Proposal System

In addition to suggesting a token contract address and supplying a veto bounty, on-chain proposals in the Nuon system also require the following elements:

Proposal Submission: Users submit proposals to the Nuon system. This involves creating a proposal transaction on the blockchain that includes the details of the suggested token contract address and the veto bounty. Users are notified about new proposals through either a Telegram Bot, Discord and/or a Web3 Messaging Service - it is important to have redundancies in place so that no malicious proposals can sneak through (see Build Finance).

Veto Period: Once a proposal is submitted, there is a predefined veto period during which other users can challenge the proposal. Users who disagree with the proposal can submit a veto by holding the necessary veto weight of 2% of total veMint. Results of votes are implemented at the end of the Dutch auction period during which USDC is allocated to vaults.

Voting Mechanism: Token holders can vote on the proposal. This voting can determine whether the proposal is accepted or rejected. Voting power is awarded proportional to nuMint escrowed, as described in Section 4.3, Vote Escrow Weights.

Vote Canceling: Nuon allows for users to use their voting power to cancel out the voting power of another user. This prevents any single address accumulating voting power that is excessive and can use its influence to negatively affect the protocol.

Bounty Handling: If a proposal is vetoed, the veto bounty is added to the buffer. If the proposal is not vetoed within the veto period, the vault is accepted, and the veto bounty is returned to the proposer.

Implementation: Accepted proposals are implemented on-chain. This involves updating the system's state to recognize the new token contract address as valid within the Nuon ecosystem.

Record Keeping: All actions related to the proposal, including submissions, vetoes, votes, and final decisions, are recorded on the blockchain for transparency and accountability.

These elements ensure that the proposal process is secure, transparent, and resistant to spam or malicious activities.

Last updated