Skip to content

Voter Flow

Jump to bottom
tjhunt1 edited this page Jul 26, 2022 · 4 revisions

Voters on the Contribution Proposal System are Validators of the ICON Network who have voluntarily elected to participate in the governance of the CPS.

Validators are tasked with sponsoring prospective applications, voting on submitted applications and keeping approved projects accountable via monthly progress reports.

Project Sponsorship

Each contribution proposal requires a sponsorship from a participating Validator. Sponsor Validators provide 10% of the approved budget as a "Sponsor Bond" to create trust that due diligence has been done by the Sponsor Validator.

Sponsors are rewarded for their due diligence, guidance and risk taken by receiving 2% of the approved budget on a successful proposal (Sponsor Reward). This implies a 20% ROI for a Sponsor's Bond.

The Sponsor Reward is claimable monthly based on successful progress reports submitted by the sponsee.

  • If a project is rejected, the Sponsor Bond is returned to the Validator.
  • If an active project is disqualified, the Sponsor Bond is kept by the CPF Treasury.

Application Period

Validators have three primary responsibilities during the Application Period:

  1. Perform due diligence on prospective proposals to sponsor, accept/deny sponsorship requests
  2. Comment and provide feedback on proposal drafts submitted on the ICON community forum
  3. Ensure any sponsored projects submit their progress reports

Voting Period

Validators are the key to the Voting Period. They are required to perform three tasks during this period:

  1. Vote ACCEPT/REJECT/ABSTAIN on submitted proposals
  2. Vote ACCEPT/REJECT/ABSTAIN on submitted progress reports
  3. Submit Priority Rankings (explanation)

Rewards

Currently there are three main incentives for Validators that participate in CPS governance:

  1. Opportunities to sponsor a project and receive 20% ROI on your bnUSD
  2. Build your reputation in the ICON Validator Ecosystem
  3. Make quality governance decisions that improve the ICON Ecosystem

Penalties

Currently there are only two possible penalties for Validators that participate in CPS governance:

  1. Losing your Sponsor Bond if your sponsored project gets disqualified
  2. Paying a penalty to rejoin the CPS if you are removed for inactivity
Clone this wiki locally