Mechanism

Staking Model

The staking mechanism is the foundation of governance within the protocol. Voting is not a separate action from capital commitment. It is the direct result of staking tokens.

When a user decides to support a proposal, the following sequence occurs:

1. Tokens are transferred from the user to the Voting contract

2. The user is mapped to the selected proposal

3. The total stake of that proposal increases accordingly

All staked tokens are held securely within the Voting contract. The contract maintains internal accounting that tracks:

• The amount each user has staked

• The proposal each user supports

• The total amount staked per proposal

Voting power is strictly proportional to stake.

One token equals one unit of voting power.

There are no multipliers, boosts, or lock based incentives. The system deliberately avoids complex weighting formulas in order to preserve clarity and predictability.

This linear structure ensures that governance influence directly reflects economic commitment.

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Changing Vote

Users retain full flexibility over their capital allocation.

If a participant decides to support a different proposal, the process is straightforward:

1. The user unstakes from the current proposal

2. The user stakes the same or a different amount to a new proposal

Because the Voting contract manages all stake accounting internally, the transition updates proposal totals immediately.

There is no cooldown period for changing support.

This is an intentional design choice. The protocol does not attempt to artificially restrict movement of capital. Instead, it allows capital to flow dynamically toward proposals that generate the strongest conviction.

Capital remains fully liquid at all times.

This creates a responsive governance market where proposals must continuously justify their support.

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Unstaking

Users may withdraw their staked tokens at any time.

When unstaking:

1. The total stake of the associated proposal decreases

2. The user’s voting power is removed

3. The user’s token balance is returned

There are no lockups, vesting schedules, or penalty mechanisms for withdrawal.

This ensures:

• Full asset sovereignty

• No forced long term commitment

• Reduced participation friction

The absence of lockups does not weaken the system. Instead, it strengthens competitive pressure. Proposals must maintain ongoing trust and performance, or capital will exit.

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Ranking Logic

Proposal ranking is determined by a single metric:

Total staked tokens.

There are no subjective inputs, off chain votes, or governance committees influencing rank. The system measures pure capital allocation.

The Voting contract exposes two important view functions:

• getTop5Proposals

• getAllProposals

The getTop5Proposals function returns the five proposals with the highest total stake. This list is used by the Tax Distributor during daily revenue allocation.

The getAllProposals function enables full transparency and allows frontends to display complete rankings to users.

Ranking is entirely capital based.

This simplicity provides three major benefits:

• Transparency, because rankings are easy to verify

• Fairness, because influence is proportional to stake

• Efficiency, because revenue distribution logic depends on a single measurable variable

The result is a governance environment where capital conviction is the only determinant of competitive standing.