How Is a Governance Vote Executed On-Chain Using a Smart Contract?
A governance vote is executed on-chain by a smart contract that manages the voting tokens or rights of the consortium members. A proposal is submitted to the contract, which then opens a voting period.
Members cast their votes by interacting with the contract. Once the period ends, the contract automatically tallies the votes and, if the required quorum and majority are met, executes the corresponding action, such as upgrading the network code or changing a parameter.
Glossar
Decentralized Autonomous Organization
Governance ⎊ Decentralized Autonomous Organizations represent a novel framework for coordinating collective action, particularly relevant within cryptocurrency ecosystems and increasingly, financial derivatives markets.
Vote
Decision ⎊ Vote in a blockchain governance context refers to the signed expression of preference by a stakeholder regarding a proposed protocol change or parameter adjustment, such as modifying options trading fees or collateral ratios.
Governance Vote
Decision ⎊ A governance vote represents the formal, on-chain decision-making process utilized by decentralized autonomous organizations (DAOs) that manage cryptocurrency protocols, including derivative platforms and liquidity pools.