of their voting capacity and can plan their strategies accordingly.
• The Importance of Strategic Planning: Given the system’s design, effective participation in the voting process demands foresight and strategic planning. By anticipating the need for adjustments before an epoch begins, community members can ensure that their voting intentions are realized, maximizing their impact on the governance of the protocol.

This enhancement to our voting mechanics is designed to enhance the governance process, providing a more stable, predictable, and fair system for all participants.

In Conclusion

Lynex’s revamp of its vote escrow contract to facilitate vote delegation marks a transformative moment in Lynex governance. By adopting account-based delegation and a snapshot-based voting system, we’re setting a new standard for democratic, inclusive governance system.

Website: lynex.fi
Twitter: https://twitter.com/LynexFi
Discord: https://discord.gg/wNsjGx7x
Telegram: https://t.me/lynexfi