PRD: On-chain Governance on Scan `Epic`

[ngyingzhong]

Background

On-chain governance (OCG) is a system for managing and implementing changes on DeFiChain. These changes come in the form of proposals (3 proposal types), and are voted by masternode owners.

Proposal types

• Community development fund request proposal (also known as Community Fund Proposal; CFP)
  • Requires simple majority (> 50%) by non-neutral voting masternodes to pass.
  • Fee: 10 DFI per proposal
  • Sample proposal: https://github.com/DeFiCh/dfips/issues/95
• Vote of confidence (also known as DeFiChain Improvement Proposal; DFIP)
  • Proposals concerning the direction of DeFiChain; No fund request
  • Requires super majority (> 66.67%) by non-neutral voting masternodes to pass
  • Fee: 50 DFI per proposal
  • Sample proposal: https://github.com/DeFiCh/dfips/issues/96
• Block reward reallocation proposal
  • Requires super majority (> 66.67%) by non-neutral voting masternodes to pass.
  • Fee: 500 DFI per proposal

Votes

• Yes
• No
• Neutral
  • Neutral votes are not counted
  • No-vote is considered as a neutral vote

Things to note:

• All proposals require at least 1% of voting masternodes of all active masternodes that mined at least 1 block before the finalizing block.
• Voters can change their votes as long as it is within the voting period. The latest vote registered before conclusion of voting period will be considered.
  • (Offical term for conclusion of voting period: voting finalizing block)

OCG stages and timeline

Voting is carried out every 130,000 blocks, roughly once every 1.5 calendar month.

• Stage 1: Proposal submission (deadline will be given for submission)
• Stage 2: Request for Comment (RFC)
  • Duration: ~1 week
  • To allow open discussion among community members.
• Stage 3: Voting
  • Duration: ~1 week
  • Deadline will be given for final vote.

Status of Proposals

1. Voting: Successfully submitted request, currently undergoing voting state
2. Rejected: At voting finalizing block, if a request does not achieve minimum vote requirement
3. Completed: A funding request that has been paid out entirely. When completed payment periods is equals to period requested, request is marked as completed.

An absence of Approved state is intended: Some proposals may ask for e.g. 3 cycles of payment. Even if 2 cycles have been paid out, the proposal can be rejected before its 3rd payout.

Current OCG Process

1. Proposer posts proposal on Github as an issue, within which describes the overview, purpose, benefits and fund allocation proposal.
   1. In the description, a link to the Reddit discussion thread (also created by the proposer) will usually be included — this is more so for CFPs.
2. Discussion takes place between Stage 1 and 2 of the process, mostly on reddit (although a small % of discussions happen on Github thread too)
3. Voting is done via message signing (through CLI)
   1. Once voted, voter will need to post signmessage proof on Github
4. At the closing date, vote count will take place to decide if a proposal rejected

Objectives

• To streamline proposal submission process
• To encourage more high quality proposal submissions to DeFiChain by lowering barrier to submission
• Provide greater transparency to all proposals and their voting process

User Stories

Aim: To shift OCG activities from GitHub to DeFi Scan, starting with displaying submitted proposals, their respective community discussions, and the voting process.

Story	Link to Issue
Users want to submit proposal details via Scan	#678
Users want to view all the proposals submitted in a voting cycle	#677
Guide to OCG	#1102

Other remarks

Not doing:

• Authentication on Scan. Authentication is done on-chain. Scan merely facilitates the process.

References:

• OCG Pinkpaper
• https://www.dashcentral.org/budget
• https://crypto.org/explorer/proposals

[defichain-bot]

@ngyingzhong: Thanks for opening an issue, it is currently awaiting triage.

The triage/accepted label can be added by foundation members by writing /triage accepted in a comment.

Details

I am a bot created to help the [DeFiCh](https://github.com/DeFiCh) developers manage community feedback and contributions. You can check out my [manifest file](https://github.com/DeFiCh/scan/blob/main/.github/governance.yml) to understand my behavior and what I can do. If you want to use this for your project, you can check out the [DeFiCh/oss-governance-bot](https://github.com/DeFiCh/oss-governance-bot) repository.

[defichain-bot]

@ngyingzhong: There are no 'area' labels on this issue. Adding an appropriate label will greatly expedite the process for us. You can add as many area as you see fit. If you are unsure what to do you can ignore this!

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Details

I am a bot created to help the [DeFiCh](https://github.com/DeFiCh) developers manage community feedback and contributions. You can check out my [manifest file](https://github.com/DeFiCh/scan/blob/main/.github/governance.yml) to understand my behavior and what I can do. If you want to use this for your project, you can check out the [DeFiCh/oss-governance-bot](https://github.com/DeFiCh/oss-governance-bot) repository.