Introducing On-chain Governance: The Implications for Cake DeFi Users
Get ready to have a say in the future of DeFiChain with the introduction of on-chain governance on Cake DeFi. Starting now, all customers with DFI staked in the Freezer will be eligible to vote on DeFiChain Improvement Proposals (DFIPs), not just those with 20k DFI or more. Learn how the new voting process works, the impact on your voting power, and the rewards you can earn for participating in this game-changing move towards decentralized decision-making.
How does the voting process work, and who is eligible?
The voting process for on-chain governance on DeFiChain has been designed to be as simple and straightforward as possible for all eligible customers. There are two rounds of voting, each with their own unique features and requirements.
Special voting round
The first voting round is a special DFIP voting round, which starts on 26 January at 14:00 SGT and ends on 30 January at 18:00 SGT. The proposal to vote for is about reintroducing a part of the burnt DUSD as negative interest rate to increase the utility of DFI. More information about the proposal can be found on the DeFiChain Subreddit. This vote will be held outside of the normal voting cycle and users will have to cast their vote via an online form; the link to this form can be found on the Freezer page. All customers that have DFI staked in the Freezer are eligible to vote in this round. The voting closes 48 hours after the start of the voting round.
Taking part in the voting process takes just a minute. Simply visit the Freezer page and click the link to the Google form. In this form, all you have to provide is your email address, staked DFI, and voting preference.
Normal voting round
The second voting round is the normal voting round, which starts on 10 February and ends on 17 February. Unlike with the special voting round, users can directly cast their vote in the app. This will also be the standard for future voting rounds. To be eligible to vote in this round, customers must have at least 60 days remaining in their staked DFI Freezer allocation at the point of the start of the voting round. The voting closes 7 days before the end of a voting round.
How can you earn rewards for casting your vote?
Participating in the on-chain governance voting process on DeFiChain not only allows customers to have a say in the future direction of the blockchain, but also provides an opportunity to earn rewards. These rewards come in the form of DFI, the native token of DeFiChain, and are paid out to voters from fees that are contributed by proposers.
Voters will be rewarded with DFI from fees that proposers submit when submitting a proposal. 50% of those fees go to voters. The fees are as follows:
- For special DFIPs: 5,000 DFI
- For DFIP: 50 DFI per proposal
- For CFP: either 1% of requested amount or 10 DFI (whichever is larger)
The eligibility criteria for rewards in the special DFIP voting round is simple: anyone who voted is eligible. However, for the normal voting round, customers must vote on all proposals in each round (voting form or whatever format will be sent to eligible voters) to be eligible for rewards.
It's important to keep in mind that these rewards are set by DeFiChain and are earned by voters who fulfill the eligibility criteria outlined in the previous chapter. Additionally, customers are encouraged to check the DeFiChain website and social media channels for the most up-to-date information.
How can you cast your vote?
1) To participate, you must first log in the Cake DeFi mobile app. If you haven't downloaded it yet, you may click here.
2) Once logged in, go to Freezer and click on the "Special Voting DFIP" banner at the top of the page.
3) You will then be redirected to the list of proposals that you need to cast your vote on. Make sure to cast a vote on each of the proposals listed.
4) Note that you will not be eligible for rewards if you choose not to complete the voting process.
5) Once done, simply click "COMPLETED" to return to the main page.
There are more opportunities to participate in DFIPS voting in the future, so stay tuned for more updates.