Governance is live on Pangolin, marking the beginnings of a new chapter in its evolution as the first community-driven AMM for Avalanche and Ethereum assets. PNG holders can now make their voices heard on proposals by voting with their PNG tokens or delegating to another member of the Pangolin community to vote on their behalf.
Coordinating votes from around the world can be complex, of course, so here’s a simple explainer of how to vote on PNG governance proposals, and how to make proposals yourself.
Soon, we’ll see a vibrant ecosystem of proposed improvements and changes to Pangolin. The proposal process has two steps:
Let’s take a more detailed look at each step.
Snapshot is an off-chain, gasless, multi-governance community polling dashboard. It provides Pangolin community members with the ability to submit proposals without writing code. It is free to vote, uses PNG in your wallet and does not require any spending or transferring of PNG.
The proposals on Snapshot are non-binding and act as a means to gauge community support for a proposal prior to implementing the code. Anyone can submit a proposal and proposals can be multi-option.
You must have tokens in your Wallet at the start of the proposal. You cannot participate in Snapshot polling with PNG allocated in liquidity pools.
On-chain proposals are code and not written proposals. Although they come with a written description, their power comes entirely from the smart contract code they execute. They should reflect widely supported submissions from the Pangolin Snapshot polls.
Proposals have the power to execute any smart contract call from the protocol’s Timelock contract. These calls can do things like spend funds from Pangolin’s community treasury or change the contracts that manage daily PNG reward distribution. All proposals must meet the following requirements:
- All code must be complete at submission time.
- Proposals are pass-fail only, no multiple choice or variants within a single proposal.
- Proposers must have 1,000,000 PNG either in their own Wallet, or as a result from PNG delegated to that Wallet holder.
- For example, Proposer A has 25,000 PNG, and 975,000 PNG delegated to them by community members supporting the proposal.
- Proposers must maintain this balance of 1,000,000 PNG tied to their Wallet until the proposal fails or is executed. These PNG cannot be allocated into liquidity pools or moved during the proposal period.
- If this balance falls below the threshold, the proposal may be cancelled by anyone.
- Addresses may only have one active proposal at a time.
The proposal will then follow the following process:
Proposal is registered as “Submitted” and begins a 24 hour holding period before voting begins. Interested voters use this time to prepare for voting and ensure their PNG is properly delegated.
Proposal moves to the “Active” stage and begins a three day voting period. Votes are then cast either for or against the proposal by individuals or their delegated representatives (more on the voting process below).
Proposal either “Fails” or goes to “Pending/Queued” status, where it will spend seven days waiting to be executed by the Timelock contract. Failed proposals do not proceed further.
After the seven-day waiting period, the Timelock contract executes the “Pending/Queued” proposal and the changes are adopted across Pangolin.
Active proposals can be found in the Pangolin application under the Vote tab. These are fully-coded changes to the platform that have been proposed by developers, and will change the application if accepted.
Remember: One PNG = One Vote.
The voting process:
- PNG Holders ensure all of the PNG they plan to vote with is in their wallet. As a next step, a user can delegate to themself or another community member before the start of the active stage (24 hours after the proposal is submitted as “Live”).
Please note: Voting with pooled PNG is not currently supported. A user must withdraw their PNG to have it eligible for voting. We plan to support voting with pooled assets in the future.
Pangolin’s governance system then takes a snapshot of address balances when the first vote is cast. This means, after the voting begins, voters are free to allocate PNG into pools, transfer, sell, or whatever they desire.
Eligible voters then vote for or against the proposal, and wait for the voting period to end. Voting only costs the transaction fee, and does not tie up or lock your PNG, unless you are the proposal submitter or delegated to the proposal submitter. In that case, you may still move your PNG, but doing so risks the proposal being cancelled.
At the end of the voting period, the majority decision will be enacted. There is no required threshold of votes or a quorum.
If a proposal passes, it will be queued for execution in the Timelock contract. There is then a one week buffer for everyone to prepare for the changes and proceed with whatever actions they’d like to take to adapt.
After the Timelock contract reaches its trigger time, it will activate and the new proposal will be enacted across Pangolin.