Skip to main content

Governance (DAO)

Introduction​

Governance on XFI Console is a comprehensive decentralized governance system that allows any community member to influence strategic and operational decisions within the CrossFi ecosystem. Based on MPX (Mint Power) tokens, the Governance module ensures transparency, efficiency, and democracy in decision-making processes through smart contracts.

Key Features

CrossFi Governance is powered by MPX tokens and enables community-driven decision making through transparent, on-chain voting mechanisms.

Interactive Demonstration​

Core Goals and Principles​

🏛️ Decentralization

Power is transferred directly to the community, without centralized governing bodies.

🔍 Transparency

Every action, from creating a proposal to executing it, is recorded on the blockchain, enabling audits and analysis.

🎯 Encouraging Participation

Economic and social incentives are aimed at increasing participant responsibility and actively involving them in the decision-making process.

🛡️ Security and Stability

Mechanisms are introduced to protect against abuses and ensure network stability even under changing market conditions.

These principles allow the system to adapt to changes while remaining flexible and reliable.

Participant Roles​

In the CrossFi ecosystem, formal DAO governance is carried out exclusively by participants holding MPX tokens. These tokens grant the right to vote and make key decisions in the system.

👥 Delegators

Participants who hold MPX tokens and delegate their voting rights to chosen validators.

Key Features:

  • Direct Influence: Participate in votes, influencing strategic decisions
  • Economic Motivation: Receive rewards from validators (XFI, esXFI, WETH)
  • Risks: Unreliable validators may affect income and voting weight

⚡ Validators

Key participants responsible for network operation and security.

Key Features:

  • Security Function: Monitor network operation and prevent attacks
  • Active Governance: Direct voting rights on protocol decisions
  • Economic Support: Receive commission fees and bonuses
Community Participation

Active community members who don't hold MPX can still contribute through discussions and proposal ideas, though they cannot vote directly in the DAO.

Governance Process​

The governance process begins with creating proposals, which can be initiated by any participant holding a minimum amount of MPX. Proposals may address protocol upgrades, treasury fund distribution, or be text-based initiatives.

Voting Options​

When voting on proposals, MPX holders can choose from four options:

  • Vote for: Support the proposal
  • Vote against: Oppose the proposal
  • Abstain: Refrain from choosing
  • Veto: Decisive rejection that can lead to automatic dismissal
Voting Mechanics

If a delegator doesn't participate in voting, their vote is automatically counted via their chosen validator. However, if the delegator votes independently, their vote takes precedence.

Protection and Incentive Mechanisms​

Several special mechanisms are in place to protect against abuses and ensure network stability:

🔒 Security Measures

  • Validator Limit: Capped at 64 validators
  • Sentry Nodes: Protection against DDoS attacks
  • Slashing: Penalties for rule violations

💰 Economic Incentives

  • Regular payouts for participation
  • Bonuses for long-term engagement
  • Additional rewards for active governance

Submitting Proposals and Voting in Practice​

Creating a Proposal​

1
Access XFI Console
2
Open GOV
3
Choose a Type
4
Fill Out Parameters
5
Make a Deposit
6
Publish
Step 1 of 6

Access XFI Console

Ensure you have at least 1 MPX in your wallet.

Voting Process​

1
View Details
2
Choose a Voting Option
3
Change Vote
4
Track Results
Step 1 of 4

View Details

In the GOV tab, select the proposal of interest and review its current status.

Frequently Asked Questions​

Voting Requirements & Access

  • Can I vote if I have very few MPX?
    Yes, but your voting weight will be lower compared to large holders. If you wish, you can delegate your tokens to a reliable validator.

  • Can I participate in Governance without MPX tokens?
    Direct voting is unavailable; however, you can submit ideas, join discussions, help shape public opinion, and engage in trading activities.

Validator Management

  • What if a validator acts against my interests?
    Re-delegate your delegated tokens to another validator after the "unbonding" period.

  • What are the penalties for abuses?
    If a validator breaks the rules, they may be slashed—meaning they lose part of their staked tokens. If a proposal fails due to veto thresholds, the initiator's deposit is not returned.

Proposal Outcomes
  • What happens if there are too many "No with veto" votes?
    The proposal is rejected, and the initiator's deposit is withheld by the system.

The Future of Governance in CrossFi​

Development Roadmap

CrossFi Governance continues to evolve with planned improvements including enhanced analytics, better UX, and multi-chain integration capabilities.

📊 Analytical Expansion

Adding public monitoring dashboards for in-depth analysis of votes, proposals, and statistics.

🔗 Multi-Chain Integration

Interacting with other networks to attract new users and tokens to the ecosystem.

In Conclusion​

Governance on XFI Console is the foundation of decentralized management in the CrossFi ecosystem. Combining transparent processes, smart contract–based automation, and the active engagement of all community layers ensures the system's reliability and flexibility. This approach not only enables a prompt response to changes but also stimulates innovation, contributing to the platform's sustainable development.