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Governance - Overview

This page provides an overview of the On-chain Governance module that will be available on the v1.6.x release.

Table of contents

Interacting with the on-chain governance SCInteracting with the governance system smart contract.


The MultiversX network is able to handle on-chain governance proposes by issuing special types of transactions. This was implemented as a mean for further increasing the decentralization of the decision-making process.

Anyone can create a proposal using their wallet and issuing a special type of transaction specifying an identifier, a starting epoch and an end epoch.

Users that staked EGLD will be able to cast votes upon opened proposals. The voting power is proportional with the staked value and is computed as voting_power = staked_value (linear voting).

Implementation details

Each proposal costs 1000 EGLD that will be locked during the voting of the proposal. If the proposal is either rejected or accepted, the entire locked sum can be unlocked & withdrawn. If the proposal do not pass, 10 EGLD will remain locked in the governance smart contract as a penalty fee. The proposal costs around 51 million of gas units.

There are 4 types of votes: Yes, No, Abstain and Veto. Each of the vote costs around 6 million of gas units.

A user can create any number of proposals as long as it pays the locking fee & the gas used for the transaction. The proposal can be closed in any epoch following the provided end epoch.

The quorum is computed as the sum of the staked EGLD for all addresses that cast votes.

The votes will be added for each category (Yes, No, Abstain and Veto). The vote is computed as vote = total_staked_value for each address that cast a vote.

A proposal can pass only if all conditions are met:

  • the quorum value is at least the minimumQuorumThresholdPercentage * total staked value held by the staking contracts;
  • the Yes value > No value (simple majority);
  • the Yes value is at least the minimumPassThresholdPercentage * sum of votes on all 4 categories.
  • the Veto value did not reach the minimumVetoThresholdPercentage * sum of votes on all 4 categories;


Let's suppose we have the following addresses that cast the following votes:

  • alice: staked value 2000 EGLD that vote Yes
  • bob: staked value 3000 EGLD that vote Yes
  • charlie: staked value 4000 EGLD that vote Yes
  • delta: staked value 1500 EGLD that vote No

The quorum in this case will be a value (2000+3000+4000+1500) * 10^18 = 10500 * 10^18.

The Yes category will hold the value 2000 * 10^18 + 3000 * 10^18 + 4000 * 10^18 = 9000 * 10^18
The No category will hold the value 1500 * 10^18 The Abstain and Veto categories will both hold 0. The total voted value is 9000 * 10^18 + 1500 * 10^18 + 0 + 0 = 10500 * 10^18

Supposing the total staked value in the system is 20000 EGLD and the minimum quorum threshold percentage is 20%, then the minimum quorum value is 20% * 20000 = 4000 EGLD.

The following list contains true sentences:

  • the quorum value (10500 EGLD) is larger than the minimum quorum (4000 EGLD)
  • Yes value (9000 * 10^18) is larger than the No value (1500 * 10^18)
  • Yes value (9000 * 10^18) is larger than the pass threshold (50%) * total voted value (10500 * 10^18) which is 5250 * 10^18
  • the Veto did not reach 33% of the total vote value because it was 0

To sum it all, the proposal passed.