Owner election mechanism
Enabling effective and efficient protocol governance without sacrificing decentralization
Last updated
Enabling effective and efficient protocol governance without sacrificing decentralization
Last updated
Token holders express their preference for a delegate/owner by locking ("staking") their tokens in the DIVA Ownership contract on Ethereum.
If a candidate receives more support than the current owner (as measured by staked amount), a 30-day showdown period can be triggered by the corresponding candidate.
At the end of this period, a snapshot of the candidates' stakes is taken and candidates that have received more support than the current owner have a 7-day window to submit a claim on the protocol ownership. Among those, the candidate with the highest stake automatically assumes protocol ownership and has access to all privileged functions after the end of the election cycle. Staking and unstaking are disabled during this period.
In total, an election cycle lasts 37 days. A cooldown period of 7 days applies following the election cycle end where no new election cycle can be triggered. The following illustration summarizes the process:
The owner elected on Ethereum (primary chain) is orchestrated to secondary chains including Polygon, Arbitrum One and Gnosis via a cross-chain communication mechanism using the Tellor protocol.
Despite the centralized element, the power remains in the hands of the DIVA Token holders. At any point in time (subject to a minimum staking period of 7 days), DIVA Token holders can vote to replace the current protocol owner by directing their stake towards a new candidate.
