Governance Voting: Part II
Suppose an asset has surpassed the upper limit that is defined when the asset has been set up. In that case, the asset should be frozen, which means that the asset can no longer be issued and that long tokens can be burned at the price of the upper limit. Short tokens are becoming worthless.
If users consider the upper limit to be breached, IPT stakers with more than 100k staked IPT can initiate a voting process in which all token holders can vote and decide if the upper limit has really been breached. The voting process will be open for 7 days. Every token holder can participate in this process, with each staked token counting for one vote.
After the 7-day voting period, no more votes will be accepted, and anybody can stop the voting at any time. Suppose a majority of voters agree that the asset has exceeded its upper limit. In that case, the asset will be frozen, and all “yes” voters will receive voting points. If the majority decides that the asset has not broken its upper limit, trading will resume as usual, and “no” voters will be rewarded voting points. Thus, voting points are the basis for the distribution of IPT token rewards for DAO governance participation.
Each asset has an expiration date that is set when it is created. Following the asset’s expiration, a voting procedure can be initiated, allowing governance token holders to vote on the asset’s price at the moment of expiration. This will determine the price, which will be dependent on the value of long and short assets. When tokens are burned, this value is used to determine the amount the user receives.
No additional votes will be taken after the 7-day voting period has ended, and anyone can close the voting at any time. The stake weighted average price of all votes will be used to compute the expiry price.