The Voting Process
All vVSP tokens are eligible to participate in Vesper governance votes. VSP holders can acquire vVSP by depositing their tokens in the vVSP Vault.
Vesper Improvement Proposals (VIPs) are submitted by community members. One function of VIPs will be for adding new, community-built strategies to the platform.
There are two types of votes: on-chain and signal. VIPs can be introduced as a signal or on-chain vote. Initially, most voting will comprise of signal voting through Snapshot.page. Over time, more and more votes will be executed on-chain with executable code, ultimately relinquishing all administrative responsibilities and controls directly to the vVSP holders.
Signal voting through Snapshot.page is a more casual process, with the outcome being executed in good faith of the sentiment of voters. Initially, only whitelisted "core" addresses are permitted to create snapshot proposals.
On snapshot, 1 vVSP = 1 vote. Snapshot requires a block number to poll balances, which will be estimated at three hours prior to the start of the vote. Snapshot votes run for 72 hours in length.
Votes requires at least 30,000 vVSP voting in favor with majority approval to meet quorum and pass. That quorum requirement may increase over time as vVSP supply increases and holders are more accustomed to voting.
Every on-chain Vesper Improvement Proposal must be accompanied by executable code and framed in a Yes/No format. It may include no more than 10 contract actions.
In order for a Vesper Improvement Proposal (VIP) to be brought to an on-chain vote, the proposer must either hold 1% of the vVSP in existence, or get others to delegate their vVSP to reach the 1% necessary.
When a proposal vote is formally initiated, the voting period will begin. The voting period will last for 17,280 blocks, which is roughly 3 days.
In order for a Vesper Improvement Proposal to succeed, it must meet thresholds for quorum and passage:
- 1.For a proposal to reach quorum, 4% of the outstanding vVSP supply must vote 'Yes' on the proposal.
- 2.For a proposal to pass, after reaching quorum, at least 50%+1 of votes cast must vote ‘Yes’ on the proposal, and the 'Yes' votes must total a minimum of 4% of the vVSP supply.
Below are examples of different governance scenarios to further illustrate the process:
- If 5% of the outstanding vVSP supply votes 'Yes', and 6% of the outstanding supply votes 'No' (meaning 11% of the outstanding supply participated), the vote would fail because, while quorum was met, there were more 'No' votes than 'Yes' votes.
- If 4% of the outstanding vVSP supply votes 'Yes', and 3.5% of the outstanding supply votes 'No' (meaning 7.5% of the outstanding supply participated), the vote would pass because quorum was met, and there were more 'Yes' votes than 'No' votes.
- If 3% of the outstanding vVSP supply votes 'Yes', and 2% of the outstanding supply votes 'No' (meaning 5% of the outstanding supply participated), the vote would fail because, while there were more 'Yes' votes than 'No' votes, the quorum requirement of 4% 'Yes' votes was not met.
vVSP tokens can be delegated to another account, lending their voting power to that account.