$WNT token is a key medium of governance - anyone with active PoS or staked/locked $WNT tokens earns a so-called ‘staking score’ (please refer to ‘Token economy’ chapter for more details), which is used to calculate ‘voting power’ in community governance.
Voting power allows anyone to participate in proposal submissions and voting for them, as a member of Wicrypt DAO. For more details related to Wicrypt DAO model and governance process, please refer to the last chapter of this paper.
Wicrypt network is subjected to so-called ‘hybrid-governance’ model in which every part of Wicrypt business model and organizational setup that can be reasonably decentralized is cascaded to DAO, while other elements, such as ongoing management over back-end of the product, maintenance and external communication is handled by a central, executive body called ‘Managing Team’.
Each $WNT staker is automatically entitled to participate in Wicrypt governance. Voting power of each entitled user is calculated based on the following formula: voting points = staking score.
The DAO proposal can be related to anything that concerns Wicrypt product development and organization setup. For example:
- Min volume threshold entitling or hub uptime required to earn $WNT
- Maximum billing rate host can set.
Submission of proposals requires voting power equal to or higher than the bottom staking score threshold assigned to the 6th staking level. Amount of voting proposals per week that can be submitted starts with 1 and is increased per every staker’s level, until reaching max value of 4 per week for top stakers.
Stakers without sufficient voting power to make a submission on their own can delegate their voting power (for the submission process only) to another wallet. This way multiple smaller stakers can still have their own voice and still make voting proposals.
Delegation of voting power is effective only in relation to making a voting proposal, and can’t be done ‘partially’ - one wallet can delegate 100% voting power to only one other wallet at the same time. Operation can be reverted any time, but users need to wait at least 24 hours before delegating voting power to another wallet.
There are 3 stages related to each governance proposal:
- Proposal submission
- Voting on listing proposal vs instant rejecting it - in 3 days from submission
- General voting on proposal - in 7 days from submission
Following majorities are applicable for the above:
Please note that the majority and quorum of DAO is calculated by voting power, not staker’s headcount.
Wicrypt Governance process