Uses component: CP4
Authors: @Rhano @ImdioR
Contributors: @WilliamFreude @lucasvo @cassidy @Kate_Bee
Technical/non-technical proposal: Technical
Impacts/modifies: CP0, CP1, CP2, CP3, CP4, CP5, CP58
Date proposed: 2024-01-04
Short Summary
Transition of our onchain governance from Gov1 to OpenGov.
High-level objective
To make a soft transition to OpenGov - while keeping the Gov1 pallets (including the council) for a transition period of 3 months - using the tracks and parameters proposed below, based on the discussion here.
Background
The onchain governance mechanism, Gov1, served as the established standard for both Kusama and Polkadot (and the parachains) until the introduction of OpenGov in November 2022 and June 2023, respectively. Subsequently, a number of parachains have also undergone migration. Sustaining Gov1 independently, without the support of the ecosystem, would necessitate a substantial allocation of engineering resources. Moreover, relying on a centralized collective, exemplified by the council, is not ideal either. So we would have to address these challenges at some stage.
Description of Activity
The GCG proposes the following tracks and parameters for our OpenGov setup. The Whitelisted Caller track will be managed by a Technical Committee that will consist of people with knowledge and insight in the technical aspect of Centrifuge Chain. They will be a mandated group and a separate proposal will be made for their mandate request.
Tracks
Below is an overview of the 6 suggested tracks and their descriptions.
| Track | Description | Referendum examples |
|---|---|---|
| Root | Track with the highest privilege | Runtime upgrades, Technical Committee management |
| Whitelisted Caller | Track used for referenda that have been whitelisted by the Technical Committee and can execute with Root privileges | Fast-tracked operations |
| Pool Admin | Custom track for pool management | Launching a pool on Centrifuge |
| Treasurer | Track used for asking for funding from the treasury | Treasury proposal |
| Referendum Canceller | Track used for cancellation of incorrectly submitted referenda, Decision Deposit is refunded | Wrong referendum |
| Referendum Killer | Track used for killing malicious referenda, Decision Deposit is slashed | Malicious/harmful referendum |
All tracks follow this flow, but with different parameters:
Parameters
Below are the parameters for each track, specification of Approval and Support and their curves. Click on the 
to the left to expand.
Root
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Root | 2 | 300,000 CFG | 6 hours | 14 days | 12 hours | 1 day |
Approval (linear): 100% → 50%
Support (reciprocal): 50% → 0.88%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.85 % | 42.86 % | 171,428,571 |
| 2 | 99.70 % | 37.50 % | 150,000,000 |
| 3 | 99.55 % | 33.33 % | 133,333,333 |
| 24 | 96.43 % | 10.00 % | 40,000,000 |
| 312 | 53.57 % | 0.94 % | 3,773,585 |
| 324 | 51.79 % | 0.91 % | 3,636,364 |
| 336 (14 days) | 50.00 % | 0.88 % | 3,508,772 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Whitelisted Caller
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Whitelisted Caller | 20 | 1,000 CFG | 10 minutes | 7 days | 10 minutes | 10 minutes |
Approval (linear): 100% → 50%
Support (reciprocal): 50% → 0.01%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.70 % | 1.92 % | 7,692,308 |
| 2 | 99.40 % | 0.98 % | 3,921,569 |
| 3 | 99.11 % | 0.66 % | 2,631,579 |
| 24 | 92.86 % | 0.08 % | 332,779 |
| 72 | 78.57 % | 0.03 % | 111,049 |
| 120 | 64.29 % | 0.02 % | 66,644 |
| 168 (7 days) | 50.00 % | 0.01 % | 47,608 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Pool Admin
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Pool Admin | 5 | 1,000 CFG | 1 hour | 7 days | 1 hour | 1 hour |
Approval (linear): 100% → 70%
Support (reciprocal): 50% → 0.59%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.82 % | 33.33 % | 133,333,333 |
