Nebula Litepaper
  • 👉 Nebula Overview
    • Nebula Intro
      • What is Nebula?
      • The problem
  • Competitive Advantages
    • Innovative Collateralization with DEX LP Tokens
    • Cross-Chain
    • Yield Tranching Mechanism
    • Lending Pools
    • Smart Contract
    • Decentralized Governance
    • Community-Driven Governance
  • Comparison with Competitors (Expanded)
  • ⭐ Product Frature
    • User Roles
      • Supplier
      • Borrower
      • Governance & Participants
      • Developer
  • Protocol Architecture
    • Core Components
    • EVM Compatibility with Enhanced Security
    • Cross-Chain Interoperability via Nibiru’s IBC
    • Advanced Oracle Integration
    • Security
  • Nebula Product
    • Enhanced Liquidity(Upcoming)
    • Customizable Pool Creation
    • Cross-Chain CDP Contracts(Upcoming)
    • Yield Tranching(Upcoming)
  • Use Case(Sample)
  • ⭐ Tech Overview
    • Nebula Technology Overview
      • Consensus and Voting Mechanism
      • Validator-Based Oracle System
      • Risk Management and Security
        • Collateralization Requirements
        • Liquidation Mechanisms
        • Insurance Fund
        • Interest Rate Risk
        • Smart Contract Security
        • Market Risk
        • Governance Risk
        • Cross-Chain Risks
      • Interest Rate Model
        • Types of Interest Rates
        • Interest Rate Adjustments
        • Benefits of the Model
        • Example Scenarios
        • Governance Control
        • Competitive Advantage
      • Governance
        • Governance Framework
        • Token Utility in Governance
        • Governance Process
        • Key Governance Parameters
        • Governance Security
        • Governance Use Cases
        • Long-Term Decentralization
  • 💲Token
    • Token Utility
    • Tokenomics
    • Nebula Token Info
  • 💹GTM
    • Points System
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  1. ⭐ Tech Overview
  2. Nebula Technology Overview
  3. Governance

Token Utility in Governance

The Nebula token plays a central role in governance, empowering users with voting rights and incentivizing participation.

Voting Power

  • Determined by the number of tokens a participant holds or stakes in the protocol.

  • Staking Nebula tokens enhances voting power and earns participants additional rewards.

Proposal Submission

  • A minimum token threshold (e.g., 1% of total supply) is required to submit proposals.

  • This ensures that only serious and well-considered proposals are submitted.

Incentives for Participation

  • Active participants in governance earn rewards in Nebula tokens.

  • Rewards are distributed proportionally based on voting activity and the number of tokens staked.

Equalizing Influence: Quadratic Voting

  • Quadratic voting prevents large token holders from exerting disproportionate control by making the cost of additional votes increase quadratically.

  • This system amplifies the voice of smaller holders, promoting a more democratic decision-making process.

Community Engagement

  • By leveling the playing field, quadratic voting encourages broader participation in governance, strengthening the protocol's alignment with its user base.

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Last updated 5 days ago