Governance

Governance is a vital aspect of blockchains, enabling stakers to participate in decision-making processes that shape the future of the network. This section provides an overview of the governance process, how to vote, where to view votes, proposal timelines, voting options, and other essential information.

Overview of Governance

Governance on the Sei blockchain allows stakers to propose, discuss, and vote on changes to the network. This decentralized approach ensures that the community has a say in important decisions, maintaining the network's integrity and alignment with the interests of its participants.

Proposal Timelines

The governance process follows a structured timeline to ensure thorough discussion and consideration of each proposal.

1. Proposal Submission: Any user can submit a proposal by paying a deposit.
2. Deposit Period: The community has a specific period to add their deposits to the proposal. If the minimum deposit threshold is met, the proposal moves to the voting period.
3. Voting Period: Once the deposit period ends, the proposal enters the voting period, where votes are cast.
4. Result Period: After the voting period, the results are tallied and the outcome is determined.

Voting Options

When a proposal enters the voting period, stakers have several voting options:

• Yes: Agree with the proposal.
• No: Disagree with the proposal.
• No, with Veto: Strongly disagree with the proposal and request the deposit to be burned.
• Abstain: Choose not to vote either for or against the proposal but still participate in the governance process.

Proposal Quorum

For a proposal to be valid, it must reach a certain quorum, which is a minimum percentage of the total staked tokens that need to participate in the vote.

Proposal Types

Proposals can range from parameter changes and software upgrades to community spend proposals and other governance-related matters.

Proposals

Anyone can create a governance proposal on Sei. After gaining support and feedback from the community, a proposer drafts and submits a proposal alongside an initial deposit.

The most common proposal types include:

• ParameterChangeProposal: To change the parameters defined in each module.
• CommunityPoolSpendProposal: To spend funds in the community pool.
• TextProposal: To handle other issues like large directional changes or any decision requiring manual implementation.

Voting Process

Community members vote with their staked Sei. One staked Sei equals one vote. If a user fails to specify a vote, their vote defaults to the validator they are staked to. Validators vote with their entire stake unless specified by delegators. For this reason, it is very important that each delegator votes according to their preferences.

The following is a basic outline of the governance process:

1. Proposal Submission: A user submits a proposal and a two days deposit period begins.

2. Deposit Period: Users deposit Sei as collateral to back the proposal. This period ends after two days deposit period or a minimum expedited threshold of 7000 Sei is deposited. Deposits protect against spam. If a minimum deposit of 3500 Sei is not met, all deposits are burned and the proposal does not proceed.

3. Voting Period: The five-days vote period begins. The voting options are:

   • Yes: In favor.
   • No: Not in favor.
   • NoWithVeto: Not in favor, and the deposit should be burned.
   • Abstain: Voter abstains. Abstain votes count toward meeting the quorum.

4. Tallying Votes: The votes are tallied. Proposals pass if they meet three conditions:

   • Quorum is met: at least 33.4% of all staked Sei must vote.
   • The total number of NoWithVeto votes is less than 33.4% of the total vote.
   • Threshold is met: the number of Yes votes is greater than the number of No and NoWithVeto votes. Abstain votes are excluded from the Threshold tally.

5. Result Period: If the previous conditions are not met, the proposal is rejected.

6. Implementation: Accepted proposals get put into effect. Once accepted, the changes described in a governance proposal are automatically put into effect by the proposal handler. Generic proposals, such as a passed TextProposal, must be reviewed by the Sei team and community and must be manually implemented.

7. Deposit Refund/Burn: Deposits get refunded or burned based on the voting outcome.

Deposits

Deposits protect against unnecessary proposals and spam. Users can veto any proposal they deem to be spam by voting NoWithVeto.

If a proposal fails to meet the minimum deposit amount within the deposit period, the proposal will not enter the voting period, and the deposit will be burned.

Proposals that meet the minimum deposit requirement and make it to the voting period will be refunded under any vote outcome except NoWithVeto. If the number of NoWithVeto votes is above 33.4% of the total vote, the deposit will be burned. Deposits will be refunded under any other condition.

Additional Information

Governance in the Sei blockchain empowers the community to actively participate in the network's development and evolution. By understanding the governance process and engaging in voting, token holders can influence the direction of the network and ensure it aligns with the community's vision and values.

Common Questions

What happens if my proposal is rejected? If your proposal is rejected, and it didn't meet the minimum deposit threshold, the deposit is burned. Otherwise, the deposit is returned to the proposer.

Can I change my vote during the voting period? No, once you cast your vote, it is final and cannot be changed.

What is the minimum deposit required for a proposal? The minimum deposit required is 3500 Sei, but proposals can have higher thresholds for expedited processing.

How do I view active proposals and vote results? Active proposals and vote results can be viewed on the Seiscan (opens in a new tab) or by querying the blockchain directly using seid.