Governance Activities & Participation

Decentralized Voting and Validator Stake Allocation

Since governance participants control registry weights through their voting power, validators must earn delegation by offering competitive APYs and building trust with the community.

Governance participants can exercise their voting power directly by voting on proposals and allocating their voting power to validators on the Registry. For proposals, one token equals one vote. For registry allocation, one token equals one vote as well. These are not mutually exclusive. For example, if a DAO participant holds 10,000 KSU tokens, they can allocate those 10,000 votes among up to 10 validators on the registry. They can also vote on proposals, with their choice carrying a weight of 10,000 votes.

Delegation & Representation

Certain DAO participants may choose to delegate their voting power to another, who acts as a Representative, to vote and allocate registry weights on their behalf. When this happens, a delegator will continue to earn staking rewards on their staked KSU tokens, but their chosen Representative will allocate their registry weight voting power and vote on proposals on the delegator’s behalf.

For example, let’s say we have a delegating participant D who holds 10,000 KSU, and a representative participant R who holds 10,000 KSU. Participant D will earn staking rewards on their KSU, but won’t be able to vote on proposals or assign registry weights directly. Instead, participant R will vote on proposals, with their choice carrying a weight of 20,000 votes (the sum of their own 10,000 votes and the 10,000 votes that D delegated to them). Participant R will assign the full 20,000 weight across their chosen validators on the Registry.

Representation rewards

DAO NFT holders who choose to delegate their voting power to other representatives share a small slice of their KSU staking rewards with the representative that acts on their behalf. This provides a revenue incentive for Representative NFT holders to perform well, thus earning delegation from others.