EtherZero Autonomous Community Voting System Tutorial
The management structure of the EtherZero Community is designed in such a way that Community members could fully manage both the development of the community and its finances. One of the management tools is ETZVote – a system for making proposals by members of the community and voting for them.
EtherZero Community Budget includes funds used for the development of the EtherZero project, both entire and local communities in different countries, support marketing activities, support partners and developers, etc.
Any Community member can place an proposal – his own project, either from a group or from the local community, participate in a marketing campaign, develop a solution/product, pay for completed work useful for the Community, etc. But all these projects should be directed either to the EtherZero project development or to bring additional value to the whole project and the Community.
An important part of the EtherZero Community is masternode owners, who are also major investors in the EtherZero network and the project. That is why the right to vote is delegated to them. From the financial point of view, the biggest advantage of masternodes ownership is the ETZ price increase (increase in the value of assets invested to masternodes). Accordingly, the main motivation in voting for masternodes will be the assessment that the proposal is beneficial for the growth of the coin price. Therefore, when the initiator publishes his proposal, he must first make sure that the proposal can convince the owners that the implementation of the proposed project or actions will play a relevant role in the development of the project and the increase in the value of assets and the allocated budget will be used efficiently.
Each vote takes place at the end of a cycle of 1.2 million blocks, which is about three weeks. The voting process and budget allocation is managed by this smart contract.
Websites for proposals placement and voting
Currently, there are two sites working with the smart contract, providing the functionality of publishing proposals, executing votes, reading proposals, getting information about the current Community budget, requested and used budgets, and other additional information: etzvote.com and emm.etherzero.pro/etz-voting
This article describes the operation of the EMM-based voting system.
Proposals Discussion Forum
http://forums.etzvote.com – on the Community forum, the initiator may first give a detailed description for his proposal, showing a concrete executive plan, explaining the costs, indicating the responsible individuals and performers, conduct discussions with other community members, clarify details, optimize his proposal, fully discuss and coordinate it with community members and masternodes owners, and bring his proposal to the necessary level, so that the masternodes vote for him.
Community Budget Management via Smart Contract
The rules for voting and budget management of the Community are stated in the smart contract:
Community Governance Contract Address: 0x4761977f757e3031350612d55bb891c8144a414b
For each proposal, you can vote “Agree” and “Against”.
Every 25% of the coins earned by the masters are sent to the Community budget. Since the reward for 1 block is 0.45 ETZ, then, respectively, 0.1125 ETZ goes to the Community budget from each block.
The publication of the proposal costs 10 ETZ (so that, at least, there are no empty proposals). These coins are also added to the Community budget and will be used for approved proposals.
The EMM Voting website shows in real time the current budget balance available during this period:
Proposal acceptance policy
For a proposal to be accepted and approved by the Community it should meet the following conditions:
- The number of registered votes “Agree“ must exceed the number of votes “Against” by 10%
- The number of registered votes “Agree“ must be more than 10% of the online masternodes number at the time of the votes counting
- When the previous conditions are fulfilled and if there are several competing proposals within a limited budget, those proposals that have a greater number of “For” votes will receive the priority. Then the proposals are approved, which are placed according to their requested amounts within the available budget. Proposals that have fewer “For” votes or lacked a budget are rejected. The remaining unused budget is transferred to the next period
Consider an example:
Suppose that the proposals following the voting are arranged alphabetically, where A has the most votes, D is the least, and we have the following sequence of proposals: ABCD, where each proposal gains more than 10% of the operating masternodes number.
Scenario 1: Available budget 100 ETZ, 'A' requested 100 ETZ, then 'A's proposal will be approved and receive this budget, and the rest of the proposals will be rejected.
Scenario 2: Available budget 100 ETZ, 'A' has requested 40 ETZ, 'B' has requested 80 ETZ, 'C' has requested 40 ETZ, then 'B' will be rejected and 'C' approved, 20 ETZ will be transferred to the next period.
Operations performed in the voting system
Publication of the proposal
After careful preparation of the proposal, users can first create a topic for discussion on the EtherZero forum to present their project and plan its implementation, respond to doubts of the community and convince the masternodes to approve their proposal. When receiving initial support, the initiator of the proposal may publish it in the system. At the same time, it is necessary to prepare the following content: the name of the proposal, a detailed proposal, the ETZ address to receive the budget (if the proposal is approved) and the requested budget.
On the EMM Voting website, at the top right, press the Add proposal button and fill the fields in the opened form in:
Very carefully indicate the ETZ address to get the budget for the proposal!
Since the publication costs 10 ETZ per proposal, therefore this amount should be prepared with the indicated address.
After clicking the Save button, the system will request to enter yourprovate key and execute a transaction on transferring 10 ETZ to the address of the smart contract voting system – the proposal will be displayed in the main list.
If there are concerns about the use of a private key in this application – execute a transaction through any wallet (Web Wallet or GoETZ) with the selected parameters of the transaction.
There is no possibility to cancel or change a published proposal – it is written in the blockchain. Therefore, be careful forming the proposal, the project details and the evaluation of its budget.
You can vote only from the masternode address, which is online more than 1.2 million blocks. You can view and evaluate the fulfillment of this condition for a specific masternode on the site: emm.etherzero.pro/masternode-info
“Masternode Address” is the ETZ address from which a transaction of 20,000 ETZ was executed when the Masternode is activated.
Masternode can vote only once in each voting cycle and can only vote for open proposals.
There is no possibility to cancel your vote! It is done only once. Therefore, carefully read all the published proposals, communicate with the initiators and other members of the community, look at other projects on the market, learn how the crypto industry and EtherZero are developing, what would you like to see, provide your recommendations, etc. – and only then make a choice and vote!
If you want to vote for the proposal, click the “Agree” (Accept this proposal) or “Against” (Decline this proposal) button under the proposal:
The system also displays the number of already registered votes in the Status field and in the buttons.
Enter the private key and click Vote! – the transaction of the corresponding vote will be executed. If there are concerns about using a private key in this application, perform the transaction through a Web Wallet or GoETZ with indication of the displayed transaction parameters.
Be careful! Transaction amount = 0 ETZ!
Delegation of voting authority
Masternode can entrust its voice to other ETZ addresses. After masternode delegates the vote, only the Principal can now vote (to whom the vote was delegated). If the trusted address was specified in this field and the delegation was performed, the power of attorney can then be canceled, and the authorized person will no longer be able to vote thereafter.
Specify on etzvote.com a trusted address in the form of voting authority delegation and click Delegate:
System Proposal Vote Command – copy this value.
Log into an EtherZero wallet (Web Wallet or GoETZ) with the masternode address login and execute a zero-sum (o ETZ) transaction to the smart contract address 0x4761977f757e3031350612d55bb891c8144a414b indicating the Proposal Vote Command value copied in the previous step to the Transaction Data field.
Getting the budget requested by the proposal
Upon completion of the voting cycle, the system calculates which proposals must be approved in accordance with the available budget and registered votes. If the proposal has been approved and a budget has been allocated for it, then in order to receive these funds, the initiator must send a zero transaction to the contract address 0x4761977f757e3031350612d55bb891c8144a414b from the address where the proposal was formed.
Video guide to the voting system
Video guide will be published soon.
Community voting system improvement
Since the system is still developing, we will be glad to receive any comments and suggestions that you can send to the address: email@example.com