Sneak preview: TDROP Governance Portal
TDROP token launched last month with two important features: staking and VIP benefits on the ThetaDrop NFT platform. But perhaps the most important feature is yet to come: using TDROP tokens to vote on the governance of TDROP itself. Soon, TDROP stakers will gain voting rights for proposed changes to TDROP parameters like NFT Liquidity Mining rates. Each user’s voting rights for a given proposal will be equal to their share of staked TDROP as a percentage of the total TDROP staked.
As the voting process progresses and stabilizes, TDROP holders will be responsible for creating new proposals to be voted on. Similar to the governance mechanism of prominent DeFi projects like Compound and Uniswap, TDROP governance voting will be conducted fully on-chain through smart contract calls. These community proposals will also serve as the testbed for community governance features to be implemented on the Theta blockchain itself, to be voted on by holders of the THETA token.
Creating and voting on new proposals will be done through a new governance web interface. Users can draft proposals for a specific change to TDROP parameters, how it should be implemented, and any other information helpful to explain to the community (TDROP stakers) why they should vote for their proposal. Initially, there will be a requirement to have 5 million TDROP staked in order to create a new proposal. This requirement may change going forward depending on how effective it is in facilitating beneficial proposals. Each staked TDROP represents 1 vote. For example, if you stake 500,000 TDROP out of a total 2 billion staked TDROP, you have 500,000 votes out of total possible votes of 2 billion.
To submit your proposal, you can connect your wallet via Metamask and submit it through the interface. Note, you do not necessarily need to move your TDROP tokens to a Metamask wallet to do this. The Theta Wallet will allow you to delegate the proposal and voting power of your staked TDROP to another wallet. This way, if you have your TDROP staked from a secure wallet such as a Ledger or paper wallet, you can delegate to a new Metamask wallet and still vote, while your TDROP tokens remain safely in the original wallet.
Once a proposal is submitted, it can be voted on by TDROP stakers. By default the voting period is set to 100,800 blocks (roughly 7 days). Proposals are passed when they meet both of these conditions:
- They receive more Yes votes than No votes
- They receive at least 500 million Yes votes
TDROP governance will represent an important next step in decentralizing the Theta protocol. In addition to giving the community power over TDROP, it will serve as the testbed for onchain governance of Theta blockchain itself, as the final step in decentralizing Theta blockchain. The target launch for the TDROP governance portal is coming in April, so we are excited to see the first votes happening soon! Further documentation and instructions will be available as we get closer to the release date so stay tuned.