# Decentralized Governance

### Proposal Submission

In the Winner Block ecosystem, any token holder can submit a proposal for changes to specific voting parameters, thereby promoting active community participation.

To prevent flooding of proposals and to ensure seriousness, a minimum amount of WBlock tokens, decided through a community vote, is required to submit a proposal.

### Proposal Review

Once a proposal is submitted, it undergoes a preliminary review by the consensus group. This review is necessary for the following types of proposals:

* Smart Contract Whitelisting adding proposals
* Consensus Seats proposals
* Voting Power Cap proposals

The review process ensures that the proposed changes are technically feasible, align with the ecosystem's guiding principles, and are legally compliant.

Proposals that pass the initial review stage are then published on a designated community platform for a period of open discussion. This discussion phase allows the entire community to understand the nuances of the proposal, raise queries, express their views, and engage in constructive debates.

Taking into account the community's feedback, proposers may revise their proposals. Once the proposal is finalized, it's ready to be put up for a community vote.

### Voting Process

The finalized (by consensus if needed) proposal is open to a vote by all token holders in the ecosystem. To vote, holders must stack as many WBlock tokens as they wish, which will be blocked until the proposal is accepted or rejected. The number of tokens used for or against the proposal will determine the point and final outcome of the community vote. &#x20;

When the proposal is completed and executed, participants will then be able to withdraw their initial stacked tokens and receive a corresponding share of the Reward pool allocated for the proposal.&#x20;

For certain votes, such as changes to the consensus seats, the voting process requires participation from at least half of the current consensus members for the vote to be valid.

If the proposal have the required majority (as per the governance rules of the Winner Block ecosystem), it is approved and implemented. Otherwise, the proposal is rejected.

### Community Governance

In the Winner Block ecosystem, token holders assume a central role in shaping the community's trajectory. The voting procedure allows holders to influence critical aspects:

Setting Update Proposals:

* **Liquidity Fees**: Token holders define the fee rate on WBlock outgoing transactions on swap platforms to fortify the liquidity pool. The fee rate can range from a minimum of 0.1% to a maximum of 5%.
* **Burn Fees**: A portion of these tokens is permanently burned, thus reducing overall supply over time. The burn rate can be between 0.1% and 3%.
* **Swap Limits**: The community determines the maximum limit for token swaps, providing a measure of protection against market manipulation. The limit can range from 1M to 1B of available token (full token unit)
* **Global Transfer Limits**: Token holders establish a maximum limit for global token transfers, either through swaps or wallet-to-wallet transactions. This limit can range from 0.01% to 10% of the total token supply in circulation.
* **Voting Power Cap**: To prevent over-centralization of decision-making power, a cap on voting power is implemented. This cap can be adjusted through community voting, ensuring democratic control over time. This can range from 0.01% to 40% of total token supply (in basis points)
* **Proposal Cost**: To submit a proposal for changes to specific voting parameters, token holders must hold a certain amount of WBlock tokens. The exact amount required is decided through a community vote and serves to ensure the seriousness of the proposal while also protecting against spam submissions. This cost is an investment into the ecosystem's robustness and democratic decision-making process. The tokens are then burned. The required amount can range from a minimum of 0.01% to a maximum of 1% of the total token supply in circulation.
* **Community tax**: Token holders of WBlock can exercise their power to determine the portion of each game's earnings that will be disbursed throughout the Winner Block ecosystem via the gaming smart contracts. This can range from a minimum of 0.5% to a maximum of 5% of the game's earnings.
* **Developer tax**: Within our community, it's the token holders who have the authority to decide the portion of game winnings that developers can earn from their games. This can range to a maximum of 5% of the game's winnings.
* **Reward Threshold**: The amount of token allocated as a reward during a vote. If the minimum amount is not available in the pool, no new proposal can be created. This can range from 1M to 1B available tokens (full token unit)
* **Cooldown Minimum Block**: Number of blocks that must be created on the blockchain between each swap transaction, to avoid rapid sales. This can range from 10 to 100k blocks minimum between each sell swap
* **Liquidity Threshold**: Amount of tokens required before the liquidity process can start and add tokens to the community LP to improve stability. From 1M to 1B available tokens (full token unit)
* **Voting Period**: Number of block creations required on the blockchain for a vote to be finalized and closed if there have not been enough votes. This setting value can range from 10 to 100M blocks.

#### Emergency Proposals:

* **Emergency Consensus Reset**: Token holders can vote with at least 80% support to completely remove all seats from the consensus if they feel that the current members are not acting in the best interests of the ecosystem. This is a spontaneous vote that is applied as soon as at least 40% of the total supply has been stacked to vote.
* **Upgrade Contract Proposal:** Governance may propose to upgrade smart contracts in the ecosystem to address vulnerabilities, add new features, or improve functionality of a specific contract of the ecosystem. This type of proposal requires review and approval by the consensus mechanism before being executed. The proposal must achieve at least 80% support votes, with 40% of the total supply staked to initiate the vote. After a successful governance vote, the consensus mechanism will review, approve, and execute the upgrade to ensure alignment with the best interests of the ecosystem.

#### Consensus Proposals:

* **Consensus Seats**: Token holders have the ability to vote for the addition or removal of consensus seats indefinitely. The only exception is the founder's seat, which is perpetual and cannot be removed. The current consensus members must review the proposal, if there is only the Founder and no other member then the proposal is directly open to a governance vote.
  * For addition proposals, it is the wallet that wants to be added that must create the proposal.
  * For a removal proposal, anyone can propose any current member of the consensus.

#### Game Whitelisting Proposals:

* **Smart Game Contract Whitelisting**: The community vote to add specific smart game contracts from the whitelist, thus maintaining a level of quality control over the ecosystem's offerings games.

### Reward Distribution

In recognition of their engagement, voters receive a share of the tokens collected from smart game contracts, distributed in proportion to the number of tokens they stack during the vote period.

This reward share is recovered when voting participants unstake the tokens they initially blocked for voting, once the proposal is executed or finalized.

The share received is proportional to the number of tokens stacked by the wallet out of the total number of tokens stacked during the proposal.

#### Hypothetical example:

If during the vote, the allocated reward is 1M WBlocks tokens and a total of 10M tokens were used for the vote.&#x20;

Your wallet stakes and uses 2M tokens during the vote and receives at the end 20% of the reward, i.e. 200,000 tokens + the initial 2M. A total of 2.2M tokens.

