Voting
Project bids
- Browse bids: Users can review active project proposals on Hydro. Each proposal represents a project seeking liquidity and offering tributes (rewards) to voters.
- Vote by Tranche: Users can vote on one proposal per tranche. A tranche is a specific category of liquidity (e.g., ATOM ICS tranche or ATOM general tranche).
- If a user tries to vote for more than one proposal in the same tranche, they will be prompted to change their vote, as only one proposal per tranche can be selected.
- Cast a Vote: Once a user selects a proposal, their entire voting power is used to support that proposal. The voting power remains locked until the end of the voting round.
- Change a Vote: If a user decides to change their vote within the same tranche, they can do so before the voting period ends. They can still only vote for one proposal in the tranche.
Notes:
- Multiple Tranches: Users can vote on multiple proposals if those proposals belong to different tranches (e.g., one vote for an ICS project and another for a non-ICS project).
- Tribute Distribution: Once the voting round concludes, tributes (rewards) are distributed to voters based on the amount of voting power they used to support the winning proposals.
Voting Eligibility Based on PoL Duration
When voting for projects, it’s important to consider the PoL Duration. Protocol-Owned Liquidity (PoL) represents the liquidity allocated by Hydro to support projects, and the PoL Duration determines how long the liquidity will remain with the project.
Key Points for Voting Eligibility:
- Your locked ATOM duration must match or exceed the PoL Duration of the project you want to vote for.
- For example, if a project has a PoL Duration of 3 months but your locked ATOM is only for 1 month, you won’t be able to vote for that project.
- To vote for projects with longer PoL durations, extend your ATOM lockup to meet or exceed the duration required.
How to Extend Your Lockup:
- Navigate to your lockup dashboard on the Hydro platform.
- Choose the “Edit Lockup” option and select the desired duration.
- Confirm the transaction in your wallet to finalize the extension.
By aligning your lockup duration with project PoL Durations, you can participate in the governance process and support the projects you believe in.
Tributes
Tributes are distributed at the end of each voting round based on the amount of voting power locked in support of each project by each user. Here’s how the process works:
- Tribute Offering: Projects offer tributes to incentivize users to lock their voting power into the project.
- Lock-Up and Vote: Users lock their voting power to vote for a project.
- Distribution: At the end of the voting round, tributes are distributed proportionally based on the voting power each voter locks.
Key Points:
- The more voting power you lock, the higher your voting power and the greater your share of the tribute.
- Tributes are financial rewards and can include tokens, liquidity, or other incentives based on the project’s offering.