How to Vote for Proposals?

  • How to Vote for Proposals?

    Proposals are only open to voting by stakeholders if the proposal has secured the minimum deposit requirement during the Deposit Phase, and have successfully entered the Voting Phase. At any stage prior to the Voting Phase, no voting can occur. The voting period lasts for 2 days, after which voting is closed. All votes are then tallied before the results are released.

    How is your voting power determined?

    Everyone who has delegated their SWTH tokens to validator pools have the right to vote on proposals. Your voting power is determined by the number of SWTH you have staked. The bigger your stake, the bigger the influence of your vote in a proposal. SWTH you own but do not stake cannot be used to vote and do not constitute to your voting power!

    For example, let’s say Bob delegated 1000 SWTH to Validator A. This amount signifies Bob’s “voting power”. Let's say Validator A has self-staked 9,000 SWTH. This means that by default, Validator A will have the 10,000 SWTH in voting power which includes the 1000 SWTH Bob delegated.

    Scenario 1

    Bob decides not to vote on a proposal. The validator votes "Yes" with his operator key.

    The validator’s voting power is 10,000 SWTH and there will therefore be 10,000 SWTH of voting power voting as "Yes"

    Scenario 2

    Bob decides to vote "No" on a proposal. The validator votes "Yes" with his operator key.

    In this case, Bob exercising his vote overrides the validator’s vote. Hence, the validator’s voting power in this instance becomes 9,000 SWTH (10,000 SWTH - Bob’s 1,000 SWTH).

    Hence, if and only if Bob does not vote, he is allowing his validator to vote on his behalf as a proxy.

    View the Proposal

    Find the proposal under the “Governance” tab in Switcheo Tradescan or some other chain explorer such as Neoeconomy.

    The proposal can be found in the “Proposals in the Voting Period” section.

    Example Proposals
    Please note that proposals listed in the image above are just examples!

    Discuss with the community

    Before casting your vote, it is important to read and understand the contents of any proposal you are voting for. Once a vote is cast, it is implemented onto the blockchain (Carbon) and this action is irreversible. Therefore, we encourage you to participate in discussions with the community to gain a deeper understanding of the proposal before making your decision.

    Step 1: Log in to Carbon Governance Forum to participate in proposal discussion

    Locate the proposal of interest and participate in the conversation by posting your thoughts and views, considering what other community members have already discussed about the proposal.

    Step 2: Go to our official Discord and engage in discussions with the community in the #discuss channel under the “Governance” category.

    Cast your vote

    Once you have understood the proposal and its impacts on Carbon, you are now ready to cast your vote.

    Step 1: Return to the proposal on Switcheo Tradescan and click on “Vote”

    *the proposal in the image is an example proposal

    Step 2: Select voting option.

    You can choose ONE of the following options when voting on a proposal;

    • Yes
    • No
    • No With Veto
    • Abstain

    If you vote “Abstain”, you choose not to vote yes or no on the proposal but accept the outcome of the proposal.

    “No With Veto” should only be used if you strongly oppose a proposal. This vote will cause the proposal to be rejected if it meets the minimum threshold of 33.4% of the votes cast, even if the proposal received a majority “Yes” (>50%). Furthermore, the proposer (or everyone who deposited to initialize the proposal) will lose their deposit!

    For example, if 60% of the voters voted “Yes” on a proposal but 35% of voters voted with "No With Veto", the proposal will be rejected. Everyone who made a deposit for this proposal will not get their SWTH back. Instead, the deposit will be burnt. Therefore, this vote should only be exercised if you strongly feel it would have adverse effects on Carbon features and products, or the proposal constitutes spam.

    ❗Note that not voting does not mean that your voting power will not be counted:

    If you choose not to vote, or miss voting on a proposal, the tokens you delegate to your validator may be used by the operator to vote on your behalf as a proxy.

    Voting Results

    The voting results will be released after the 2 day voting period, and recorded on the blockchain. Proposals that have been passed will be automatically implemented on the blockchain. Therefore, stakers participating in governance should carefully consider the proposals before casting their votes.

    In order for a proposal to pass, it must satisfy all of the following 3 criteria:

    • Quorum: More than 33.4% of total staking power voted on a proposal.

      For example, if the total staked SWTH is 600 million and a proposal receives votes from less than 200.4 million staked SWTH. The proposal will be rejected. Deposit is burnt.

    • Threshold: At least 50% of voters vote “Yes” on a proposal

    • Veto: Less than 33.4% of voters vote “NoWithVeto”

    Examples of circumstances in which a proposal is rejected.

    Scenario 1

    Quorum: Less than 33.4% staking power voted
    Threshold: More than 50% voted “Yes”
    Veto: Less than 33.4% voted “NoWithVeto”
    Result: Rejected, deposit burnt
    Reason: Did not meet quorum requirements.

    Scenario 2

    Quorum: More than 33.4% staking power voted
    Threshold: Less than 50% voted “Yes”
    Veto: Less than 33.4% voted “NoWithVeto”
    Result: Rejected, deposit returned
    Reason: Did not meet threshold requirements

    Senario 3

    Quorum: More than 33.4% staking power voted
    Threshold: More than 50% voted “Yes”
    Veto: More than 33.4% voted “NoWithVeto”
    Result: Rejected, deposit burnt
    Reason: The vote was vetoed. Even though the majority voted yes, the proposal is rejected.

    Check out How to Create and Submit Proposals? to learn more how to create governance proposals yourself.

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