| 2 | 99.64 % | 25.00 % | 100,000,000 |
| 3 | 99.46 % | 20.00 % | 80,000,000 |
| 24 | 95.71 % | 3.85 % | 15,384,615 |
| 72 | 87.14 % | 1.35 % | 5,405,405 |
| 120 | 78.57 % | 0.82 % | 3,278,689 |
| 168 (7 days) | 70.00 % | 0.59 % | 2,352,941 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Treasurer
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Treasurer | 2 | 10,000 CFG | 6 hours | 14 days | 12 hours | 12 hours |
Approval (linear): 100% → 70%
Support (piece wise linear): 50% → 1%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.91 % | 49.84 % | 199,346,667 |
| 2 | 99.82 % | 49.67 % | 198,693,333 |
| 3 | 99.73 % | 49.51 % | 198,040,000 |
| 24 | 97.86 % | 46.08 % | 184,320,000 |
| 312 | 73.21 % | 1.00 % | 4,000,000 |
| 324 | 71.07 % | 1.00 % | 4,000,000 |
| 336 (14 days) | 70.00 % | 1.00 % | 4,000,000 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Referendum Canceller
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Referendum Canceller | 20 | 50,000 CFG | 1 hour | 7 days | 1 hour | 10 minutes |
Approval (linear): 100% → 70%
Support (reciprocal): 50% → 0.59%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.82 % | 33.33 % | 133,333,333 |
| 2 | 99.64 % | 25.00 % | 100,000,000 |
| 3 | 99.46 % | 20.00 % | 80,000,000 |
| 24 | 95.71 % | 3.85 % | 15,384,615 |
| 72 | 87.14 % | 1.35 % | 5,405,405 |
| 120 | 78.57 % | 0.82 % | 3,278,689 |
| 168 (7 days) | 70.00 % | 0.59 % | 2,352,941 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Referendum Killer
| Max Deciding | Decision Deposit | Prepare Period | Decision Period | Confirmation Period | Enactment Period | |
|---|---|---|---|---|---|---|
| Referendum Killer | 20 | 75,000 CFG | 1 hour | 7 days | 1 hour | 10 minutes |
Approval (linear): 100% → 70%
Support (reciprocal): 50% → 0.59%
Click here for specification of Approval and Support over time
| Hours | Approval (linear) | Support (reciprocal) | Support in CFG |
|---|---|---|---|
| 0 | 100.00 % | 50.00 % | 200,000,000 |
| 1 | 99.82 % | 33.33 % | 133,333,333 |
| 2 | 99.64 % | 25.00 % | 100,000,000 |
| 3 | 99.46 % | 20.00 % | 80,000,000 |
| 24 | 95.71 % | 3.85 % | 15,384,615 |
| 72 | 87.14 % | 1.35 % | 5,405,405 |
| 120 | 78.57 % | 0.82 % | 3,278,689 |
| 168 (7 days) | 70.00 % | 0.59 % | 2,352,941 |
Support in CFG has been calculated with an Electorate of 400M CFG.
Change or improvement
This proposal, if passed, will make our onchain governance more decentralised, by removing the council so there are no entities that hold special powers over the network.
The Centrifuge Treasury will also fully be in the hand of all token holders, rather than being administered by a council.
However, these changes will also mean that CFG token holders, as a collective, will have more responsibility in terms of actively voting on governance proposals.
It will also bring more flexibility as it will allow us to
- customise the lifecycle of each type of referendum
- delegate tokens to vote on specific tracks
Alignment to the mission of Centrifuge DAO
Given that Centrifuge operates as a decentralized organization, it is inherent that our governance aligns with this as well. The submission and outcome of all onchain proposals in OpenGov will be entirely in the hands of CFG token holders and not single entities.
Next steps
After the RFC period, the proposal will be submitted to GitHub, followed by an onchain submission through a Runtime Upgrade with the defined tracks and parameters and all CFG token holders can vote on this proposal. This will most likely happen sometime towards the end of Q1 2024.
If the proposal passes, the following tasks will need to be done asap post-migration:
- Notify SubSquare to update the UI to support OpenGov referenda
- Notify Subscan to update the UI to support OpenGov referenda
- Notify Nova Wallet to update the UI to support OpenGov referenda
- Update governance documentation