As a part of running a Decentralized finance platform, we at VyFinance believe it is essential to allow users to take part in the decision making process of the platform itself. In keeping with this belief, we have built one of the first forms of on-chain governance to be released on the Cardano blockchain. This will allow our users to engage with our platform on a more personal, and individualized basis - as holders of our token will have a voice!
Users will be able to vote on proposals that have been placed on the governance platform. This will include anything from possible parameters for vaults, choice’s on listings, and direction of partnerships. We intend to launch Voting on our platform by the end of March.
Who is allowed to vote?
All holders of VYFI are able to vote on proposals. Users who hold VYFI token either in their wallet, or any on our platform, will have their token’s captured at the time of a snapshot which will be specified beforehand. Each VYFI token equals one vote. All votes will be counted, and the result released on our proposals page.
How to vote
Voting is very simple. When on our proposals page, you select which option you would like to vote for. We generate a transaction, which includes a ballot amount. This ballot amount is then recorded against the vote. As the Cardano blockchain develops, we will be able to implement this with only the cost of the transaction. Each ballot amount will correspond to a different voting option (such as 1.100101ada for yes, 1.100102 for no. The format of the vote is as follows, the first 4 decimals will be the proposal, the last two will be the choice index. Once received, we compare against the snapshot of the vyfi held in the wallet that sent the transaction, and we tally these to give us the result. This means that the voting takes place entirely on-chain.
Are the votes binding?
Yes, we will do our best to incorporate the result of the vote into our system. This is an integral part of Governance, and as our project develops, we aspire to become more of a DAO than just a DeFi platform. The holders allow our project to exist, so the holders should have a say. This is what distinguishes VyFinance, and DeFi in general, from the current banking system. The users are not disenfranchised, but rather, given the power to be involved!
Will users be able to make proposals?
The intention is to allow users to make proposals, but at launch, proposals will be set based on community discussion as well as when decision making is required. There will be some initial votes to outline some basic system direction that we will adopt moving forward. This is one of the first times that on-chain governance has been attempted on Cardano, and we want to ensure it is fully functional before we add complexity.