What is Position Exchange Governance?
Position Exchange Protocol is entirely governed by POSI token-holders, using three main components: The POSI token, Governance module, and Timelock*. Together, these contracts allow the community to propose, vote, and implement changes. Proposals can modify system parameters, support new markets, or add entirely new functionality to the protocol.
POSI token-holders can delegate their voting rights to themselves, or an address of their choice. For the first phase of the governance implementation, only the team will be able to make proposals and submit them to community voting (for now). Another sub-section will be available later for users to create their own proposals. The governance core function is to include all holders in the decision making process concerning the changes major changes related to the protocol and its smart contracts. From now on, any on-chain changes concerning the protocol and the smart contracts would require the votes of the holders.
At a later time, once the sub-section is available for users to create proposals, addresses delegated at least a X POSI can create governance proposals; any address can lock Y POSI to create an Autonomous Proposal, which becomes a governance proposal after being delegated X POSI.
When a governance proposal is created, it enters a certain day review period, after which voting weights are recorded and voting begins. Voting lasts for certain days; if a majority, and at least X votes are cast for the proposal, it is queued in the Timelock*, and can be implemented few days later. In total, any change to the protocol takes a defined amount of time
The process is rather simple: 1. Proposal created - Review - 4 hours 2. Voting active - 24 hours 3. Voting ends - Succeeded or defeated 4.Timelock - Queued for execution - 20 hours Every changes on the contracts will take a total period of 48 hours. Each step will have a pre-defined and fixed number of days. The total process might take a week.
Important notes:
The voting will count the total balance of POSI in the addresses (including the staked tokens)
The governance is a fully on-chain process which serve as a very transparent and clear governing tool and includes all holders in the voting process.
The governance will only serve on-chain changes to the protocol as a first step (Example: Access to the locked Governor contract tokens, etc...).
The community proposal creations will be available in a sub-section soon.
Voting in the governance requires gas-fees as the process happens fully on--chain.
There is no minimum amount of POSI required to proceed to the voting.
The more POSI an address contains the more impactful is its vote (Example: An address with 1000 POSI has more voting impact than address with 10 POSI).
Voters will be able to earn POSI from voting.
*Timelock: Each protocol contract is controlled by the Timelock contract, which can modify system parameters, logic, and contracts in a 'time-delayed, opt-out' upgrade pattern. The Timelock has a hard-coded minimum delay of a certain amount of days, which is the least amount of notice possible for a governance action.
The Timelock contract queues and executes proposals that have passed a Governance vote.
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