A nice evening to all of our readers and followers!
We’re glad to be able to share the next piece of our token ecosystem with you. Today we will discuss the importance of governance in decentralized finance and what are our plans with it.
As many of you already know, we’ve already launched staking on our platform at launch and so far it has been going great. We’ve already introduced our users to the principle of our governance token $POPULI. Now, we’ll present it to a wider audience in this article.
Our goal is to create such a community governance model where any member of the ecosystem will be able to have an equal voice in the development of the project. We’ll be developing a voting mechanism that will use the same principle as quadratic voting power, but with a twist. We want that even a small participant can can make a change or proposal in the system.
🔑 HOW WILL OUR GOVERNANCE TOKEN WORK?
Users can become a part of our governance model by depositing their $VOX tokens into the staking pool on our platform. Upon deposit, a 1:1 amount of $POPULI tokens will be transferred to the user. As long as the user remains inside of the staking pool, he will be able to keep his $POPULI tokens.
When the same user will want to withdraw $VOX tokens from the staking pool, the appropriate amount of $POPULI tokens will need to be available on his balance, so that the governance tokens may be burned in the amount of $VOX withdrawn.
This mechanism allows us to always have exactly the same amount of governance tokens in circulation as there is staked $VOX in the staking pool. It will be the user’s responsibility to take care of his governance tokens and to not transfer/lose them. Doing so might permanently remove his ability to withdraw his staked tokens.
🗣️ WHAT IS THE BENEFIT OF $POPULI TOKENS?
By receiving our governance tokens you will be able to partake in a variety of exclusive platform features that will only be available to the members of the governance system, namely the individuals staking their $VOX tokens.
We’ve designed our governance model around three main features:
1. PRIVATE STAKING POOLS
The first incentive for $POPULI holders is monetary — members of the governance system will be able to stake their $POPULI tokens into exclusive, private staking pools that will be separated from those available to the public. This pools will pay out tokens from other projects or rewards that the system has generated from yield-farming and later from vault strategies.
The amount of rewards gained will be proportional to the amount of $POPULI deposited in the pools, but the allocation will be a little skewed in favour of smaller stakeholders — just so the pools provide incentive for everyone, not just the biggest players.
We plan to co-operate with other projects from the decentralized finance sphere to distribute different community tokens to members of our exclusive staking platform, so that the global audience of both projects can grow.
2. VOTING RIGHTS
The second benefit of $POPULI holders will be voting rights. Governance token holders will be able to signal their support or opposition for VIPs (VOX Improvement Proposals). To support smaller stakeholder and to incentivize all governance members to vote, we will be employing the use of a quadratic voting function that we will expand with an additional factor that will skew the function relatively in benefit of smaller holders.
Proposals that will be supported by the majority of votes and that will pass a minimum quorum of votes will be carried out on the underlying smart contracts.
3. ACCESS TO GOVERNANCE FORUM
The third benefit of $POPULI holders will be an exclusive right to join the governance forum. The governance platform will be a fully-featured discussion board, where all stakeholders of governance tokens will be able to share, create, discuss and propose changes to the protocol.
Each action (such as creating a new topic) will require a user to hold a certain amount of $POPULI governance points. Detailed information about the calculation and distribution of points will be available prior to product launch.
Along with the ability to discuss on early proposal discussions and the ability to actually create change in the underlying protocol, top community contributors and most active voters will be rewarded with small amounts of $VOX from the community fund. This way we’re giving both power and value to our cherished members for their help in creating the financial platform of the future.
This way we will create a fully independent and decentralized platform for the growth and governance of the $VOX ecosystem.
NOTE: Participating in private staking pools will not strip the stakeholder of voting rights or his governance points.
📚 SUMMARY OF GOVERNANCE MODEL
To conclude our discussion on the matter of governance, we’d like to summarize what makes the $POPULI model different from that of it’s competitors and why you should be excited to be a part of it.
The $POPULI governance token is unique in the sense that it is not only a voting token. With our governance token you will be able to earn rewards from exclusive staking pools in the form of tokens from other projects, as well as $VOX tokens for being an active and dedicated member of the governance forum.
We’re also not only focusing on creating a simple voting platform, but a fully-featured and rich governance forum, where real discussions between governance stakeholders will take place. We’re quite proud of our initial concept and we hope it also sparks an interest in you.
As always, we’d be more than happy to discuss it with each member of our community on our social media channels. We’re striving to be an active project with a clear focus on community engagement.
Come join us on the path to building a governance system where the voice of each individual can make a change in the system.