🏩Voting

Power to the people ✊

Introduction

Many decentralized platforms, projects and protocols decide to open voting and proposals to allow the community to have a say in the development of the platform and the direction of the development team. We here at SwapX believe that the community should always have a hand in the decision making process and so we’re in the process of developing a proposition and voting solution for the protocol.

Technology

In most decentralized voting systems the governance token is used to allocate voting power to different people, where the more token you hold the more power you have to vote with. The vote needs a governance token, but the governance token doesn't need voting as a feature.

Voting Power Calculation

SwapX’s governance token is XWAP, each one gives you voting power based on how much of it you own, as well as a few other conditions:

  • The amount of XWAP tokens in your wallet.

  • The amount of XWAP-LP you own from providing liquidity.

  • The amount of XWAP you have staked in staking once staking functionality is online.

Development

We have two choices to develop a voting solution:

  1. Develop a voting smart contract that allows proposal creation and voting. (classic method) which can be supported in the governance token’s own smart contract.

  2. Utilize a hybrid off-chain-on-chain solution like https://docs.snapshot.org/, this is used by many other DAOs and is a great solution that allows us to provide voting and proposal generation using the transparent and permissionless nature of blockchain with zero gas fees for users.

Conclusion

While the solution is currently in development we’re leaning more towards the latter option due to

  • Its accessibility to anyone who has the required tokens.

  • Zero cost of entry for users (preventing issues such as “poll tax” which may disincentivize voting).

  • Customizability in how voting is done and how proposals are generated unlike the rigidity of Smart Contract based voting.

Stay tuned for updates!

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