KLAYswap governance establishes a system for KSP value growth and overall ecosystem growth through KLAYswap DAO, an agreement that operates governance through voting. DAO stakes KSP, obtains voting rights (vKSP), and receives KSP inflation rewards in return for exercising voting rights and participating in governance. Since DAO can earn greater profits from rising KSP value, DAO naturally determines major issues of the protocol based on the basic premise of ecosystem growth through rising KSP value.KLAYswap creates continuous demand for KSP to secure voting rights (vKSP) and induces an increase in KSP staking participation through a governance structure in which KSP value rises and DAO interests are directly linked. This not only forms a stable price support base for KSP, but also forms a virtuous cycle structure that enables KSP to continue to increase its value with governance and DAO activation.
The order of registration and execution of the KLAYswap governance vote is as follows.
1) Registering for voting
Users who wish to register for voting in Clayswap Governance must have at least 0.1% of the total issued vKSPs in the protocol as of the time of voting registration. Voting registrants can select and register one of the types of proposals, and the registration fee is 500 KSP. KSP used for registration costs will be used to fund Buyback & Burn program.
2) Voting period
The vote will be ongoing for a total of three days. After snapshotting the entire wallet at the start of the vote, the number of vKSPs that can participate in the vote for each wallet is determined. Voting rights obtained by staking additional KSP cannot be exercised once the voting begins. You can't change the details of the vote once you exercise your right.
3) The first vote of approval
If the vote satisfies the minimum participation criteria and final approval criteria at the time of completion of the vote, it would be considered that the motion has been carried in the first round, and if the conditions are not met, the vote will be canceled.
(1) Number of exercisable vote
- This is the total number of voting rights issued to the protocol based on snapshots at the time the vote began, indicating the sum of the total number of voting rights allowed to participate in the vote.
(2) Minimum participation criteria.
- Based on the number of voting rights available, it is recognized as a valid vote only when at least the participation rate is above 20%.
(3) The final approval criteria.
- In a case where the total voters are above the minimum participation standard and at least a majority of the total voters agree.
Voting passed in the first round will remain Timelock-ed for a certain period of time. During the Timelock period, a final inspection is conducted to see if there are any problems with the execution of the transaction.
5) Final stage
When the Timelock period ends, the transaction is executed. And as the protocol code is changed, and the voting result is finally reflected.
1) Information on voting registration.
- In order to register for voting, you must fill out a voting proposal.
- Users who wish to register their votes must have at least 0.1% of the total protocol vKSP in their wallets as of the time of registration of votes, and 500 KSP will be used for voting registration (submitted 500 KSP will be used for Buyback & burn fund).
2) Information on voting participation.
- To participate in the vote, you must have a vKSP before voting begins.
- At the point when registered votes are exercised, the number of vKSP is snapshotted in order to identify the exact number of votes. Therefore, the voting rights obtained by staking additional KSPs after the voting began are not reflected.
- You can check the number of your exercisable voting rights (vKSP) by entering each voting detail page on the KLAYswap governance page. As shown in the image, select the “yes” or “no” button on the voting detail page and click the “Vote” button in the transaction pop-up window to complete the voting. You can't change your decision once the vote is completed.
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