The Efinity parachain uses decentralized governance. Anyone may submit a proposal, and EFI holders have the opportunity to vote on proposals and referendums.
Every 2 weeks, votes on proposals and active referendums will be evaluated by the blockchain governance module.
This allows for a minimum of 2 weeks to review proposal submissions followed by 2 weeks of voting.
Votes on existing proposals will either succeed and be incorporated into the chain, or be rejected. An exact tie-vote will be considered negative/failed.
Submitting a Proposal
Each proposal must conform to the Efinity Governance Proposal Standard and must be submitted to the blockchain using a Proposal Submission transaction.
The proposal submitter must bond a minimum of 100,000 EFI to their submission, and the bond may be increased by anyone until votes are tallied. Bonded tokens will be unlocked after four (4) governance periods.
A maximum of 5 proposals can be approved for referendum at any time. Larger bonds will receive priority for referendum. Bonded tokens may not be used to vote.
We encourage posting the submission on the Efinity Proposals Github along with a detailed description and argument to garner support and discussion from the Enjin community before submitting the proposal.
Anyone with the minimum threshold of EFI can use their wallet to enter the proposal ID and submit a “Yea” or “Nay” vote.
Proposal Submission Requirements
- Must conform to the Efinity Governance Proposal Standard
- At least one full governance period must pass before the proposal is accepted (or rejected) for a referendum.
- Proposals must pass a minimum threshold of positive votes (>2% of circulating EFI).
- The proposal submission must receive at least 50% positive votes to pass.
- A minimum of 100,000 EFI must be bonded to the submission.
Voting on Referendums
When a proposal is accepted, a referendum period begins. Eligible wallets will be able to view all accepted proposals during the referendum and place their votes. A small minimum threshold of EFI will be required to place a vote.
Each EFI token is counted as a vote, so 2 accounts voting with 50,000 EFI are equal to 1 account voting with 100,000 EFI.
No EFI staking is required for voting, but all votes are counted during the final referendum block. Each token can only be applied to a single referendum during the tally.
Alice has 100,000 tokens. She may choose to vote on Proposal A with 40,000 tokens, and Proposal B with 60,000 tokens. She won’t have any tokens left to place a vote for Proposal C unless she decreases her previous votes.
Tokens applied to votes remain liquid. If a user spends a portion of their tokens, their votes will be reduced automatically across all proposals.
Types of Governance
Governance proposals can take a few forms:
Privileged functions allow changes to privileged state functions, including transaction fees, marketplace fees, or changing minimum or maximum thresholds and limits.
Code updates involve updates to pallets or the entire code of the parachain.
If an emergency change or hotfix needs to be deployed, the community can enact a priority referendum that requires a large bond of at least 1,000,000 EFI. The priority referendum voting process will begin immediately and allows for a custom voting time period - this can be as low as 72 hours at maximum bond price.
The entire Bonded EFI amount for a Priority Referendum will be lost and distributed to EFI holders if the referendum does not pass.