How to vote? FAQ

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Participation in VirtuSwap Governance

To participate in VirtuSwap Governance, you should stake your VRSW tokens to receive an equal amount of veVRSW tokens - a vote escrowed VRSW that contains the associated voting rights.
Any amount of VRSW tokens can be staked in the protocol, and any amount of veVRSW can be used for voting on governance proposals. veVRSW tokens can be used for voting on VirtuSwap DAO proposals immediately.

VirtuSwap DAO design

In order to participate in VirtuSwap DAO voting, you should stake any amount of VRSW tokens to redeem your vote-escrowed VRSW tokens, represented by “veVRSW” ticker and used for voting.

VirtuSwap DAO members can make three types of decisions related to the governance of the VirtuSwap protocol:

  1. Ownership decisions - ownership proposals are not limited to specific subjects, and include amongst other issues proposals related to: constitutional decisions (about governanace mechanism and thresholds), allocation of funds for partnerships, deployment of VirtuSwap DEX on additional chains, appointting of members of the EmergencyDAO and decision to override Parameter or EmergencyDAO decisions (as defined below). Given the significant power Ownership proposals hold, the threshold to pass such a proposals is a qurom of at least 40% from veVRSW token holders and over 50% majority from veVRSW actual voting.
  2. Parameter decisions - parameter decisions are specific, predefined decisions that benefit from lower thresholds. A decision can become a Parameter decision only if and after an Ownership decision categorized it as such. Parameter decisions are more technical in nature, and can include for example a proposals to blacklist a token from the “Allowed Reserve Tokens” list. To approve a Parameter decision, the vote should pass with 20% quorum from veVRSW token holders and 50% majority support from veVRSW actual voting.
  3. EmergencyDAO - VirtuSwap EmergencyDAO includes prominent figures from the DeFi ecosystem and key contributors from VirtuSwap ecosystem. The EmergencyDAO will be responsible and authorized to take measures to protect the protocol or users’ funds in extreme circumstances. Members of the EmergencyDAO will be appointed by an Ownership proposal, which shall provide their mandate and responsibilities. The threshold to pass an EmergencyDAO proposal is a normal majority of the EmergencyDAO members.

It should be noted that a minimum of 1,000,000 veVRSW tokens, which represent 0.1% of the total VRSW cap, is required to initiate a new proposal. This threshold makes sure that the attention of the DAO members will not be spammed by endless proposals on the one hand, but the relatively low threshold will enable many community members to initiate new proposals.

VirtuSwapDAO Systems

VirtuSwapDAO uses the following systems for the voting process:

  1. Staking - the staking system is used to stake VRSW tokens and receive vote-escrowed veVRSW tokens that are used for voting. The staking page can be found here: <<>>
  2. Governance Forum - a forum dedicated to all governance-related aspects, from open discussions and community updates to specific proposal review. The Governance forum can be found here: https://discourse.virtuswap.io/
  3. SnapShot - VirtuSwapDAO Snapshot page is used for voting on binding proposals. See the DAO’s snapshot page here: VirtuSwapDAO Snapshot