Full-cycle token governance
In 2022, Waves.Exchange aims to substantially step up decentralized governance. The launch of voting for token verification was a major step in that direction. Now, we are launching two more voting options, which will enable users to govern the entire cycle of a token’s development.
Three months ago, voting for token verification was launched, and users began to put tokens to vote. Now, in addition to creating a pool with verified tokens, they will be able to put the pool to vote for participation in WX emission distribution. Voting will be done in two stages.
Voting for participation in WX emission distribution
For a pool to be entitled to a portion of WX token emission, it has to be approved by the community. To get approval, the pool’s creator has to put it to vote. To be eligible, the pool’s token has to be verified.
If quorum is achieved and the majority of votes has been cast in favor of the pool, it will be able to participate in the second stage, in which the pool’s share in WX emission will be determined. Now, pool investors will be able to collect rewards for staking the pool’s LP tokens (tAPY > 0), which will make the pool more profitable.
The voting procedure is the same as that in voting for token verification:
- get gWX by staking your WX tokens
- go to the voting page
- select a pool for voting
- click on YES or NO to vote with all of your gWX
- the same gWX could be used for voting for different pools
- you can cancel your vote and vote again for or against a pool
- quorum is 30% of total gWX emission (~ 3,000,000 gWX)
- voting lasts for 2 weeks since the pool was put to vote (20,160 blocks)
Based on the vote’s outcome, a pool gets (or doesn’t get) a chance to participate in voting for WX emission distribution. The pool is removed from the WX emission distribution vote if the pool token loses its verified status.
If a pool doesn’t get the majority of votes in its favor, it can be again put to vote for an unlimited number of times, as long as it satisfies the conditions.
Voting for WX emission distribution
At the next stage, users vote for the distribution of the WX emission to determine the pool’s share in WX emission.
All verified pools on the exchange automatically participate in voting. Therefore, there is no need to put a specific pool to vote. The voting procedure is slightly different from that in the other two voting options:
- A vote runs for about 3 months (129,600 blocks). Cast votes are counted in a smart contract. A new vote is launched as soon as the results of the previous one are determined. Cast votes are automatically extended.
- You vote with the amount of gWX you have at the time of the vote’s end.
Your current balance is 1,000 gWX and the WX staking period is ~ 4 years (2,073,600 blocks). You decided to vote for WX emission distribution. The current vote will last for ~ 30 more days (43,200 blocks). Since your gWX balance gradually declines, at the time when the current vote ends, you will have 979.45 gWX.
- You can either vote with all of your gWX for a specific pool or distribute your gWX between several pools.
- WX emission is distributed in proportiona to the number of received votes. Votes for removed pools are not taken into account. gWX participating in voting for those pools are returned to users.
Source code for the voting smart contract, as well as any possible additions and updates, are publicly available, and you can audit the code.
The contract itself can be reviewd in Waves Explorer: https://wavesexplorer.com/address/3PCZbz9o5YfWtK36j3tFcM8E1DUa9d7MyXS/script
Thus, Waves.Exchange offers users the ability to make decisions on adding liquidity to pools. Basically, you can have an impact on the profitability of the pool, to which you provided liquidity by simply voting for it with your gWX.
We’d like to remind you that you can get gWX by staking your WX tokens. In addition to increasing pools’ profitability and participating in votes, staking entitles you to an extra profit of 32%.
With the addition of these two voting options, Waves.Exchange enables users to govern a token’s entire development cycle, from its creation with a couple of clicks to a proper pool featuring that token, with profitability similar to that of the existing pools.
This is a major step in Waves.Exchange’s development, but we have no intention to slow down and will continue to build new decentralized solutions!