Voting & Delegation

How DUAL holders vote on proposals and delegate their voting power

Dualis Finance uses a token-weighted voting system where each DUAL token represents one unit of voting power. Holders can vote directly on proposals or delegate their voting power to a trusted representative. The system supports three voting options -- For, Against, and Abstain -- and uses snapshot-based balance tracking to prevent manipulation.

Voting Options

When a proposal enters its Active phase, all eligible DUAL holders can cast their vote using one of three options:

For -- Indicates support for the proposal. For votes count toward both the quorum calculation and the approval majority.
Against -- Indicates opposition to the proposal. Against votes count toward the quorum but reduce the approval ratio.
Abstain -- Indicates neither support nor opposition. Abstain votes count toward the quorum requirement but do not influence the For/Against ratio. This allows holders to contribute to quorum without taking a position on contentious issues.

A proposal succeeds when it meets two conditions: the total votes cast (For + Against + Abstain) meet the quorum threshold, and the For votes exceed the Against votes (simple majority).

Voting Power

Voting power is determined by a holder's DUAL balance at the snapshot block. When a proposal transitions to Active status, the system records a snapshot of all token balances at that block height. This snapshot is immutable for the duration of the voting period, meaning that subsequent transfers or trades do not affect voting eligibility or weight.

Snapshot Mechanics

Voting power is locked at the block when the proposal becomes Active. Buying or selling DUAL after the snapshot has no effect on your ability to vote on that particular proposal.

Staked DUAL carries a 1.5x voting power multiplier. If a holder has 1,000 DUAL staked at the snapshot block, their effective voting power is 1,500. This multiplier incentivizes long-term protocol participation and aligns voting influence with economic commitment.

Delegation System

DUAL holders who prefer not to vote directly can delegate their voting power to another address. Delegation transfers voting power without transferring token ownership -- the delegator retains full custody of their DUAL tokens and can revoke the delegation at any time.

Key properties of the delegation system:

One-to-one delegation -- Each address can delegate to exactly one delegate at a time. Changing delegates immediately transfers all voting power to the new delegate.
Non-transitive -- Delegated voting power does not cascade. If Alice delegates to Bob, and Bob delegates to Carol, Carol does not receive Alice's votes. Alice's power remains with Bob.
Self-delegation -- By default, all DUAL holders are self-delegated. To vote on proposals directly, no explicit delegation action is required.
Instant revocation -- Delegators can revoke and re-delegate at any time. Changes take effect immediately for future proposal snapshots but do not affect proposals where the snapshot has already been taken.

Active Delegates

The Dualis governance dashboard displays active delegates along with their voting history, participation rate, and total delegated power. This transparency helps delegators make informed choices.

Quorum Requirements

Each proposal type has a distinct quorum threshold, expressed as a percentage of the total DUAL supply. The quorum must be met for a proposal to pass, regardless of the For/Against ratio. This ensures that significant protocol changes cannot be enacted by a small number of token holders.

Proposal Type	Quorum	Rationale
PARAMETER_CHANGE	10%	Routine adjustments to existing parameters require moderate participation.
NEW_POOL	15%	Adding new markets introduces risk and warrants broader consensus.
POOL_DEPRECATION	20%	Removing a market affects active positions and requires strong community support.
TREASURY_SPEND	25%	Deploying treasury funds demands the highest standard of community alignment.
EMERGENCY_ACTION	5%	Time-critical safety measures must be executable with minimal quorum.
PROTOCOL_UPGRADE	20%	Contract upgrades carry significant risk and require substantial participation.

Changing Your Vote

Voters may change their vote at any point during the active voting period. The most recent vote cast by an address is the one that counts at the time the voting period closes. This flexibility allows participants to adjust their position as discussion evolves and new information emerges during the deliberation period.

Off-Chain Signaling

Before submitting a formal on-chain proposal, authors are encouraged to publish a discussion post in the Dualis governance forum. Off-chain signaling polls allow the community to gauge sentiment, refine proposal parameters, and identify potential issues before committing to the on-chain governance process. While signaling votes are non-binding, proposals with strong off-chain support historically achieve higher quorum participation.