Hello Polis Community,
Last week we launched the new Polis Governance comprised by the Agora and Plutus smart contracts, both of which allow the community to vote on important elements of the Polis Protocol. This text will provide a deep look into the governance smart contract usage, explaining the architecture of the governance smart contracts and outlining key considerations to create, vote and judge proposals.
Vote Registration & Delegation
Our new governance supports a protocol we call voting delegation. These means you register your voting power using an address at a given point in time so that your DRACHMA (Staked Polis) are available for voting from that moment into the future.
From the governance portal you can register to vote (delegating your voting power to yourself) or delegate your DRACHMA to another address.
Some things that are worth considering for vote delegation.
- The people you delegate your voting power to will not have access to your coins, they will stay in your wallet.
- If you delegate your power to a third party, you won’t be able to vote, instead the address you delegated your voting rights to will vote for you.
- You can remove delegation to a third party or yourself at any point in time.
- In order to vote, the DRACHMA delegation (either to yourself or a third party), needs to take place at least 1 block before a proposal is created. Votes registered after the creation of a given proposal won’t be able to vote for that proposal.
- Registering your vote always requires interaction with a smart contract, so there’s a small fee (~0.0009 BNB) that needs to be paid to register, as does casting a vote or creating a proposal.
The new governance introduces new terminology for new concepts that it is important the Polis Community gets familiar with.
- Agora: the smart contract governing the community treasury.
- Plutus: the smart contract holding the Polis Protocol parameters.
- Timelocks: a period of time after a proposal has been voted successfully, were funds are approved, but not delivered to the proposal owner and/or the changes are not implemented to the protocol, with the purpose of letting Polis holders react according to the outcome of a voted proposal.
- Voting Power: (DRACHMA) the amount of Staked Polis (DRACHMA) coins a user has, that are registered and ready to vote.
Agora our Community Treasury
The Agora smart contract allows to fund proposals in a similar way the old Polis Blockchain Governance worked. The community is able to create and vote proposals that fund an address, generally the proposal owner’s, so that the owner can carry out projects beneficial to the Polis Protocol Platform.
The main difference to the old system is that proposals cannot be created for multiple periods at creation time, and need to be created on a over demand basis. This means the owner has to manually request more funds once the budget approved has been used, or request enough funds at the beginning for several months.
- The proposal owner owns 0.1% of the staked polis (DRACHMA) supply or has been delegated the equivalent amount by other community members.
- Voting period of ten days, and a timelock of two days.
- Approved funds to a proposal owner can not be recovered by the protocol and would rely on trust and good will shall a proposal fails to meet objectives or deadlines.
- A proposal needs 4% participation (quorum) from the total DRACHMA holders to be valid.
Plutus the Heart of the Polis Protocol
Plutus is a smart contract that handles key parameters and rules that the Polis Protocol is governed by. It is very important to fully understand the implications of the changes to this smart contract as it may have critical impact on the tokenomics for the project.
- Coin rate of emission and fifthing (20% reduction in emission every years).
- Coin distribution for staking, community treasury, liquidity pool providers and others.
- Updates to staking contracts.
- Adding new liquidity pools.
Similarly to the Agora voting parameters, we find the Plutus votings have.
- Require the proposal owner to own1.5% of the staked polis (DRACHMA) supply or has been delegated the equivalent amount by other community members.
- Voting period of three (3) days, and a timelock of two days.
- A proposal needs 35% participation (quorum) from the total DRACHMA holders to be valid.
All proposals will only have two options to vote, yes and no. Once the quorum threshold is met, the outcome will use the Simple Majority principle, and a proposal will be executed if the yes votes account for more votes than the no votes for casted votes.
Once a proposal has been approved, the funds will be delivered and protocol changes will be enforced after the two day timelock period is over.
From this point a community proposal is meant to be carried by the owner according to the initial specifications and the proposal owner is expected to keep the community informed on the proposal development.
What makes a good proposal?
It is also important as a community member and as a proposal owner to educate yourself on how to spot and create good proposals. This is a set of rules of thumb that might help you create, improve or vote a proposal.
- Anonymity removes accountability. Removing anonymity increases trust into your proposal, as the community understands you are accountable to carry it out. Anonymity might not be a deal breaker under the right circumstances (for low budget proposals), but usually anonymity can easily turn into a scam, given the lack of accountability.
- A proposal should be self sustaining, meaning it should be covered by the requested funds, or the creators and involved parties should agree on the funding methods they will use, and communicate them properly to the community as well as handling the involved procedures and conditions for refunding or spending the funds.
- Provide a timeline and spending budget for the funds, evaluate the feasibility of a proposal and set expectations on the deliverables. If a proposal is meant to cover several months of operation, it is easier to approve funding if you request funding month by month, and specify from the beginning you will take this approach, as well as keeping the community informed on your activities and spending.
- Read and ask questions. Clarification is important so that the community is able to make an informed decision on whether to fund a proposal. Discussions can take place on any place that allows you to connect with the community, we recommend the Polis Discord Server and the Polis Forum. As a proposal owner you should be willing to answer every question from the community in the clearest way possible.
- Evaluate and refine your proposal before creating it in the blockchain. Communicating your ideas to the community to get feedback and refine your proposal might help you improve the metrics, spending structure and even goals of a proposal.
The new governance represents a key step into the future of Polis, further decentralizing key aspects of the Protocol and putting them into the hands of the community.
Voting for a Proposal
- Make sure you have your wallet with your DRACHMA selected on your Metamask wallet.
- Go to the governance portal. https://farms.polispay.org/governance
- Select the Register Button.
- Confirm the transaction on your Metamask wallet.
- Once the transaction is confirmed, you will be registered to vote. You may need to refresh the site at this point. The register button should now read “registered”
Once you are registered, you will be able to vote on all proposals created after your registration. In order to vote, you should.
- Select the proper smart contract Plutus (for protocol proposals) and Agora (community funding proposals).
- Select the proposal you are interested in voting. And hit the “vote” button.
- Select vote for to approve a proposal or vote against to vote no.
- Confirm the transaction on your Metamask wallet.
- Refresh the page and click the voted button to verify your vote was carried succesfully.
From everyone in our team we would like to sincerely thank you for your constant support.
If you have any questions, don’t hesitate to ask.
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