🗳️ Voting with SdTokens
Your Vote, Your Power
Holding an sdToken is equivalent to locking the token for 2 years.
📤 The concept of Meta-Governance
On the first page, we talked about the concept of "vote replication". This is also called meta-governance.
Basically, we have a replication of each underlying protocol vote (when we have a Liquid Locker on top of him), either for gauge allocations or for protocol governance proposals.
This implies that holders of sdTokens have the ability to vote via Stake DAO, and the Liquid Locker will vote consequently with his locked token balance on the underlying protocol.
💵 Vote Incentives
With Votemarket, individuals and DAOs can incentivize votes for specific gauge allocations.
When users vote with their sdToken, they do so through the Liquid Locker, which holds the underlying protocol voting power. Stake DAO distributes incentives bi-weekly to users based on their voting choices to ensure a fair distribution.
🥱 Vote Delegation
By delegating your voting power to Stake DAO, the core contributors will strategically vote on gauge votes to maximize your voting incentives, distributed bi-weekly. For votes not involving incentives, they will cast votes based on what they believe is in the best interest of the DAO.
🕐 Time-weighted average price and double sdTokens votes.
To safeguard against potential manipulation, such as a user momentarily depositing a large amount into the sdToken gauge to gain significant rewards and voting power, then withdrawing immediately after, Stake DAO uses a method called Time-Weighted Average Voting Power (TWAVP).
The TWAVP calculates the average voting power over a certain period, taking into account the duration a user's tokens have been staked in the gauge. This method discourages users from manipulating the system by staking and unstaking tokens around voting periods to unfairly gain rewards.
Two types of votes can occur simultaneously: gauge allocation votes and underlying protocol governance votes. The TWAVP for these votes is set at 10 days and 30 days respectively.
The 30-day TWAVP for the underlying protocol governance votes ensures that the voting power is not influenced by immediate changes made by the gauge allocation votes, which use a 10-day TWAVP.