Voting

What is the voting contract?

The voting contract is a proxy smart contract which locks up your MKR within a hot wallet and enables you to vote with your MKR stored within your cold wallet.

What is the proxy contract?

A proxy contract is a smart contract which you allow to carry out multiple transactions in an atomic way. This means you only have to sign one transaction for multiple steps to be executed.

What is governance voting?

The objective of governance voting is to represent a resolution on a matter or collection of matters. A matter could be the inclusion of new Oracles, or the addition of a new risk team.

What is executive voting?

The objective of executive voting is to change the state of the system. An example of this would be to vote in risk parameters for a newly accepted collateral type.

Why do I have to have MKR to vote?

MKR is the governance token for MakerDAO and as such you must hold MKR in order to vote. Holders of this MKR governance token are entitled to vote for the risk management and business logic of the Maker system. Risk management is crucial for the systems success and survival, and is done by voting on specific risk parameters for each collateral asset and CDP type. A more detailed explanation can be found here.

What happens at the end of a vote?

If the vote is a time limited vote (i.e. ends at a certain time) then at the end of voting period, a snapshot will be taken of all the current votes and result will be with the majority of votes. For governance voting, this doesn’t mean any direct changes to the system, but often an acceptance to change something within MakerDao, the Risk Team or the Foundation. For executive voting, we do not use time limited votes, instead we use approval voting. Once a vote has been approved, it will automatically be deployed into the Maker systems. Examples of this can be changing of the stability fee, or introduction of new collateral types.

What happens if a governance vote is tied?

If a majority has not been achieved when the vote ends (including a tie) it will not be accepted by the foundation.

What happens if I want to withdraw my MKR during a vote?

Withdrawing your MKR during a vote is fine, however please note that the MKR will also be removed from any proposal it is currently being used to vote on.

If the vote has already started can I still participate?

Yes, you can join the vote at anytime. All you need to do to get started is to setup your voting contract, lock in your MKR, and you’re available to vote.

Can I change my vote once I’ve placed it?

Yes. Once you have voted simply click ‘Withdraw vote’ on the proposal you have already voted for and then vote for the proposal you wish to vote for.

Where will discussions and debate take place?

At the moment, discussions will take place on Reddit and chat.makerdao.com

How is the voting calculated?

Voting is weighted for the amount of MKR that is voted onto a proposal. For example, if 100 users hold 600 MKR and vote for proposal A, and 50 users hold 400 MKR and vote for proposal B, then Proposal A would win with 60% of the vote, as Proposal B only has 40% of the vote.