Governance

Governance is a crucial aspect of blockchain, allowing delegators to participate in the decision-making process that shapes the future of the network. This section outlines the governance processes, how to vote, where to view votes, proposal timelines, voting options, and other important information.

Overview

Governance on the ENI blockchain allows delegators to propose, discuss, and vote on changes to the network. This decentralized approach ensures that the community has a say in important decisions, thereby maintaining the integrity of the network and aligning it with the interests of its participants.

Proposal Timeline

The governance process follows a structured timeline to ensure ample discussion and consideration of each proposal.

1. Proposal Submission: Any user can submit a proposal by paying a deposit.

2. Deposit Period: The community has a specific time to deposit funds for the proposal. If the minimum deposit threshold is reached, the proposal will enter the voting period.

3. Voting Period: After the deposit period ends, the proposal enters the voting period, during which voting takes place.

4. Result Period: After the voting period ends, the results are counted and the final outcome determined.

Voting Options

When a proposal enters the voting period, delegators have the following voting options:

• Yes: Agree with the proposal.

• No: Disagree with the proposal.

• No with Veto: Strongly oppose the proposal and request the deposit to be burned.

• Abstain: Choose not to vote in favor of or against the proposal while still participating in the governance process.

Proposal Quorum

To make a proposal valid, a certain quorum must be achieved, which is a minimum percentage of total staked tokens participating in the vote.

Proposal Types

Proposals can range from parameter changes, software upgrades, community spending proposals, to other governance-related matters.

Proposals

Anyone can create governance proposals on ENI. After garnering support and feedback from the community, the proposer drafts and submits the proposal along with the initial deposit.

The most common types of proposals include:

• ParameterChangeProposal: Used to change parameters defined in each module.

• CommunityPoolSpendProposal: Used for spending funds from the community pool.

• TextProposal: Used for addressing other matters, such as significant directional changes or any decisions that require manual implementation.

Voting Process

Community members use their staked ENI to vote. One staked ENI equals one vote. If users do not specify a vote, their vote will default to that of their staked validator. Validators will vote with their full stake unless directed otherwise by their delegators. Therefore, it is crucial for each delegator to vote according to their preferences.

Below is a basic overview of the governance process:

1. Proposal Submission: Users submit a proposal, starting a two-day deposit period.

2. Deposit Period: Users deposit ENI as collateral to support the proposal. This period ends either after the two-day deposit period or when the minimum expedited deposit threshold of 7000 ENI is reached. The deposit is aimed at preventing spam proposals. If the minimum deposit of 3500 ENI is not met, all deposits will be burned, and the proposal will not proceed.

3. Voting Period: A five-day voting period begins. Voting options include:

   • Yes: Support.

   • No: Do not support.

   • NoWithVeto: Do not support, and the deposit should be burned.

   • Abstain: Abstain. Abstain votes count towards the quorum.

4. Tallying Votes: Votes are counted. A proposal passes if three conditions are met:

   • Achieve Quorum: At least 33.4% of all staked ENI must participate in the vote.

   • NoWithVeto votes must be less than 33.4% of the total vote.

   • Achieve Threshold: Yes votes must exceed the combined total of No and NoWithVeto votes. Abstain votes are not counted towards the Threshold.

5. Result Period: If the above conditions are not met, the proposal is rejected.

6. Implementation: Approved proposals will be executed. Once passed, changes described in the governance proposal will automatically come into effect. General proposals, such as approved TextProposal, must be reviewed and manually implemented by the ENI team and community.

7. Deposit Refund/Burn: Depending on the voting results, deposits will either be refunded or burned.

Deposits

The deposit mechanism is used to prevent unnecessary proposals and spam. Users can veto any proposals they consider spam by voting NoWithVeto.

If a proposal fails to reach the minimum deposit amount during the deposit period, it will not enter the voting period, and the deposit will be burned.

Proposals that meet the minimum deposit requirement and enter the voting period will have their deposits refunded for any result other than NoWithVeto. If NoWithVeto votes exceed 33.4% of the total votes, the deposit will be burned. In other cases, the deposit will be refunded.

Additional Information

The governance mechanism of the ENI blockchain empowers the community to actively participate in the development and evolution of the network. By understanding the governance processes and participating in voting, token holders can influence the direction of the network, ensuring it aligns with the community's vision and values.

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Frequently Asked Questions

What happens if my proposal is rejected? If your proposal is rejected and does not meet the minimum deposit threshold, the deposit will be burned. Otherwise, the deposit will be refunded to the proposer.

Can I change my vote during the voting period? No, once you cast your vote, it is final and cannot be changed.