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Governance

Learn about the governance model of the CognideX platform.

Governance Model - Open Governance​

  • On-chain Governance: CGDX holders can vote on proposals using the CognideX platform.
  • Off-chain Governance: CGDX holders can participate in off-chain discussions and decision-making processes.

There are three main components of the CognideX governance model:

  1. Multi-signature Wallets: CGDX holders can use multi-signature wallets to secure the CognideX treasury.
  2. Open Governance: CGDX holders can submit proposals and vote on proposals.
  3. Transparent Governance: All governance decisions are transparent and verifiable on the CognideX platform.

This governance model is designed to be democratic, inclusive, and dynamic, with no first class powers. CGDX holders can propose changes to the governance model and vote on them. CGDX holders can also participate in governance regardless of their stake in the CognideX platform.

Governance Features​

Community centric governance model with open participation.

  1. Transparent Governance: All governance decisions are transparent and verifiable on the CognideX platform and can be audited by anyone.
  2. Democratic Governance: CGDX holders can vote on proposals based on their stake in the CognideX platform.
    • Quadratic Voting: CGDX holders can use quadratic voting to vote on proposals.
    • Liquid Democracy: CGDX holders can delegate their voting power to other CGDX holders.
    • Sybil Resistance: CGDX holders can prevent sybil attacks by requiring identity verification for voting.
  3. Inclusive Governance: CGDX holders can participate in governance regardless of their stake in the CognideX platform.
    • Community Governance: Hold a minimum amount of 1 CGDX token to participate in governance.
  4. Dynamic Governance: CGDX holders can propose changes to the governance model and vote on them.

Governance Proposals​

Any CGDX holder can submit a governance proposal.

  • Staking Required:

    • All proposals require a certain amount of CGDX tokens to be staked.
    • If the proposal is accepted, the staked tokens are returned to the submitter and an additional 25% of the staked tokens are distributed to the voters from the treasury.
    • If the proposal is rejected, 25% of the staked tokens are burned, and the other 50% are returned to the submitter and the remaining 25% are distributed to the voters. (This is to prevent spam proposals)

  • Proposal Quorum & Passing Threshold:

    • A minimum of 10,000 CGDX tokens must be staked to submit a proposal.
    • Proposals require a minimum quorum of 3% of the total CGDX supply to be considered valid.
    • The passing threshold (percentage of affirmative votes) needed for a proposal to be accepted is 60%.
    • If the proposal does not meet the quorum or passing threshold after the voting period, it is automatically rejected.

  • Confirmation Period:

    • After the proposal meets the quorum and passing threshold, there is a confirmation period of 3 days.
    • During this period, the proposal needs to maintain the passing threshold to be executed.

  • Proposal Review:

    • Proposals are reviewed by the CognideX community.
    • The community can discuss the proposal and provide feedback before voting on it.

  • Proposal Execution:

    • If a proposal is accepted, it will be executed by the whitelisted addresses.
      • Whitelisted addresses are determined by the CognideX community.
      • Tokens are distributed to the whitelisted addresses based on the proposal.
    • If a proposal is rejected, it is not executed.

Governance Voting​

CGDX holders can vote on proposals using the CognideX platform.

  • Voting Period: 1 week

    • CGDX holders can vote on proposals during the voting period.
    • CGDX holders can lock their tokens to vote on proposals and cannot unstake them until the voting period is over - to prevent vote manipulation.
    • The voting period is determined by the CognideX community.

  • Voting Power:

    • CGDX holders can choose how much of their stake to use for voting.
    • Quadratic voting is used to determine the voting power of each CGDX holder.

  • Voting Rewards:

    • CGDX holders can earn rewards for voting on proposals.
    • Rewards are distributed based on the number of votes cast by each CGDX holder.

  • Voting Delegation:

    • CGDX holders can delegate their voting power to other CGDX holders.
    • Delegated votes are counted as votes cast by the delegate, and the delegate receives the rewards.

Data Pool Governance​

Every Data Pool has its own governance model.

  • Data Providers must stake ALL the CGDX tokens they have earned from contributing data to the take part in the governance of their Data Pool.
  • Data Providers can submit proposals within their Data Pool, which are limited to the scope of the Data Pool.

Data Pool Governance Proposals​

Only 4 types of proposal can be submitted within a Data Pool.

  • Listing Proposal: Propose to list the data pool on any marketplace.
  • Data Analysis Proposal: Propose to analyze the data pool and provide insights.
  • Data Pool Merging Proposal: Propose to merge the data pool with another data pool.

Data Pool Governance Voting​

No Incentives for voting on Data Pool Governance Proposals.

  • Voting Period: 3 days

    • Data Providers can vote on proposals during the voting period.
    • Data Providers can lock their tokens to vote on proposals and cannot unstake them until the voting period is over.
    • The voting period is determined by the Data Pool governance model.

  • Voting Power:

    • Data Providers can choose how much of their stake to use for voting.
    • One vote per CGDX token staked.

Treasury​

The CognideX treasury is managed by the governance model.

  • Funding:
    • The treasury is funded by the initial token distribution.
    • The treasury is funded by the revenue generated by the CognideX platform.
      • 0.5% of the revenue generated by the CognideX platform is transferred to the treasury in a monthly basis.
    • The treasury is funded by the Token Buy Back mechanism.
  • Management:
    • Used to fund development, marketing, and community initiatives.

Token Buy Back​

The CognideX treasury will buy back CGDX tokens from the open market to distribute as rewards for governance participation.

  • Conditions:
    • When treasury is below 1% of the total supply.
    • When the price of CGDX is below the price at the last buy back.
    • When the governance participation rate is below 50% for 3 consecutive months.
  • Buy Back Amount:
    • Fueling the treasury with 1% of the total supply.
    • Distributing the remaining tokens as rewards for governance participation.
  • Buy Back Frequency:
    • Once every 3 months.
    • The frequency can be adjusted by governance proposals.

Burning Mechanisms​

The CognideX treasury will burn CGDX tokens to reduce the total supply.

  • Conditions:
    • When the treasury is above 5% of the total supply.
    • When the price of CGDX is above the price at the last burn.
    • When the governance participation rate is above 90% for 3 consecutive months.
  • Burn Amount:
    • Burning 5% of the treasury balance.
    • The burned tokens are removed from the total supply.
  • Burn Frequency:
    • Once every 6 months.
    • The frequency can be adjusted by governance proposals.