In-depth interpretation of ChainX on-chain governance

ChainX 2.0 has been successfully upgraded to Substrate 2.0, adding the new governance module, which allows for on-chain governance proposals and referendums. The ChainX network adopts a tricameral governance structure similar to Polkadot, including a Referendum Chamber, Council, and Technical Committee.

In addition to these, ChainX will introduce the Treasury and X-Association. The Treasury is used to incentivize groups and individuals that contribute to the ecological development of ChainX. Anyone can apply for development funding and ask for Council approval.

X-Association (Community Association) is responsible for promoting the development of both the community and technology. The initial members are selected by the 8th Council, and individuals who are willing to contribute to the development of ChainX will be accepted at a later stage after being assessed. More on this below.

Referendum Chamber

The Referendum Chamber has the highest rights and most users: You. All “legislation” (that is, the modification of blockchain runtime logic) must go through a democratic referendum.

Thanks to Substrate’s non-fork upgrade method, any runtime logic modification on the ChainX network can be implemented directly on the chain. These amendments must be submitted through a referendum, and when passed, the network will automatically upgrade and deploy this amendment after an enactment delay. This delay is set at 7 days.


If the ChainX network only relies on a referendum the governance efficiency will be very low. Therefore, the Council is introduced to handle routine affairs in the network. The Council consists of 11 full members, with 7 runners up and are chosen by on-chain community vote. The voting system uses a Phragmén method election algorithm. The term of office is 1 day, that is, re-election every 24 hours. However, the change in Council members is only occasional under normal circumstances. The election process is as follows:

  • Candidates submit their candidate application through ‘Submit candidacy’ on the Council page. They need to pledge 10 PCX for their submission. If they fail, the 10 PCX deposit will be confiscated. If they succeed, they will become a Council member or runner up, and the deposit can be withdrawn when they decide to cancel their candidacy;
  • The community votes through the ‘Vote’ option on the Council page, users can choose up to 16 candidates to vote for and lock the number of tokens participating in the vote. This gives weight to their vote equal to the amount locked, spread equally over all selected candidates. The minimum pledge is 0.01 PCX and can be fully withdrawn at any time by deleting their vote;
  • When the election time is up, the vote counting ends, and the Council members are updated.

The responsibilities of the Council include, but are not limited to:

  • Submitting referendum bills for public voting. This type of bill can have three different voting mechanisms. In addition to a public referendum, the Council can submit a referendum with a majority vote and unanimous vote. The first one requiring at least 1/2 of the members to agree and the second requiring all members to agree;
  • Canceling a referendum in an emergency, 2/3 of the members need to agree;
  • Canceling the staking penalty (slashing) caused by network abnormality, at least 1/2 of the board members must agree;
  • Voting on proposals using treasury funds, at least 3/5 of the members are required to pass such a proposal, and more than 1/2 of the members are required to directly reject it.

Technical Committee

The members of the Technical Committee are composed of the technical team that develops ChainX. Currently, the PolkaX development team is on the technical committee. The technical committee will serve as a supplement to the Council for the technical side and can be removed by the Council. The responsibilities of the technical committee mainly include:

  • Submit an emergency proposal to fast track changes in a state of emergency;
  • Veto the board’s referendum proposal if it is damaging for the network, each member has only one opportunity to veto a certain proposal, and it can only last for 7 days.

ChainX Treasury

ChainX has also introduced the mechanism of the Polkadot Treasury. The fees collected in the Treasury include:

Node slashing amount;

TR computing power (mining distribution);

The deposits of the Council candidates that lost.

As ChainX grows, all contributions that are beneficial to the ChainX ecology can are supported by the Treasury. Users can apply for funds from the Treasury to achieve these goals. Contributions include but are not limited to:

  • Infrastructure deployment, operation, and maintenance;
  • Network security, such as monitoring services or auditing;
  • Ecological support, such as cooperation with third-party blockchains (bridges);
  • Marketing activities, such as advertising or partnerships;
  • Community activities, such as meet-and-greets, ChainX parties, or other forms, whether digital or in-person;
  • Software development category, such as wallets or clients.


X-Association is a non-profit organization with the purpose to support the development of ChainX and the construction of related ecology. X-Association is composed of experts and enthusiasts who are familiar with ChainX, blockchain community management, technology, development, and are ready to dedicate time to develop ChainX for the long term.

The initial members of the X-Association are elected by the ChainX Council, and consist of one Secretary-General (a PolkaX member) and four Officers: Kristen (ChainX CMO), Buildlinks (ChainX trust node), Feilun (ChainX Chinese node), and Alexander (ChainX Overseas node).

After the establishment of X-Association, to ensure operational efficiency and continuity, X-Association decides on the replacement of its personnel and reports this to the Council. The Council holds the ultimate right to initiate a proposal to replace members of the X-Association. For this to pass, 2/3 of the Council members have to agree. The X-Association creates dynamic working groups for specific tasks, led by the Secretary-General or an Officer.

X-Association performs the following duties under the approval of the ChainX Council:

  • Provide advice or consulting services for the development and planning of the ChainX chain;
  • Cultivate, manage and support the development of the ChainX community (including fan community and developer community);
  • Provide direct technical support for users and developers of ChainX;
  • Coordinate and manage the various development teams of the ChainX chain;
  • Regularly release work reports and fund usage reports to the Council and the community.

X-Association Funding Source and Management

X-Association has a separate PCX account. Its funds come from regular appropriations from the Council. The funds are located in a 3/5 multi-signature account on the PCX chain. The Secretary-General and 4 Officers each hold a private key. When the Secretary-General or Officer changes personnel, the multi-signature account shall be renewed accordingly.

ChainX 2.0 marks the end of one network and the beginning of another. Together we will open a new chapter in on-chain governance and open the doors to the development of the ChainX community. Anyone interested in participating in the development of ChainX is welcome to join the network and participate in the journey together.

About ChainX

ChainX is the largest Layer-2 network of Bitcoin, based on Substrate, and will evolve into the Polkadot Secondary Relay Chain.