How It Works

Creating a Proposal

First, an idea should gain traction within the community and a proposal should be drafted. Community members should utilize the appropriate channels on Umee’s Governance Forum and Umee's Discord to discuss potential proposals before starting the draft process. Proposal ideas should be reviewed rigorously before taking any further steps.
Refer to the "Creating a Proposal" guide to learn the process for creating and submitting an on-chain governance proposal.

The Deposit Period

The deposit period refers to the period of time where UMEE token deposits need to be made in order to demonstrate that the proposal is legitimate.
The deposit period lasts a total of 14 days or until the proposal deposits reach 10,000 UMEE, whichever comes first.
Anyone can contribute to the deposit, and deposits of both passed and failed proposals are returned to the contributors. There are three instances in which deposits will be burned instead of returned to the contributors:
Expiration
Failure to Reach Quorum
Vetoed

Expiration

If the deposit period ends before the minimum deposit of 10,000 UMEE is reached, the deposits will be burned. This helps prevent people from spamming governance proposals.

Failure to Reach Quorum

If less than 40% of eligible votes are cast, deposits will be burned. This helps encourage mass participation and prevent certain proposals from being quietly passed.

Vetoed

If more than 33% of the voting power votes “NoWithVeto,” deposits will be burned. This is an extra precaution in case poor or destructive proposals are able to meet the minimum deposit before the deadline.

The Voting Period

After the minimum deposit has been met for a proposal, the proposal enters the voting period. The voting period is a fixed 5 day period where eligible community members can vote on the proposal. Votes can be cast in the following four ways:
Yes
No
Abstain
NoWithVeto

Yes

The voter approves the proposal in its existing form.

No

The voter does not approve the proposal in its existing form.

Abstain

The voter has no preference on the outcome of the vote, but has still participated in the voting process and therefore potentially helped the proposal reach the quorum needed to recover deposits.

NoWithVeto

The voter strongly disagrees with the proposal and feels the deposits made should be burned. If the total number of “NoWithVeto” votes are over one third (33.4%) of the total votes (excluding “Abstain” votes) the deposits will be burned instead of being returned to the contributors. Community members should use “NoWithVeto” when they determine a proposal is spam, or harmful to the Umee Hub
In order for a governance proposal to pass, the following conditions must be met:
  • A minimum of 10,000 UMEE needs to be deposited within 14 days;
  • The 40% voting participation quorum must be reached during the voting period;
  • A majority (>50%) of voting power needs to vote “Yes”;
  • The total number of “NoWithVeto” votes needs to represent less than a third (33.4%) of the total votes.