Launching Stader’s Governance Mechanism

Dear Stader Fam,

Launching Stader’s Governance Mechanism

Dear Stader Fam,

Our mission to build the next-gen staking solution to grow your DeFi yield continues! And what better way to do it than by empowering our passionate and loyal community with the launch of Phase 2 of Stader’s Decentralization Roadmap.

Phase 1 (Governance Forum) was a massive success all thanks to you! The forum received 8k+ views, 80+ member sign-ups and 2 proposals in less than a month. Phase 2 of our decentralization roadmap is now complete: You can now use your $SD tokens to vote on proposals. This takes us one step closer to our decentralization goal — empowering our community to decide the future of Stader.

What does this mean for our community?

$SD tokens now hold the key to a multitude of decisions across the 6 chains that Stader is present on! Create proposals, share your opinions and use your SD tokens to vote on proposals. Going forward, the following decisions will follow the governance mechanism process:

  1. Any implication on smart contract parameters for liquid staking
  2. Changes to validator selection criteria
  3. Changes to fees
  4. SD token related
  5. Treasury management and SD staking

How will this work?

Here’s an overview of Stader’s Governance Mechanism:

The entire process shall consist of 3 steps-

  • Community Governance Forum:

Anyone can post a proposal and get feedback from the community. Proposals can be submitted under 4 categories. Read more about it here.

  • Snapshot voting:

$SD token holders are eligible to vote on proposals on Stader’s Snapshot voting here:

  1. Criteria to submit a proposal: Hold at least 50,000 SD tokens
  2. Quorum to pass a proposal: 1Mn SD votes
  3. Voting Power will be the sum of balance of SD & xSD tokens. Voting power is currently available for SD tokens and will be extended to xSD tokens in the future. (xSD will be launched in Phase 3: SD Staking)
  4. $SD token holders can choose the following options to cast their vote: “for”, “against” or “abstain”
  5. The proposal will be open for voting for a period of 7 days
  6. If the proposal does not meet the quorum at the end of the voting period, it will be rejected. Thereafter, the proposer may resubmit the proposal for voting after 1 month.
  • Implementation:

Once a proposal has passed the quorum, it will be implemented off-chain. The timeline for implementation will be defined by the team for each proposal. Since Stader is a multi-chain protocol, currently proposals are not executable code, they are implemented off chain & executed by the team on a specific chain.

Stader Governance Council (SGC): Stader will establish a governance council composed of members from Core team, individuals with diverse strategic and operating experience across building strong communities & investment management. For the initial few months, the council will have the power to veto or pass proposals to safeguard the interests of the community at large, in extreme situations.

  1. In case of any adverse proposals, council members will meet and discuss the implications of the proposal. Majority voting of the Council will determine the veto to be exercised against a proposal.
  2. In case the required quorum for key proposals isn’t reached, despite positive community feedback, the Council will intervene to pass the proposal. This will be done after the majority of the Council consents to voting on the proposal.
  3. All Minutes of meeting of the Council will be documented and summary will be shared with the broader community.
  4. The members of the Community Governance Council will constitute members from the Stader Team as well as the community:

Here’s hoping we hear more voices from our community via our governance process. We encourage all community members to take an active part in discussions and vote on proposals that will determine Stader’s future.

Do share your feedback and suggestions in our Forum here or reach us on our social handles: Twitter  | Discord