The responsibility of Konomi’s community governance will be shared between the Kono holders and the governance committee. The governance protocol will allow the community to initiate proposals (including DeFi parameter changes, Oracle machine verification methods, P2P new currency launch, etc.), vote, and execute resolutions.
Kono holders can start their own votes or delegate voting rights to other addresses. Any address holding 10,000 Kono will have the right to initiate a proposal (the Kono of that address will be locked during the execution of the voting process and 20 days after the execution). Each address can also initiate a self-governance proposal by destroying 1000 Konos, and when the Autonomous Proposal reaches 10,000 Konos, it will become an official proposal.
Once an official proposal is submitted, it will enter a three-day proposal phase, during which the governance committee will conduct a preliminary review of the proposal and calculate the initial number of votes in favor of the proposal. The voting period lasts three days, and any proposal must meet both the requirements of majority vote and more than 1,500 valid votes to move on to the implementation phase. The proposal will be implemented one day after it enters the implementation phase. The initiator of any proposal has the right to cancel the proposal at any time before it enters the implementation phase.
Kono is the only credential for Konomi community governance and will allow users to participate in community governance or authorize others to do so. The more the amount of Konos held at any address, the more valid votes there will be. In order to ensure fair voting process, the marginal utility of holding a Kono at the same address will diminish accordingly.
Any user can authorize a trusted address to exercise voting rights on his or her behalf, and the number of valid votes will be counted according to the different addresses. If the user transfers the Kono from the authorized address, the authorization will be automatically terminated.
1.4 Calculating valid votes
The formula for calculating the amount of Kono need to cast n valid votes at the same address is = (n²)/5
1.5 Self-governance proposal
Any address can initiate a self-governance proposal by punching 1000 Kono into a black hole address for destruction. The self-governance proposal will allow the initiator raise funds within seven days, and if the initiator can be authorized with more than 10000 Kono within the given time period, the self-governance proposal will become an official proposal.
1.6 Official proposal
Any address with 10,000 Kono or more can initiate a governance proposal. At the time of initiating the proposal, that address will have the option to stake the number of Kono for this proposal (a minimum of 10,000 will have 223.6 valid votes). After 3 days of community discussion and preliminary approval by the governance committee members, the proposal will then enter the voting process. Otherwise, the proposal will be cancelled.
Proposers may only initiate less than or equal to 5 proposals at any one time. They are also not allowed to initiate two identical or conflicting proposals at the same time (e.g. Proposal A proposes to change the USDT pledge rate to 80% while Proposal B proposes to change the USDT pledge rate to 75%).
The voting process will last for three days and any address holding a Kono will have the right to authorize or participate in the voting of all proposals (voting options are yes, no, or abstain), but their Kono will be locked for the duration of the voting and for 20 days after the proposal is passed (if the proposal is cancelled, the lock will be automatically lifted). At the end of the voting period, if the proposal reaches 1,500 valid votes and a majority of the votes cast are in favor of the proposal, the proposal will be approved for execution. Otherwise, the proposal will be cancelled.
1.8 Implementation of proposal
Any proposal that enters the implementation phase will be deployed to the Konomi protocol after 24 hours (if the proposal is more complex, the execution time will be extended accordingly).
1.9 Cancellation of proposal
A proposal can be cancelled any time before it enters the implementation phase. The cancellation decision will be initiated automatically if the prerequisites for moving on to the next phase are not met or can be initiated by the initiator of the proposal. After the cancellation decision is confirmed, all Kono staked to the proposal will be unlocked.
1.10 Transaction fee
A fee of 5 Kono will be charged for each vote or authorization. 30% of the total fee for each proposal will be used to cover network costs, 30% will be destroyed, and 30% will be returned as an incentive to a random 10% of the proposal participants and 10% to the incentive team.
Konomi is a decentralized money market protocol built using Polkadot’s Substrate. Konomi is working to provide active money markets across the entirety of the Polkadot ecosystem, as well as expand and integrate into cross-chain networks. By introducing a fluid market for cross-chain crypto assets, Konomi hopes to provide an overall better user experience that is accessible regardless of the native network the end user prefers.
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