Simple Summary
Introducing a new governance voting method based on the staking amount and implementation of the Klaytn Square, a governance portal
Abstract
Klaytn introduces a stake-based governance model that provides voting power to governance participants. Currently, one vote per Governance Council(GC) member was cast. The new method will introduce the voting right that will be exercised based on the staking amount with the maximum cap to prevent an entity from making an arbitrary decision. The voting agenda is determined through discussion on the Klaytn Governance Forum, and the topic will be presented and voted on at the newly launched Governance Portal, Klaytn Square. This voting mechanism aims to provide responsibility and obligation of voting to Governance Councils.
Motivation
The new on-chain voting mechanism discloses GC’s opinion transparently through the public forum and the portal, allowing anyone to view the result. Through Klaytn Governance Forum, non-GC members can also participate in the conversation about governance agenda. This change provides more power and influence to GC members who share the same interest and values as that of Klaytn by staking and locking up more KLAYs. Moreover, this method ultimately promotes decentralization.
Specification
Klaytn Governance Forum allows the general public, developers and governance councils to freely propose and discuss on Klaytn governance items. Once Klaytn Square, the governance portal, opens, the on-chain voting will be executed based on the discussion held in this forum.
The foundation will provide 7 days of notice period for voting, providing a time to adjust the staking amount. With the start of the voting, the foundation will announce the list of GC members and their voting power. GC will have 7 days of the voting period.
The Klaytn governance voting system is designed based on the following fundamental premises.
- Klaytn’s major decision-making process should reflect the opinions of as many participants as possible from the ecosystem.
- Participants will be more likely to make a decision that is beneficial to the Klaytn ecosystem if they hold more KLAY. This is based on the premise that the growth of Klaytn’s ecosystem is correlated to the rise in the value of KLAY.
- The governance system should be able to manage the situations in which a particular entity makes an arbitrary decision. This is because the entity may weaken the sustainability of the entire network.
- The act of voting and the gain of voting power is different.
The Governance Council can exercise the right to vote based on the staking amount. Currently, each GC member receives at least 1 voting right regardless of the number of KLAY they hold. Recognizing a tendency that the member with more KLAY makes a decision that benefits the Klaytn ecosystem in the long run, we are granting a higher voting power to members with more KLAY. Yet, to prevent a particular subject from making an arbitrary decision, we are placing a cap on the voting power one can receive.
Therefore, the GC will receive 1 vote per a certain amount of staked KLAY (initial configuration: 5 million KLAY). The maximum number of votes a governance council can own is one less than the total number of governance council members. In other words, [Maximum Voting Power = Total number of GC members - 1]. For example, if there are 35 GC members, one can own a maximum of 34 voting power. The 5M KLAY: 1 vote with cap structure prevents the tragedy of the commons and prevents potential monopolies by limiting the maximum number of votes cast.
Expected Effect
The proposed GC Voting method is expected to produce the following changes:
- All members in Klaytn ecosystem grow together with credibility
- Providing obligation and authority to GC motivates active participation in governance voting activities and the KLAY staking
- Anyone can easily view the proposals and voting status through the governance portal. It encourages holders to participate and give responsibility and authority to GCs.
- The Klaytn network can take a step closer to transparency and decentralized networks.