How to Vote on Proposals in the DMD Diamond DAO

Voting in DMD Diamond DAO is a crucial process that determines the future of proposals within the ecosystem. This guide provides a step-by-step walkthrough of how to participate in the voting process as a validator candidate or a delegator.

DAO Phases

1. Proposal Phase: Community members submit proposals.
2. Voting Phase: Begins immediately after the proposal phase ends.
3. Finalization & Execution Phase: Concludes the process and implements approved changes.

Who Can Vote?

• Validator Candidates: Direct participants in the voting process.
• Delegators: Indirect participants who stake their DMD Diamond coins on validator candidates and influence voting through them by increasing their voting power.

Understanding Voting Power

• Voting power is determined by the amount of DMD coins held
• It is calculated in %
• It depends on the weight of the validator candidate stake (including the delegated stake on top of him) within the entire DMD possession
• It represents the weight of a validator candidate’s vote relative to the entire DAO
• Delegators influence voting by choosing validator candidates who align with their decisions

How Voting Results Are Calculated

Voting results are based on two main indexes:

1. Exceeding Yes Answers % — The difference between the percentage of “Yes” votes and “No” votes (%s of the yes and no votes are calculated based on the voting power).
2. Participation % — The percentage of total voting weight that participated in the proposal.

Each proposal type has specific thresholds for these two parameters:

A proposal is accepted if both conditions are met by the end of the voting phase. If not, the proposal is declined by the community.

Example Calculations

Example: Total DMD supply = 1,000,000 DMD

Accepted Proposal

• Participation: 700,000 DMD (70% of total supply, exceeding the 33% requirement)
• Positive Answers: 600,000 DMD (60% of total staked coins)
• Negative Answers: 100,000 DMD (10% of total staked coins)
• Exceeding Yes Answers: 60% — 10% = 50% (above the 33% threshold)
• Result: Proposal is accepted.

Rejected Proposal (Low Exceeding Yes Answers)

• Participation: 600,000 DMD (60% of total supply, exceeding the 33% requirement)
• Positive Answers: 350,000 DMD (35% of total staked coins)
• Negative Answers: 250,000 DMD (25% of total staked coins)
• Exceeding Yes Answers: 35% — 25% = 10% (below the 33% threshold)
• Result: Proposal is not accepted.

Rejected Proposal (Low Participation)

• Participation: 100,000 DMD (10% of total supply, below the 33% requirement)
• Positive Answers: 90,000 DMD (9% of total staked coins)
• Negative Answers: 10,000 DMD (1% of total staked coins)
• Exceeding Yes Answers: 9% — 1% = 8% (below the 33% threshold)
• Result: Proposal is not accepted.

How to Vote 1. Access the Voting Page

• Navigate to the DAO page.
• Review the list of active proposals.
• Choose a proposal to vote

2. Review Proposal Details

Each proposal includes:

• Title and description
• Payout address and amount (if applicable)
• New parameter and new proposed value (if applicable)
• Contract upgrade details (if applicable)
• Wallet that created the proposal
• Required participation and approval thresholds
• Voting bar
• Discussion link (optional)
• Voting buttons

3. Cast Your Vote

• You can vote For or Against the proposal.
• Once a vote is cast, it can only be changed to the opposite (not removed). Validators are encouraged to make early decisions and stick with them to attract delegates seeking predictable voting results.

4. Monitor Voting Results

• Track Participation and Exceeding Yes Answers in real time.
• Use the Validator Candidate Participation Table on the Validator page to see how validators are voting.

Delegator Participation

• A Validator Candidate Participation Table on Validator page lists active proposals and how each validator voted.
• Delegators use this data to decide whether to continue supporting a validator candidate.
• If a validator candidate does not align with a delegator’s preferences, they can re-delegate their stake to another validator.

Finalizing and Executing Proposals 1. Finalization

• Required for all proposals before new proposals can be created.
• Involves recording the final decision and updating the blockchain.
• Can be done by any community member.
• During this step, proposal fees (paid for an accepted proposal creation) are refunded to the person who created the proposal.
• It can be done from the Historic proposals list (see ‘Finalize’ button near the proposal in the list)

2. Execution

• Implements the approved changes.
• Some proposals (e.g., contract upgrades) must be executed by the original proposer.
• Open and ecosystem parameter change proposals can be executed by anyone.
• Occur during the new DAO phase following the phase in which the proposal was created and finalized (so there are 28 days to do it after the previous DAO phase ends)
• New proposals can be created and voted on even if there are unexecuted proposals from the previous DAO phase
• It can be done from the Historic proposals list (see ‘Execute’ button near the proposal in the list)

Voting Timeframes

• Voting phase duration: 12 hours
• Execution period: 28 days post-approval
• Unexecuted proposals expire after this period, but do not block new proposals.

Conclusion

Voting in DMD Diamond DAO is designed to be transparent and democratic. Validators and delegators play vital roles in shaping the ecosystem’s governance. By understanding the process, you can actively participate and influence decisions that impact the DAO’s future.