One of the greatest challenges of building a cryptocurrency platform is ensuring you create a decentralized system of governance to manage, fund, maintain and expand the project. Stakenet uses the core of DASH and therefore inherited it's Decentralized Governance system.
Through the network of full nodes and the collateral requirement (15000 XSN), Stakenet already has a decentralized network of masternode operators that are heavily invested in the future of the platform, and that as a group can act as stewards of the core protocol development and promotion. Stakenet chose a decentralized management system based on the masternode voting mechanism. Masternode operators are not the only ones interested in the success of Stakenet, but they are the most stable ones because, unlike Stakers, they can’t reuse their asset for any other purpose or coin.
The system works as a decentralized voting mechanism set up in the rules governing the blockchain, where budgets for specific projects are proposed, then the masternodes as a whole vote on them. Each project, if it passes, is added to the total budget and paid directly from the blockchain to the person doing the work. This allows Stakenet (XSN) to hire core developers and pay them directly after approval of the work in a decentralized fashion.
A masternode votes on a proposal (technically a governance object on the blockchain) using the example command “masternode vote yes”, “masternode vote no” or “masternode vote abstain”. The votes then propagate across the network, and are tallied according to instructions followed by the network itself. Budgets under discussion and voting progress can be viewed using the example command “masternode budget show”. Head over to the actual Stakenet Core Wallet Governance commands for more details.
Need more information? Have a look at DASH's well-written documentation about the Decentralized Governance.
Stakers and Masternodes take 45% of the block reward each, at the time it is created. The remaining 10% is disbursed monthly by the Masternode operators once the results of their votes are tallied, creating the first self-sustaining decentralized cryptocurrency platform organized as a Decentralized Autonomous Organization (DAO).
The total budget of the network can be calculated by taking 10% of the reward over the period of time between two superblocks, which occur every 43200 blocks or approximately 30 days . A voting cutoff occurs 43200 blocks before the superblock, and the final votes are tallied at this point.
A proposal must satisfy the condition:
(YES votes - NO votes) > (Total Number of Masternodes / 10)in order to be considered passing. Then, in the superblock, the winning proposals are awarded in the order of the margin by which they are passing until either the entire budget is allocated or no more passing proposals exist. This allows for completely trustless and decentralized allocation of the budget.
The creation of a Stakenet proposal object is split into two parts, preparing and submitting the the proposal.
In order to start to prepare the proposal object, you need to be sure to have all necessary information ready since you cannot edit it later on. First unlock your XSN Core Wallet by clicking Settings > Unlock, then open the console by clicking Tools > Debug console and execute the prepare command with your proposal data. If this command worked, you signed your proposal, 5 XSN fee is burnt (permanently removed from circulation) and a transaction ID is generated.
Once this transaction has 6 block confirmations, another command will appear to submit the prepared governance object to the network for voting.
For more information check out DASH's proposal creation.
As a masternode operator, you need to open the XSN Core Wallet and vote manually in the debug console.
You can either vote for a proposal, against a proposal or abstain. Once you have the governance-hash you are ready to execute one of the following commands:
gobject vote-many will execute this voting option for all active masternode of this wallet.
Check out this video for further guidance:
Open the XSN Core Wallet and the debug console (Tools > Debug console) to execute any of the following commands: