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DPoS Concept

Plenny's DAO Governance is based on the concept of Delegated Proof of Stake (DPoS). Delegation is used to improve the quality of governance decisions. This feature enables community members to become Delegators and back governors. DELs receive Governance Rewards (GR) in return. Simply put, to participate in delegation and catch more “fish” token holders stake PL2 to delegate their voting rights. As a result, Plenny Governors increase their voting power.

The purpose of the delegation function is to sponsor governors who actively explain improvements and ask for support prior to creating proposals for voting. It encourages governors to conduct informal surveys in the community before critical or complex changes are proposed. This process favors governors with good communication skills, good relations with community members, and a good understanding of factual issues.

In practical terms, delegation supports PGs to reach the Proposal Threshold in case they do not own sufficient PL2 to propose governance actions and potentially win the vote. Governors with a high balance are considered more relevant by the algorithm. In short:

  • The higher the voting power, the more likely a Plenny Governor wins a vote on a proposal.
  • Token holders exercise their voting rights passively by delegating their power to active PGs.

In summary, delegation is the process by which token holders delegate their voting rights to Plenny Governors of their choice. A specifically designed smart contract enables users to stake token for this purpose without losing control of it. However, they waive their right to vote and pass it on to a governor until the end of the delegation. The delegation function is intended to support informed as well as long-term oriented decision-making for the greater good of Plenny.