On-Chain Proposal
Several of the numbers involved in governance are parameters and can thus be changed by passing a parameter change proposal.
Minimum deposit: 10000000 aSWTR
Maximum deposit period: 2 days
Voting period: 2 days
Quorum: 33.40% of participating voting power
Pass threshold: 50% of participating voting power
Veto threshold: 33.40% of participating voting power
1. Deposit Period
The deposit period lasts either 2 days or until the proposal deposit totals 10000000 aSWTRs, whichever happens first.
Deposits
Prior to a governance proposal entering the voting period (i.e., for the proposal to be voted upon), there must be at least a minimum number of aSWTRs deposited (10000000). Anyone may contribute to this deposit, though it is usually filled by the proposal maker. Deposits of passed and failed proposals are returned to the contributors.
In the past, different people have considered contributions amounts differently. There is some consensus that this should be a personal choice. There is also some consensus that this can be an opportunity for supporters to signal their support by adding to the deposit amount, so a proposer may choose to leave contribution room (i.e., a deposit below 10000000 aSWTRs) so that others may participate. It is important to remember that any contributed aSWTRs are at risk of being burned.
Burned deposits
Deposits are burned only when proposals are vetoed as documented in the Cosmos SDK gov module spec. Deposits are not burned for failing to meet quorum or for being rejected.
What do the voting options mean?
Abstain: The voter wishes to contribute to quorum without voting for or against a proposal.
Yes: Approval of the proposal in its current form.
No: Disapproval of the proposal in its current form.
NoWithVeto: A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Swisstronik, (2) disproportionately infringes on minority interests
Voters are expected to vote 'NoWithVeto' for proposals that are spam, infringe on minority interests. Voting 'NoWithVeto' has no immediate additional financial cost to the voter - you do not directly risk your aSWTRs by using this option.
What determines whether or not a governance proposal passes?
There are four criteria:
Deposit is filled: A minimum deposit of 10000000 aSWTR is required for the proposal to enter the voting period
anyone may contribute to this deposit
the deposit must be reached within 2 days (this is the deposit period)
Quorum is reached: A minimum of 33.40% of the network's total voting power (staked aSWTR) is required to participate
Simple majority of 'Yes' votes: Greater than 50% of the participating voting power must back the 'Yes' vote by the end of the 2-day voting period
Not vetoed: Less than 33.4% of participating voting power must have backed 'NoWithVeto' by the end of the 2-day voting period
Currently, the criteria for submitting and passing/failing all proposal types is the same.
How is quorum determined?
Voting power, whether backing a vote of 'Yes', 'Abstain', 'No', or 'NoWithVeto', counts toward quorum. Quorum is required for the outcome of a governance proposal vote to be considered valid and for deposit contributors to recover their deposit amounts.
How is voting tallied?
Total voting power refers to all staked aSWTR at the end of the 2-day voting period.
Participating voting power refers to only the aSWTR which have been used to cast a vote on a particular proposal. Quorum is set to 33.40% of the participating voting power.
Validators not in the active set can cast a vote, but their voting power (including the backing of their delegators) will not count toward the vote if they are not in the active set when the voting period ends. That means that if aSWTR is delegated to a validator that is jailed, tombstoned, or outside of the active set at the time that the voting period ends, that aSWTR's stake-weight will not count in the vote.
Though a simple majority 'Yes' vote (ie. 50% of participating voting power) is required for a governance proposal vote to pass, a 'NoWithVeto' vote of 33.4% of participating voting power or greater can override this outcome and cause the proposal to fail. This enables a minority group representing greater than 1/3 of participating voting power to fail a proposal that would otherwise pass.
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