Provenance Blockchain provides a governance system through which stakeholders can participate in network decisions. Proposals can be simple statements or initiatives to change network configuration, perform software upgrades, and more.

Voting is the process of assigning active stake to one of four different states for a proposal: yes, no, abstain, or veto. Each actively staked Hash corresponds to one vote. The governance voting process is broken down into three stages: Deposit, Voting, and Tallying results.

Deposit Stage

Anyone can submit a proposal to the Provenance network for stake holders to review. Proposals must meet the minimum required deposit of 50,000 HASH to proceed to the voting stage. A proposal has up to 48 hours to collect enough deposits to become eligible for voting. If the proposal does not achieve quorum or the proposal is vetoed, the deposits are forfeit.

Voting Period

During the 48-hour voting period, validators and delegators may place their votes of Yes, No, Abstain, or No with Veto. When a validator votes, the total of their delegations is applied as weight to their choice. Their individual delegators can accept the vote of the validator they have staked against or explicitly vote their intention, which will take precedence over the validator's vote.

Tallying Results

At the end of the voting period, the cast votes are tallied according to the following thresholds to determine if a proposal passes or not:

Quorum: At least 33.4% of the active state in the network must vote on a proposal for the vote to be considered valid. If quorum is not reached, the proposal fails.

Threshold: Of the votes cast, at least 50% must be Yes votes for the proposal to pass.

No with Veto: If more than 33.4% of the votes are cast as a No with Veto, The measure fails, regardless of if over 50% of the votes were Yes. This last option allows a minority stakeholder to prevent a measure from passing even if the majority endorses it.

If the majority of a proposal vote exceeds quorum and is not vetoed, the proposal is passed at the end of the voting period. Certain proposals such as software upgrades have their effects applied at this time.

Governance Configuration

Current governance configuration parameters can be viewed on the Explorer (see the Gov configuration section).

Governance on Provenance Blockchain

Governance is a vital aspect of Provenance Blockchain, enabling stakeholders to participate in decision-making processes that shape the future of the network. It provides a democratic and transparent way for the community to propose, discuss, and vote on everything from software upgrades to changes in network parameters. This section provides an overview of the governance process, how to vote, proposal timelines, and other essential information.

Overview of the Governance Process

Governance on Provenance Blockchain allows anyone to submit proposals for community consideration. Staked HASH is used to vote on these proposals, ensuring that those with a vested interest in the network's long-term success have a say in its evolution. This decentralized approach maintains the network’s integrity and alignment with the interests of its participants.

The entire process follows a structured timeline to ensure every proposal is given proper consideration.

The Proposal Lifecycle

The governance process is broken down into three distinct stages, from submission to implementation.

Deposit Period (48 Hours) A user submits a proposal along with an initial deposit. The proposal then enters a 48-hour deposit period, during which the community can contribute to the deposit. If the proposal meets the minimum deposit threshold, it moves to the next stage.

Voting Period (48 Hours) Once the deposit is met, a 48-hour voting period begins. During this time, HASH stakers (delegators) and validators can cast their votes on the proposal.

Tallying and Results After the voting period ends, the votes are tallied. If the proposal passes, its changes are automatically implemented (for proposals like parameter changes) or acted upon by the community. Deposits are then either refunded or burned based on the outcome.

Voting Options

When a proposal enters the voting period, stakers have four options. Your vote is weighted by the amount of HASH you have staked.

Yes: You agree with the proposal and vote for its passage.

No: You disagree with the proposal and vote against it.

No with Veto: You strongly disagree with the proposal and believe it is harmful or spam. A sufficient number of "No with Veto" votes can override a "Yes" majority and cause the proposal's deposit to be burned.

Abstain: You choose not to vote for or against the proposal. This still counts your stake towards the required quorum, signaling your participation in the governance process.

The Voting Process in Detail

How to Vote Community members vote with their staked HASH. One staked HASH equals one vote. If you delegate your HASH to a validator and do not cast a vote yourself, your vote will default to the vote of the validator you are staked to. However, you can always vote explicitly with your own stake, which will override your validator's vote. For this reason, it is very important to participate and vote according to your own preferences.

Passing a Proposal At the end of the voting period, the votes are tallied. A proposal passes only if it meets all three of the following conditions:

Quorum is Met: At least 33.4% of the total staked HASH on the network must participate in the vote. If quorum is not reached, the proposal fails, but the deposit is refunded.

Veto Threshold is Not Met: The total number of No with Veto votes must be less than 33.4% of the total vote. If this threshold is exceeded, the proposal is rejected and the deposit is burned, regardless of the "Yes" votes.

Simple Majority is Reached: The number of Yes votes must be greater than 50% of the votes cast (excluding Abstain votes).

Understanding Deposits

Purpose of Deposits Deposits protect the network against spam and ensure that only serious proposals are put to a community-wide vote. The minimum deposit required for a proposal to enter the voting period is 50,000 HASH.

Deposit Refunds and Burns The deposit is a form of collateral that is either refunded or burned (forfeited) based on the outcome of the proposal.

Deposits are REFUNDED if:

The proposal passes.
The proposal fails to pass because it did not reach the 50% "Yes" threshold.
The proposal fails because it did not meet the 33.4% quorum requirement.

Deposits are BURNED if:

The proposal fails to meet the minimum deposit of 50,000 HASH within the 48-hour deposit period.
The proposal is vetoed by more than 33.4% of the participating vote.

Common Questions

What is the minimum deposit required for a proposal? A proposal must collect a total deposit of 50,000 HASH within 48 hours to proceed to the voting stage.

What happens if I don't vote as a delegator? Your vote automatically defaults to the choice made by the validator(s) you are staked with. To ensure your opinion is counted, you should vote directly.

Can I change my vote during the voting period? No. Once your vote is cast on-chain, it is final and cannot be changed.

Where can I view active proposals and current governance parameters? You can view all active and past proposals, as well as the network's current governance configuration, on the Provenance Blockchain Explorer.

Software Upgrade Proposals