Blackpaper information in regards to the voting policy;
While XIO has always been inspired and indirectly managed by the community of Citizens, the xVault moves this governance and responsibility on-chain. This is facilitated and made possible by the introduction of xVote tokens (XVT), a separate ERC token.
Governance | Voting Policy
xVotes allow users to vote on which XIO Policy is implemented. Policy is extremely important as it dictates where newly issued XIO tokens should go and in what proportion.
The Policy with the most xVotes becomes the Primary Policy and immediately adjusts the XIO distribution ratios. For example:
- Policy Proposal One: 50% XLP, 30% XSI, 20% XFO
- Policy Proposal Two: 90% XLP, 10% XSI
- Policy Proposal Three: 96% XFO, 2% XID-63B, 2% XID-35AB
While not finalized, there is currently a voting period of 1000 blocks. This means, the Policy that holds the most locked xVotes at the end of the voting period is made the Primary Policy.
To vote on protocol changes or fund allocations, Citizens lock xVote (XVT) tokens into the protocol updates they want to support called the Policy.
If people want to support a specific Policy, they lock xVotes to support it. If a Policy has the most xVotes, it immediately becomes the “Primary” Policy and takes power of the distribution.
Governance | XPY Match
The XPY match is the percentage of XIO tokens that are issued into the xReserve in addition to XIO that goes to the xVault. How many XIO tokens go to these programs depends on what the XPY Match is set to.
Governance | Earning xVote
Anytime XIO is staked, their tokens are locked in the protocol. When Citizens unstake their XIO, they earn xVotes (XVT). The current formula (not finalized) to calculate the amount of xVotes earned is:
XVT Reward = Stake Duration (xD) * Stake Quantity (xQ)
Governance | How to Vote
If a Citizen wants to change their Vote, they simply unlock their tokens and lock them into another Policy. This can be done at any time for any reason.
Governance | Power Dynamics
The logic for rewarding xVotes at the end of their Stake Duration instead of the beginning is it prevents massive governance sybil attacks or takeovers. For example, a Citizen cannot make a massive stake then immediately gain control of the Policy.
Additionally, as xVotes are earned each and every unstake, this einsures that the Citizens using the protocol for the longest should have greater voting power within the network. It would be to earn a large number of xVotes without being an active Citizen and Staker for a long period of time.
The Protocol | Terminology
XPY: XIO Percentage Yield
A dynamically adjusting XIO issue rate based on stake duration and stake quantity. This formula ensures that as more XIO is staked, the XPY decreases, thus reducing the risk of infinite inflation. In the opposite direction, if less Citizens stake XIO, the XPY increases, thus incentivizing new economic activity.
APY: Annual Yield Percentage. Each portal in XIO protocol has its own independent APY.
Stake Duration: How long user decides to stake
Stake Quantity: How many tokens user decides to stake
xVote: The native governance token for the xVault venture fund
This section of the Blackpaper is not completed yet and will be filled in throughout the week.