Theta News
Theta Network Shares Sneak Peek of Upcoming TDROP Governance Portal
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Last month, decentralized video streaming blockchain Theta announced the TDROP token launch. The network shared a few details about the token, among them that TDROP would co-exist with the existing tokens, including THETA and TFUEL. Theta also confirmed that TDROP would offer holders staking and VIP benefits on the ThetaDrop NFT platform.
This week, the network divulged more details on the token around the upcoming governance feature. In a blog post published on Tuesday, Theta went into detail about how TDROP holders would use the token to vote on the governance of TDROP.
“TDROP stakers will gain voting rights for proposed changes to TDROP parameters like NFT Liquidity Mining rates. Each user's voting rights for a given proposal will be equal to their share of staked TDROP as a percentage of the total TDROP staked. […] TDROP holders will be responsible for creating new proposals to be voted on,” a section of the blog post read.
Taking a similar governance path as Compound and Uniswap
Notably, TDROP governance will be on-chain and facilitated by smart contract calls. This is the mechanism leveraged by projects such as Uniswap.
Theta explained that governance features to be implemented on the blockchain would use the community proposals as a ‘testbed.' A new governance web interface will allow the creation of new proposals. Voting will also be done via the same interface.
Users can float motions to change TDROP parameters by drafting proposals and outlining the implementation details. They should also share relevant information explaining why TDROP stakers should consider voting in favor of their proposals.
The Theta Labs team specified that users looking to submit proposals must have 5 million TDROP staked. This figure is not fixed as Theta included a provision to adjust it in the future if it is not deemed suitable.
“Initially, there will be a requirement to have 5 million TDROP staked in order to create a new proposal. This requirement may change going forward depending on how effective it is in facilitating beneficial proposals. Each staked TDROP represents 1 vote. For example, if you stake 500,000 TDROP out of a total 2 billion staked TDROP, you have 500,000 votes out of total possible votes of 2 billion.”
Theta Explorer data shows that 2.173 billion TDROP tokens have been staked so far.
Submission of the proposal can be made through the interface or by connecting a user's wallet via MetaMask. The latter, however, doesn't imply the transfer of TDROP tokens to a MetaMask wallet.
Criteria for passing proposals
The period of voting on a proposal is by default set to 100,800 blocks translating to about seven days. For new proposals to be passed, they must meet two conditions. First, they have to get more ‘in favor' votes than ‘against' votes. The votes ‘in favor' must also be more than 500 million.
The network considers TDROP governance as the last and yet most crucial stage of making the network fully decentralized.
“In addition to giving the community power over TDROP, it [TDROP governance] will serve as the testbed for on-chain governance of Theta blockchain itself, as the final step in decentralizing Theta blockchain.”
Theta Labs didn't reveal the exact date when the TDROP governance portal will launch but hinted the target release date will be coming next month.
“The target launch for the TDROP governance portal is coming in April, so we are excited to see the first votes happening soon! Further documentation and instructions will be available as we get closer to the release date so stay tuned.”
To learn more about Theta, visit our Investing in Theta guide.
