xVote - XIO Voting Policy

I think it’s time to start discussing one of the most important topics in any community - Voting.

There has been a few interesting discussions on this in the telegram group, but for a more deep dive into subject I’m quite sure it needs to be adressed on the forum for easier navigation rather than the search function on telegram.

How would you like the voting formula to look?

One citizen id = one vote?

Some sort of combination of average tokens x ammount of days x XSI-score = x ammounts of vote(s)?

What should be voted on?

dApps, smart contracts, marketing, startups, exchanges, future initiative programs ?

Who decides what to vote on?

“Public voting” vs board of directors - Pros and cons?

This post should act as a placeholder for deeper discussions on the topic itself and does not contain any personal preferences.

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I completely agree! For example, our current discussion regarding how to proceed:

We have roughly speaking 3 options, so who votes for what? And once the votes are cast, how are they weighted?

We could try to read all the comments (we should do this anyhow) and come to a rough estimate of the community sentiment, but that is not accurate enough. Maybe after this discussion on how to proceed we could take the time to really dig deep into this governance question.

Thank you for starting this here. I also think it’s important.

Some of the discussion on Telegram focused on the following questions:

How voting power will be distributed among citizens. Should it be based on total XIO held, duration of XIO held, XSI score or any combination of these.

Arguments were that If voting power was

  1. based upon holding amount whales could buy any vote to benefit short term (possibly harming long term success of the protocol)
  2. duration XIO was held should be taken into account to avoid short term thinking.
  3. overall XSI score should be applied to have people vote that have a deep understanding of XIO

I think these are all valid points and probably some combination of these would be the way to go.

More important for me would be another question though:

What decisions should be voted on at all? I know there were some suggestions about adjusting interest rates, stake durations or which startups to onboard.

How about having a two step system:

First step: (proposals)

Proposals must be made that can be voted upon. To be able to make a proposal a certain amount of support from XSI-high-scorers would be needed.

Second step: (voting)

If a proposal gets enough backing by XSI-high-scorers it will be put to vote. Voting power will be average XIO amount held over time (the last 90-180 days or something).

I know there are different protocols already that offer governance systems. I’m sure we could find something to build upon.

Another important question would then still be if a decision taken by vote is implemented automatically or if it has to be done by some admin authority.

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I tried to facilitate this by summarizing here:

Still want to put it into two or three paragraphs TL;DR though :wink:

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I saw that, kudos to that :slight_smile:

This is just me thinking about future discussions, lest we rely on you to write a pamphlet every week :smiley:

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Two tiered system could be a way forward, and as you said we need multiple metrics to make it harder to game the system. Especially as it is still a small project.

This gave me an interesting idea. Since I was planning to explore governance in general, I could compile a list of projects and how they solved this issue. Do you have any ideas with which I should start?

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Here are some that come to mind. Some might not fit at all though 🤷

dfohub (BUIDL)

(have a really unique approach which I personally find very interesting)

MANTRA DAO (OM)

https://mantradao.com/

AKRO governance token

https://akropolis.io/
https://delphi.akropolis.io/

PhoenixDAO (PHNX)

Kleros (PNK)

Of course there are multiple master node chains that have governance voting implemented, e.g. SmartCash, PolisPay, PAC, … I have no idea if that is even something to research further. (???) Seems too far off from how XIO works.

2 Likes

I am in favour of a vote system based on total xio staked in the liquidity pools

I am in favour of a vote system based on total xio staked in the liquidity pools

Okay I see - Do I understand it correctly if I interpert your statement as only the ammount of “locked XIO” a citizen have, will generate x ammount of vote(s)/voting power?

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.

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I don’t know if this is helpful… but to me, we can learn from Tezos governance mechanism.

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Sorry I do not have time to really elaborate on this idea yet, but I think the goal of governance is to promote altruism to a degree. I get tokenomics changes things…but, if we are all being honest with ourselves, it is very hard for altruism to develop alongside of capitalism. Altruism and individuality can exist, and I am not remotely talking about collectivism. For you Star Trek fans, we should not be the Borg. However, the most powerful idea I’ve found to promote good governance…is to promote active government with a RANGE of ideas and proposals. We should REWARD those who take an active stake…not flashstake, but a stake in governance. Those who are most active should have their votes weighted, regardless of the amount of XIO they stake or hold. The best chance we have to promote great governance is activity and an wide range of perspectives so the community has many thoughtful choices in our path forward.

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