On-chain proposal

Governance parameters​

The following are parameters that are currently present in the governance process:

• Minimum deposit: 10,000 KIMA

• Maximum deposit period: 14 days

• Voting period: 7 days

• Quorum: 33.40% of participating voting power

• Pass threshold: 50% of participating voting power

• Veto threshold: 33.40% of participating voting power

Deposit period​

The deposit period lasts 14 days.

Before a governance proposal enters the voting period (i.e., for the proposal to be voted upon), there must be at least a minimum number of KIMA deposited (10,000). Anyone may contribute to this deposit, though it is usually filled by the proposal maker. Deposits of passed and failed proposals are returned to the contributors.

Burned deposits​

Deposits are burned only when proposals are vetoed. Deposits are not burned for failing to meet quorum or for being rejected.

Voting period​

The voting period is currently a fixed 7 day period. During the voting period, participants may select a vote of either 'Yes', 'No', 'Abstain', or 'NoWithVeto'. Voters may change their vote at any time before the voting period ends.

What do the voting options mean?​

• Abstain: The voter wishes to contribute to quorum without voting for or against a proposal.

• Yes: Approval of the proposal in its current form.

• No: Disapproval of the proposal in its current form.

• NoWithVeto: NoWithVeto is a mechanism that allows voters to indicate that they strongly disagree with a proposal or if a proposal is identified to be spam. If more than 1/3 of voters cast a NoWithVeto vote, the proposal is rejected.

Voting 'NoWithVeto' has no immediate additional financial cost to the voter - you do not directly risk your KIMA by using this option.

What determines whether or not a governance proposal passes?​

There are four criteria:

1. Deposit is filled: A minimum deposit of 10,000 KIMA is required for the proposal to enter the voting period

• anyone may contribute to this deposit

• the deposit must be reached within 14 days (this is the deposit period)

1. Quorum is reached: A minimum of 33.40% of the network's total voting power (staked KIMA) is required to participate

2. Simple majority of 'Yes' votes: Greater than 50% of the participating voting power must back the 'Yes' vote by the end of the 7 day voting period

3. Not vetoed: Less than 33.4% of participating voting power must have backed 'NoWithVeto' by the end of the 7 day voting period

Currently, the criteria for submitting and passing/failing all proposal types is the same.