XAR Network, the first mainnet built on Fantom consensus and its Statheros stack, recently had five on chain governance proposals submitted to it. We think it’s incredibly important for the community to familiarize themselves with what changes the proposals will bring if they are voted through, so that the stakers can make well-informed decisions.

I’ll start breaking down each and every governance proposals one by one based on the proposal ID#.

Proposal #1

Reduce proposal cost to 1,000FTM

This proposal suggests that we change the minimum deposit for a proposal from 1,000,000 FTM to 1,000 FTM. The reason that we want to have a proposal ‘’cost’’ in the first place is because we don’t want people to spam proposals without thinking them through first. We assume that the issuer of the proposal must have thought that 1,000,000 FTM may have been too high as a bottom line, and wants to have more engagement and inclusion from smaller holders too.

Proposal #2

Increase inflation rate to 5.0

Proposal #2 is described as ‘’Update Inflation Rate Change from 0.13 to 5.0'’ on the explorer. The model that XAR works with, collateralized sustainable staking rewards (CSSR) also known as sustainable staking, does not have inflation in the purest sense so a lot of community members asked us what this means. In this proposal, ‘’inflation’’ stands for the speed that the reward pool changes at, which is currently set to 0.13 (13%), which means that the APY will only swing between the floor of 6% and the ceiling of 30% at 13% per year.

The proposal changes this to 5.0 (500%) per year, allowing the protocol to swing between these two values quicker as stakers join and leave the network, and as more or less collateral is bonded.

Proposal #3

Decrease voting period to 7 days from 14 days

The third proposal touches upon the length of the voting period. In the 5 proposals that are currently running we see that the minimum amount of votes is quickly reached, within a span of days rather than weeks, which makes it highly unlikely that the results changes after the first 70% of votes is cast. If this proposal is voted through, it allows the chain to adapt quicker through short voting periods.

Proposal #4

Decrease stake unbonding time from 21 days to 24 hours

This proposal allows us to unbond our CSDT in 24 hours rather than in 21 days. Currently if you want to retrieve your FTM collateral by paying back your CSDT it will take you 21 days to unbond, this proposal if voted through will allow that to happen in a single day.

Proposal #5

Increase uftm ucsdt debt to $5,000,000 from $500,000

Last but not least is the proposal to increase the amount of uCSDT that can be minted from uFTM from 500,000$ to 5,000,000$. This will allow more people to stake on the network using CSDT that is collateralized by FTM.