O(1) Labs is excited to share its official policy relating to delegation of its MINA tokens. Mina block producers who would like to be considered for O(1) Labs’ delegation starting from the first re-delegation period of Mina’s mainnet should apply by completing this form.
O(1) Labs has actively consulted with the Mina Foundation and has decided to mirror the terms of the Mina Foundation’s delegation policy. As stated in the policy, the board of O(1) Labs reserves the right to grant waivers or variances to any of the requirements set forth in the policy in its sole discretion.
Readers interested in the amount of MINA tokens subject to this policy can refer to the Mina Token Distribution and Supply post.
O(1) Labs Delegation Policy
O(1) Labs is committed to decentralizing the governance of the Mina Protocol following mainnet launch. Upon the launch of mainnet, the combined aggregate voting power that O(1) Labs and its affiliates are expected to control is estimated to be about 28% of the total vote outstanding. This represents tokens that O(1) Labs as a company would control, tokens distributable to the Founders of O(1) Labs (other than such an amount that is locked up for 6 months after the launch of mainnet, which represents approximately 1% of the total token supply) and unvested employee tokens, but does not include vested employee tokens (collectively, “O(1) Labs Voting Amount”). To prevent O(1) Labs from influencing or participating in the governance of the Mina Protocol, or to otherwise materially affect the governance of the Protocol in any way, O(1) Labs hereby adopts the following policy (“Policy”):
1) O(1) Labs shall not knowingly seek to direct, influence, interfere, undermine or otherwise control the decentralized governance of the Mina Protocol in any way. This includes not reversing any decisions made by the decentralized community of token holders, unilaterally imposing any changes without support from the community, or coordinating or colluding with other members of the community to materially affect governance.
2) O(1) Labs shall, until the occurrence of the Termination Event (defined below), relinquish its ability to participate in the on-chain governance mechanism of the Mina Protocol by delegating its voting power of O(1) Labs Voting Amount to members of the community, as follows:
a) O(1) Labs shall pick up to 120 external validators which receive the highest Performance Scores. “Performance Scores” will be based on a participating validator’s total uptime and the number of blocks produced. A leaderboard showing Performance Scores of the selected validators will be published.
b) Once the list of validators is finalized, O(1) Labs shall delegate O(1) Labs Voting Amount to the selected delegators on a pro rata basis after the launch of mainnet. O(1) Labs shall earn any staking rewards associated with such delegation; however, each selected validator will be allowed to keep 5% staking rewards. All voting rights associated with such delegation shall be exercisable by such validators, and O(1) Labs shall have no control over, and shall not seek to direct, influence or interfere with their voting.
c) Once every quarter, or more frequently as determined by O(1) Labs, O(1) Labs will review the list of validators to determine whether un-/re-delegation is appropriate with respect to any particular validator, taking into account the following exclusive factors:
- updated Performance Scores, provided that any un-/re-delegation determination shall not include the number of blocks produced;
- whether a particular validator exercises more than 8% of voting power;
- whether a particular validator resides in the “old” chain (i.e., chain with less blocks produced) in the event a hard fork has happened;
- whether any validator did not properly remit back the staking rewards; and
- any regulatory investigation or adverse event affecting such validator’s reputation has occurred.
3) If there should be any change to the list of selected delegators, O(1) Labs will publish the new list within one week after the review process.
4) O(1) Labs shall not delegate to any validators that are operated by investors, employees or other affiliated parties of O(1) Labs .
5) Each participating validator is limited to one wallet address per participant. If multiple participants are working together as a team, that team will be limited to one wallet address.
6) This Policy shall automatically terminate to the extent that O(1) Labs determines that it and its affiliates control less than 10% of the total vote outstanding (“Termination Event”). Nothing in this Policy shall prohibit either O(1) Labs or the Founders of O(1) Labs from transferring, selling or otherwise disposing their respective vested and unlocked tokens to a third party.
7) O(1) Labs shall also create a system through which employees, advisors and consultants of O(1) Labs are penalized for any violation of this Policy with respect to O(1) Labs Voting Amount.
The Board of Directors of O(1) Labs may consider in good faith and grant waivers or variances to any of the requirements set forth herein from time to time.