HORD Token Governance
Token governance refers to the mechanism through which decision-making power and control over a Web3 protocol are distributed among token holders. Governance enables token holders to shape a project's future, including protocol upgrades, parameter adjustments, and allocation of resources.
Granting token holders the ability to participate in decision-making is the first step in the progressive decentralization of the Hord protocol. HORD token holders can actively suggest changes to the platform and vote on proposals.
Hord's governance model is designed to empower token holders and ensure a fair and inclusive decision-making process. The platform utilizes a time-weighted token voting architecture, which rewards long-term holders and encourages active participation from committed community members. With a maximum cap of two years, the time-weighted voting power provides proportional influence based on the duration of token ownership.
To ensure a fair and representative voting process, the following specifications are implemented:
Minimum Quorum to Approve a Proposal
A minimum of 2.5% of the circulating supply must participate in the voting process for a proposal to be considered valid.
Hord adopts a time-weighted voting mechanism, where the voting power of each token holder is determined proportionally to the number of tokens they hold. This formula assigns voting power according to the following calculation:
Voting Power = (Tokens Held * Time held multiplier) / Total Token Supply
Voting Power Increase Table
To incentivize long-term participation, the voting power of token holders increases over time. The idea is to reward token holders who have demonstrated a long-term commitment to the DAO with a more substantial voting influence without unbalancing the vote. If the increase in voting power is too high, it discourages new holders from participating.
There is a breakdown of how time will affect voting power:
- 3 months: 1.2x
- 6 months: 1.4x
- 12 months: 1.8x
- 24 months: 2x
Extra Voting Power Capped After 2 Years
Once a token holder has held their tokens for two years, their voting power becomes capped. This limitation ensures that no single participant can accumulate disproportionate influence over time, promoting a more balanced and sustainable governance structure.
Token holders must have held their tokens for a minimum of two weeks to be eligible to participate in the voting process.
Proposal Submission Process
To send a proposal, token holders must fulfill two requirements: A minimum of the equivalent of $1,000 in HORD tokens is required with a holding period of one month. The snapshot platform is updated once per week, every Monday at 10:00 UTC, to reflect the latest token holdings.
The minimum duration for all types of proposals is 10 days. Should a proposal be scheduled to end on a Saturday or Sunday, the voting period will be extended to a Monday. These periods allow sufficient time for token holders to review, discuss, and cast their votes.
Token holders can delegate their voting power to trusted individuals or entities. Delegated votes carry the same weight as the delegator's voting power. A separate document will outline the delegation mechanism and rules.
Hord aims to foster an inclusive, transparent, and responsible decision-making process through this governance constitution.