Mandy

Posted on Mar 3

Deep Dive: Understanding CrossFi’s Governance Parameters

Introduction

CrossFi’s governance system allows token holders to propose and vote on changes to the network, ensuring decentralization and community-driven decision-making. However, to participate effectively, it’s crucial to understand how governance proposals work and what parameters influence their outcomes.

In this guide, we will explore:
✅ How governance works in CrossFi

✅ Key governance parameters and their impact

✅ Querying governance settings using the CLI

✅ Real-world examples of governance decisions

Let’s dive in! 🚀

1. How Governance Works in CrossFi

CrossFi follows an on-chain governance model, allowing token holders to vote on:

Protocol upgrades (e.g., software updates)
Economic policies (e.g., inflation rates, staking rewards)
Community fund spending (e.g., funding ecosystem development)

Governance proposals follow these stages:
1️⃣ Proposal Submission: A user submits a proposal with a required deposit.

2️⃣ Deposit Period: If the minimum deposit is met, the proposal enters the voting period.

3️⃣ Voting Period: Token holders vote using yes, no, no_with_veto, or abstain.

4️⃣ Tallying & Execution: If the proposal meets the required votes, it is enacted.

2. Key Governance Parameters

CrossFi’s governance system has several parameters that define how proposals are handled.

Deposit Parameters

🔹 Minimum Deposit (min_deposit)

The amount of XFI required for a proposal to enter the voting period. If the deposit isn’t met, the proposal is rejected.

🔹 Max Deposit Period (max_deposit_period)

The time limit for meeting the deposit threshold. If the deposit isn’t completed within this period, the proposal fails.

📌 Query deposit parameters:

./bin/crossfid query gov params deposit --home ./testnet

Example Output:

{
  "min_deposit": "100000000mpx",
  "max_deposit_period": "172800s"
}

Voting Parameters

🔹 Voting Period (voting_period)

The duration (in seconds) during which token holders can vote on a proposal.

🔹 Threshold (threshold)

The percentage of yes votes required for a proposal to pass.

🔹 Veto Threshold (veto_threshold)

If a proposal gets this percentage of no_with_veto votes, it is rejected.

📌 Query voting parameters:

./bin/crossfid query gov params voting --home ./testnet

Example Output:

{
  "voting_period": "604800s",
  "threshold": "0.50",
  "veto_threshold": "0.334"
}

3. Real-World Examples of Governance Decisions

Understanding how governance parameters work helps users make informed decisions. Let’s look at three real-world scenarios:

Scenario 1: Proposal Fails Due to Low Deposit

📌 Proposal: A developer submits a proposal to increase the validator set but only deposits 50,000,000mpx, while the minimum deposit is 100,000,000mpx. The proposal gets rejected.

🔍 How to check proposal status:

./bin/crossfid query gov proposal <proposal-id> --home ./testnet

Scenario 2: Proposal Passes with Enough Yes Votes

📌 Proposal: A proposal to increase staking rewards receives 60% yes votes, passing successfully as it meets the 50% threshold.

🔍 How to check voting results:

./bin/crossfid query gov tally <proposal-id> --home ./testnet

Scenario 3: Proposal Rejected by Veto

📌 Proposal: A proposal suggests a drastic reduction in staking rewards. More than 33.4% vote no_with_veto, rejecting the proposal.

🔍 How to check vetoed proposals:

./bin/crossfid query gov proposals --home ./testnet | grep veto

4. How to Change Governance Parameters

Governance parameters can be adjusted through proposals. If the community wants to lower the deposit requirement, for example, they can submit a parameter change proposal.

Submitting a Parameter Change Proposal

📌 Step 1: Create a proposal JSON file (e.g., change-threshold.json)

{
  "title": "Lower Voting Threshold to 45%",
  "description": "This proposal lowers the voting threshold from 50% to 45% to encourage participation.",
  "changes": [
    {
      "subspace": "gov",
      "key": "threshold",
      "value": "0.45"
    }
  ],
  "deposit": "100000000mpx"
}

📌 Step 2: Submit the proposal

./bin/crossfid tx gov submit-proposal param-change change-threshold.json --from <your-wallet-name> --chain-id crossfi-1 --home ./testnet --gas auto

📌 Step 3: Track proposal status

./bin/crossfid query gov proposals --home ./testnet

5. Conclusion

🎉 You’ve successfully learned about CrossFi governance parameters and how they impact decision-making!

Key Takeaways:

✅ Deposit parameters ensure proposals meet a minimum threshold before voting.

✅ Voting parameters define how many votes are needed for a proposal to pass.

✅ Veto power allows the community to block harmful proposals.

✅ Governance parameters can be changed through proposals.

Understanding these parameters helps you make informed governance decisions and contribute effectively to the CrossFi ecosystem. 🚀

For more details, refer to the official CrossFi GitHub repository.

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