Nuon v2 Whitepaper
  • Abstract
  • Introduction
  • Challenge
  • Architecture
    • Overview
    • Treasury
    • Deposit Conversion
    • Refilling Buffer
    • Vaults
    • Dutch Auction
    • Cross-chain Deposits
    • Governance
    • Emergency Mode
    • Minting Caps Equilibrium
    • Backstops
  • Governance
    • Veto System
    • Proposal System
    • Vote Power Weighting
  • NUON
    • Overview
    • Rebasing
    • Staking
  • MaxCap
    • Overview
    • Token Allocation
    • Staking Distribution
    • Claiming Excess
  • Miscellaneous
    • Security Audit
    • System Transition
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  1. Governance

Veto System

Nuon uses a veto system similar to Frankencoin’s, where a minority quorum of voters can veto a vault proposal. A veto-based voting system confers several advantages over a traditional majority vote method. It mitigates the ability to acquire a stake large enough to force through malicious proposals by requiring broader consensus for changes, as it is much easier for actors to block proposals than a majority vote system. It is more efficient while also encouraging collaboration, fostering stability, and ensuring only well-considered proposals are implemented.

Proposals are made on-chain by users, who suggest a token contract address and provide a veto bounty for their submission. The veto bounty acts as an anti-spam mechanism to prevent the submission of frivolous or malicious proposals. This mechanism ensures that users have a financial stake in the quality and validity of their proposals.

Once a proposal is submitted, there is a predefined veto period during which other users can challenge the proposal. 2% of the total amount of staked MaxCap is required to veto a proposal. MaxCap stakers who disagree with the proposal can submit a veto by staking a higher bounty than the original proposer.

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Last updated 1 month ago