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Governance

Decentralized protocol governance via GNS staking and voting.

Overview

Governance system enables GNS holders to stake for xGNS voting power, create proposals, and vote on protocol changes. For more details, check out docs.

Configuration

The governance.Config type defines the core governance parameters. All values can be modified through governance proposals. This type can be found in the config.gno file.

Field Description Default
VotingStartDelay Delay before voting starts after proposal creation 1 day
VotingPeriod Duration for collecting votes 7 days
VotingWeightSmoothingDuration Period for averaging voting weight (prevents flash loans) 1 day
Quorum Percentage of active xGNS required for proposal passage 50%
ProposalCreationThreshold Minimum GNS balance required to create a proposal 1,000 GNS
ExecutionDelay Waiting period after voting ends before execution 1 day
ExecutionWindow Time window during which an approved proposal can be executed 30 days

Core Mechanics

Staking Flow

1GNS → Stake → xGNS (voting power) → Delegate → Vote
  1. Stake GNS to receive equal xGNS
  2. Delegate voting power (can be self)
  3. Vote on proposals with delegated power
  4. 7-day lockup for undelegation

Proposal Types

  • Text: Signal proposals without execution
  • CommunityPoolSpend: Treasury disbursements
  • ParameterChange: Protocol parameter updates

Proposal Lifecycle

Creation

  • Requires 1,000 GNS balance
  • One active proposal per address
  • Valid type and parameters required

Voting

  • 1 day delay before voting starts
  • 7 days voting period
  • Weight = 24hr average delegation (prevents flash loans)

Execution

A proposal is considered valid and executable when:

  • The voting period has ended
  • Total votes meet the quorum threshold (50% of xGNS total supply)
  • The execution delay period (configured via ExecutionDelay default: 24 hours) has passed after voting ends
  • Within the execution window period (configured via ExecutionWindow default: 30 days)
    • ExecutionDelay and ExecutionWindow are configured through the governance.Config type.
  • Anyone can trigger execution once conditions are met

Technical Details

Vote Weight Calculation

1// 24-hour average prevents manipulation
2snapshot1 = getDelegationAt(proposalTime - 24hr)
3snapshot2 = getDelegationAt(proposalTime)
4voteWeight = (snapshot1 + snapshot2) / 2

Quorum Calculation

1activeXGNS = totalXGNS - launchpadXGNS
2quorumAmount = activeXGNS * quorumPercent / 100  // quorumPercent defaults to 50

The quorum threshold is calculated based on the Quorum percentage (default: 50%) of the active xGNS supply at the time of proposal creation. A proposal passes when either the accumulated YES or NO votes reach or exceed this quorum amount.

Rewards Distribution

xGNS holders earn protocol fees:

1userShare = (userXGNS / totalXGNS) * protocolFees

Usage

 1// Stake GNS for xGNS
 2Delegate(amount, delegateTo)
 3
 4// Create proposal
 5ProposeText(title, description, body)
 6ProposeCommunityPoolSpend(recipient, amount)
 7ProposeParameterChange(params)
 8
 9// Vote on proposal
10Vote(proposalId, true)  // YES
11Vote(proposalId, false) // NO
12
13// Execute after timelock
14Execute(proposalId)
15
16// Undelegate (7-day lockup)
17Undelegate()

Security

  • Flash loan protection via vote smoothing
  • Sybil resistance through stake weighting
  • Timelock prevents rushed execution
  • Single proposal limit per address
  • Dynamic quorum excludes inactive xGNS