Core Concept

At the heart of the protocol lies a simple but powerful mechanism: capital allocation as governance.

Token holders do not merely signal support through abstract voting weight. Instead, they commit capital. When a user supports a delegate, they stake their tokens into the system through the Voting contract. That stake is assigned to a specific proposal and directly contributes to its competitive standing.

The amount of tokens staked determines two fundamental outcomes.

First, it determines proposal ranking. Proposals are ranked purely by total staked capital. There are no committees, no subjective scoring systems, and no off chain influence. The ranking reflects real economic conviction.

Second, it determines the proposal’s share of protocol revenue. The Tax Distributor sends daily rewards to the top five proposals based on this ranking. Capital weight is therefore directly connected to revenue flow.

This creates a closed incentive loop:

• Capital determines ranking.

• Ranking determines revenue access.

• Revenue access incentivizes more capital allocation.

Only the top five proposals receive daily revenue distribution. This competitive threshold ensures that delegates must actively maintain support. Falling out of the top five means losing access to rewards, which naturally drives ongoing engagement and strategic behavior.

The model is intentionally minimal in structure but powerful in effect. It converts governance from a static decision making process into a dynamic capital marketplace.

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Key Properties

Continuous Staking Model

The system operates without discrete voting windows or periodic resets. Staking is continuous. Once tokens are staked toward a proposal, they remain active until the user decides to withdraw or reallocate.

This removes artificial timing games and reduces friction for participants.

No Epochs

There are no voting epochs. The system does not reset influence at fixed intervals. Ranking is always based on current total stake.

This ensures that governance reflects real time capital conviction rather than historical snapshots.

No Forced Revotes

Participants are not required to repeatedly confirm their vote. If a user supports a proposal, that support remains active indefinitely unless they choose to change it.

This design reduces unnecessary transaction costs and improves user experience.

No Cooldown on Unstaking

Users may withdraw their staked tokens at any time without a waiting period. Capital is not trapped.

This is a deliberate decision. The protocol does not restrict liquidity. Participants retain full ownership flexibility over their assets. Governance influence is earned by committed capital, not forced lockups.

Fully Capital Backed Voting

Voting power equals staked tokens. One token equals one unit of weight.

There are no multipliers, delegation layers, or synthetic amplification. Influence scales linearly with economic commitment.

This makes the system transparent, predictable, and resistant to artificial governance manipulation.

Revenue Split Between Delegate and Voters

Each proposal defines a revenue split using basis points. When the proposal receives ETH from the Tax Distributor, the revenue is divided between:

• The delegate

• The voters who have staked toward that proposal

This structure aligns incentives across both sides.

Delegates are rewarded for attracting and maintaining capital support. Voters are rewarded for identifying and backing high performing delegates.

The result is a competitive ecosystem where governance, capital allocation, and revenue generation are tightly integrated into a single coherent mechanism.