Sui Name Service (SuiNS) is not just decentralizing, it’s ensuring that those who are actively involved are rewarded. The goal of the transition to a decentralized governance model is to ensure that control of the protocol’s major decisions are in the hands of the community. The NS token plays a crucial role, allowing users to directly shape the platform’s future through governance.
While the ability to govern is important, it alone cannot sustain the level of activity required for a protocol that is so vital to the entire network’s experience. Incentives that encourage broad engagement are crucial for ensuring the success of SuiNS. Community participation in shaping the future of SuiNS is not only valued but rewarded.
Fostering community engagement
SuiNS has allocated 5% of the total NS token supply specifically for governance voting rewards. This commitment highlights SuiNS’s dedication to fostering an active and engaged community.
The NS token distribution allocates 5% of the total number of NS tokens towards governance rewards.
Each governance proposal will have a specific amount of NS tokens allocated to be distributed for rewards once the voting period is complete. Each individual NS token used in voting counts as one vote. So, a voting transaction from a wallet holding 100 NS tokens counts for at least 100 proposal votes. Governance rewards are distributed equally across all votes.
For example, assume that 50,000 NS tokens in total are rewarded once a proposal’s voting period is closed and 2,000 NS token holders participate in voting, casting a total of 500,000 votes. A user that casts a vote worth 100 of the total proposal votes would receive 10 NS tokens as a reward for governance participation.
Understanding governance proposals and voting
Major decisions on SuiNS, including changes to contracts and certain disbursements from the DAO protocol treasury, will be put up for a community vote following their proposal. All NS token holders will have the power to vote Yes, No, or Abstain on each proposal. The SuiNS Foundation itself will not be able to vote at the outset, ensuring that the community drives the decision-making process.
Voting requirements
Voting on SuiNS governance proposals will have a few requirements for the votes and proposals to be considered valid. Votes made by NS token holders must be completed through the official channels, details to be shared in the near future, and must be placed within the designated voting period for the proposal. A proposal’s voting period is established during the creation of the proposal and will be clearly defined.
Additionally, there will be a minimum required number of NS tokens participating in voting to reach quorum for a proposal’s outcome to be considered valid.
Token locking increases voting power
By default one NS token is worth one governance proposal vote. For those interested in increasing their voting power, there will be an option to lock NS tokens from one to twelve months. Each month that tokens are locked, they gain 10% increase in voting power.
A token locked for one month will have a voting power of 1.1 and a token locked for two months will have a voting power of 1.21.
Consider the previous example where 50,000 NS tokens are allocated as a reward pool for a governance proposal, and the total voting power that participated is 500,000. A user who voted with 100 NS tokens would receive 10 NS tokens as a reward, assuming their tokens were not locked.
However, if the user locked their 100 NS tokens for two months, their voting power would increase to 121. With this higher voting power, the user would earn an extra 2.1 NS tokens, for a total of 12.1 NS tokens.
This system not only encourages long-term commitment to the platform but also ensures that those who are long-term aligned with SuiNS are rewarded appropriately.
Embracing a decentralized future with SuiNS
SuiNS is setting a new standard for governance on Sui, that will eventually put governance control of the protocol in the hands of its community through the NS token. With 5% of the token supply allocated to governance rewards and major decisions made transparently, SuiNS empowers users to drive the platform’s evolution.
As we look ahead, stay tuned for the first governance vote happening this fall, where the community will have the opportunity to take the initial step in shaping the future of SuiNS!