SuiNS Unveils Governance Voting and Rewards Mechanism
Sui Name Service (SuiNS) is advancing its decentralization efforts by placing governance decisions in the hands of the community, according to The Sui Blog. This transition aims to ensure that those who actively participate are rewarded, with significant control over the protocol's major decisions vested in the community.
The NS token is central to this governance model, allowing users to directly influence the platform's future. To sustain high levels of activity, SuiNS has implemented incentives to encourage broad engagement from its community members. Specifically, 5% of the total NS token supply is allocated for governance voting rewards, underscoring SuiNS's commitment to fostering an active and engaged community.
Understanding Governance Proposals and Voting
Major decisions on SuiNS, including changes to contracts and certain disbursements from the DAO protocol treasury, will be subject to community votes. All NS token holders have the power to vote Yes, No, or Abstain on each proposal. Notably, the SuiNS Foundation will abstain from voting initially, ensuring that the community drives the decision-making process.
Voting Requirements
To validate votes and proposals, NS token holders must vote through official channels within the designated voting period. The voting period for each proposal will be clearly defined during its creation. Additionally, a minimum number of participating NS tokens is required to reach quorum for a proposal's outcome to be valid.
Token Locking Increases Voting Power
By default, one NS token equals one governance proposal vote. However, users can increase their voting power by locking their NS tokens for periods ranging from one to twelve months. Each month of locking increases the token's voting power by 10%. For example, a token locked for two months will have a voting power of 1.21.
In a scenario where 50,000 NS tokens are allocated as a reward pool for a governance proposal and the total voting power is 500,000, a user who votes with 100 NS tokens would receive 10 NS tokens as a reward. If the user locks their 100 NS tokens for two months, their voting power increases to 121, earning them an additional 2.1 NS tokens, for a total of 12.1 NS tokens.
This system encourages long-term commitment to the platform and ensures that those aligned with SuiNS's long-term goals are rewarded appropriately.
Embracing a Decentralized Future with SuiNS
SuiNS is setting a new standard for governance on the Sui network by empowering its community through the NS token. With 5% of the token supply dedicated to governance rewards and transparent decision-making processes, SuiNS enables users to drive the platform's evolution.
The community can look forward to the first governance vote this fall, marking the initial step in shaping the future of SuiNS. Stay informed and engaged as SuiNS continues to enhance its decentralized governance model.
For more details, visit the official SuiNS blog.