99 lines
6.4 KiB
Markdown
99 lines
6.4 KiB
Markdown
# Governance
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The following governance rules apply to all Tornado Cash pools (including Tornado Cash Nova).
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### How to suggest a proposal ?
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In order to participate in Tornado.Cash governance, users first need to lock tokens in the governance contract. If a user votes or creates a proposal, the tokens cannot be unlocked before the proposal execution period ends (8.25 days from proposal creation). The locked tokens can also be delegated to another address.
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To create a proposal, a user needs to have at least `1,000 TORN`. All proposals must be smart contracts with verified code that are executed from the [governance contract ](https://etherscan.io/address/0x5efda50f22d34F262c29268506C5Fa42cB56A1Ce)(using `delegatecall`). This way, it’s easy to audit and test any governance changes.
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The voting period for a proposal is 5 days. A proposal will succeed if it receives a simple majority of votes and there are at least `25,000 TORN` total votes (if turnout is too low, the proposal automatically fails).
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After a proposal succeeds, it is subject for a timelock of 2 days. After the timelock, any user is able to execute the proposal (which initiates the changes). If proposal is not executed for 3 days after that, it is considered _expired_ and can no longer be executed.
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All of these initial parameters are relatively small, since there won’t be many TORN tokens in circulation early on. But as the circulating supply increases, governance may adjust these thresholds.
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A proposal can be of the following nature:
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* Adding a new Tornado Cash pool in the proxy
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* Changing the AP reward rates parameters
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* Unpause/Pause the TORN token
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* Change some core mining contracts such as the `TornadoTrees` contract
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* A combination of all of the above
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And many more can be done. To find out exactly what can be changed through governance in the protocol, look for the functions with the modifier `onlyGovernance` in the smart contracts.
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The governance functions are represented by a red arrow in [this architecture diagram.](https://viewer.diagrams.net/?highlight=0000ff\&edit=\_blank\&layers=1\&nav=1\&title=tornado-cash-contract-overview.drawio#Uhttps%3A%2F%2Fraw.githubusercontent.com%2FRezan-vm%2Ftornado-cash-edu%2Fmain%2Ftornado-cash-contract-overview.drawio)
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NOTE: Parts of this article was taken from [this medium post.](https://tornado-cash.medium.com/tornado-cash-governance-proposal-a55c5c7d0703) Credits goes to the Tornado cash team.
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### How to vote ?
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You first need to deposit (or lock) TORN tokens into the governance contract.
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Go to: [https://tornadocash.eth.link/governance](https://tornadocash.eth.link/governance)
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Click `Manage` -> `Lock Tab`
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Approve the governance contract to transfer your TORN tokens by clicking on the `Approve` button. Once the approve is confirmed, chose the amount you want to deposit and click `Lock`. Confirm the transaction in your wallet and wait for the confirmation.
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.png>)
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Before the vote, the next crucial step is to review the proposal.\
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Legitimate proposals should have a dedicated post on [Torn.community ](https://torn.community)under the category “Proposal”. The forum post will provide additional context and arguments on the proposal. Read the thread and make your own mind on the issue.
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Once a proposal was submitted it should appear on:\
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[https://tornadocash.eth.link/governance](https://tornadocash.eth.link/governance)\
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Proposal are implemented in the form of a smart contract making changes to the system. It is therefore important to verify the address of the smart-contract and review its code. Find the address of the proposal contract here:
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Look for the contract address on Etherscan and make sure that the source code is verified and readable.
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Read the source code and make sure that it matches what is described in the forum post.
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If you are not technical or not comfortable to read Solidity code, get someone you trust to review the contract for you.
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If you agree (or disagree) with the proposal code, it time to vote!
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A proposal have a voting windows of 5 days. This means that we have 5 days to reach the vote quorum of 25k TORN.
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Important: Once you voted, your tokens will be locked for 8.25 days from the moment the proposal was submitted (the start of the 5 days voting period). After the 8.25 you can withdraw your tokens from the governance contract. Note that you can vote on 2 proposal at the same time without incurring additional lockup period (Only the most recently submitted proposal will matter for the 8.25 lockup).
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To vote, simply click on the Green check mark or the the red cross depending whether you accept or reject the proposal. Confirm the transaction with Metamask and your vote is in!
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### How to delegate the vote ?
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If you are a TORN token holder, you can delegate your voting power to someone else without having to send him the tokens.
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IMPORTANT: If you delegate your tokens and that your delegate votes or initiate a proposal, your tokens will be locked for 8.25 days from the moment the proposal that the delegate voted on started. Note that that you can always undelegate at any time.
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To achieve delegation, go to: [https://tornadocash.eth.link/governance](https://tornadocash.eth.link/governance)
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You first need to lock your tokens in the governance contract. Click **`Manage`** -> **`Lock`** tab
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Approve the governance contract to transfer your TORN tokens by clicking on the **`Approve`** button. Once the approve is confirmed, chose the amount you want to delegate and click **`Lock`**. Confirm the transaction in your wallet and wait for the confirmation.
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The last step, is to make the actual delegation. Go again to [https://tornadocash.eth.link/governance](https://tornadocash.eth.link/governance)
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Click **`Manage`** -> **`Delegate`** tab
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Fill-in the address to which you want to delegate and click **`Delegate`**. Approve the transaction in your wallet and wait for confirmation.
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The totality of your locked balance will be delegated.
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You can undelegate at anytime. To undelegate simply use the `Undelegate` Button in `Manage` -> `Undelegate` Tab.
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_Written by_ [_@rezan_](https://torn.community/u/Rezan/summary)
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_Updated by_ [_@bt11ba_](https://torn.community/u/bt11ba/)
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