Governance on Cosmos
At Quicksilver, an integral part of our vision is maximizing stakeholder rewards while continuing to secure the chains we onboard. The security and success of any given chain in the Cosmos ecosystem is ensured through decentralized governance.
How does governance work?
To understand how governance works in the Cosmos ecosystem, we can take a look at the Cosmos Hub. To put up a governance proposal on the Cosmos Hub, a minimum deposit of 512 ATOM needs to be met within the 2-week voting period. Once the minimum communal deposit has been reached, ATOM holders are able to vote for the given proposal by saying yes, no, no with a veto, or by abstaining. The weight of a stakeholder’s vote is directly related to the amount of Atoms staked. After the voting period has closed, for a proposal to be accepted, at least 40% of staked tokens need to have participated, 50% need to have voted yes, and less than 33.4% need to have vetoed the proposal.
Proposals in the past have ranged from minor changes of parameters (like inflation, maximum number of validators, etc.) to major upgrades of the Hub (like enabling IBC). There is also a vibrant strategic discussion around ATOM, the Hub, and its future.
Why is governance important?
Governance is important because it controls what any given chain does. Making governance votes distributed among many participants is key to maintaining network integrity: This ensures majority interests are spread among many stakeholders and not just a few.
How we maintain governance
Existing liquid staking models have users transfer their voting rights to a whitelisted set of validators, giving them more proportional power in governance. Quicksilver prevents this through our governance by proxy model. Through this process, we simulate governance proposals on Quicksilver. Stakers can place a vote on this proposal which will then be mirrored on the native chain. This means that, if there is an upcoming proposal on the Cosmos Hub, Quicksilver will put forward the vote to holders of qATOM on the Quicksilver zone. They will cast their ballots, and then Quicksilver will reflect this choice on the Cosmos Hub. Just like in native staking, users that don’t vote will inherit the vote of their signaled validator.
Stay in touch
The initial Quicksilver testnet will be launching end of Q1–2022, followed by incentivized testnet in Q2 —2022. Follow our social channels to stay up to date on our latest news, airdrops, and events.