Do you think the lock-up period of PCX should be 3 days or 14 days? In this article, we will give you more information to form your own opinion and explain how to cast your vote, and what casting a vote actually does.
We recently posted this article about the second community referendum, initiated by Councillor Xiamipool, to change the lock-up period after unbouding from 3 to 14 days through on-chain governance.
This article will contain two major sections: A Why (1) and a How (2).
In the first section, Why, we have collected arguments for and against this referendum from the community. This is available for everyone to form their own opinion and help decide whether to vote Aye or Nay.
In the second section, How, we provide a short reminder of how voting on a referendum works and what you should be mindful of. A more in-depth article is linked at the end of that section. The official documentation of Polkadot’s Governance module is also included.
This article is purely informative and neither for nor against the referendum.
Why
This section will contain a condensed and summarized version of the collected opinions and arguments of the community. If your opinion isn’t portrayed correctly, please contact Alexander Vogels (@Exxibition) on telegram.
These arguments are labeled as for or against by their authors. You may find some arguments that are against the referendum, actually give a good reason for the referendum, and vice versa. Please read both sections to shape your opinion.
For — Change the lock-up period to 14 days (Aye)
User A: Changing to 14 days lock-up period is not just about PCX price. It is about network security and future governance. This referendum promotes long-term thinking and reduces speculation. The primary focus should be to build a powerful governance system and strengthening network security by encouraging good behavior and decision-making, which in turn makes PCX more stable in the future. It makes people focus on the long-term success of the project and not short-term profits.
User B: The health and sustainable growth of ChainX depends on staked PCX. I agree that changing the lock-up period after unstaking insulates the network from movements in the market. Owners of PCX that like to trade are less likely to stake, PCX holders that follow a long-term strategy will be more likely to stake. The 42% APY is extremely generous compared to similar projects. As a PCX holder you can also choose to keep a portion of your bag unstaked to day- or swingtrade with. The fact that such a large portion of PCX is staked is very bullish for market value. Only a small portion is available for selling.
User C: It’s fair to think setting the lock-up period to 14 days reduces the amount of PCX staked. Another unpopular decision could have been to introduce a minimum staked amount in order to get rewards. On Polkadot you need to stake at least 176 DOT to get rewards.
Against — Do not change the lock-up period to 14 days (Nay)
User D: It’s better for ChainX to be the example of freedom instead of locking down its community. ChainX should stand out in the crowd through quality and freedom, not restrictive measures. We might even want to remove the 3-day lock because it gives people a stronger feeling of security and control over their PCX.
User E: 3 days lock-up gives freedom of movement. It allows us to do what we want when we want. It promotes a free market.
User F: Today someone wants to change the lock-up period, tomorrow the coin supply and after that the halving interval. People were attracted to the original design of PCX. Why change it? Bitcoin doesn’t have a lock-up period and the price goes up. Why? Because people want it. It is important that people want to keep PCX, not make it so it cannot be sold when needed.
User G: With the halving coming up, staking APY will be divided by 2. Adding 14 days lock-up period after unstaking makes ChainX not so interesting anymore compared to other projects. The 3 days and 42% APY is what attracted me to buy and stake. If the referendum passes, I think I would unstake some PCX to still get them after 3 days and take some profits.
User H: Being allowed to take advantage of both the staking rewards and volatility in crypto is a unique advantage of PCX and should remain so. Limiting to 14 days would make swing trading impossible.
How
FIRST: Clear your old democracy votes. Click on the yellow arrow in the top right, then the three dots behind your wallet. Then click “Clear expired democracy locks”. This unlocks your previously voted PCX.
This will be a short walk-through on how to vote and what you should keep in mind. A more detailed guide can be found here. ChainX directly uses Polkadot’s Governance module. If you’re looking for even more detail, please read this wiki article here. If you want to know how this module works, you can read more here.
Note: you can use all your PCX to vote. It doesn’t matter whether it is staked or not. Governance is a secondary function of PCX and allows you to use PCX for both staking and voting at the same time.
Step 1: Go to https://dapps.chainx.org/#/democracy/democracy
Step 2: Click on ‘vote’ on the very right side of the referendum
Step 3: Fill in the weight of your vote. This can be all your PCX, staked or not.
Step 4: Add a lock up period. The longer you are willing to lock your PCX the ‘stronger’ your vote will be.
Warning: You can make your PCX count 5 times as heavy, but they will be locked for 128 days. This also means you cannot use that amount of PCX for the next 16 referendums.
Step 5: Vote Aye or Nay. Voting Aye means you agree with the referendum and want the lock-up period changed to 14 days. Voting Nay means you disagree with the referendum and want the lock-up period to remain 3 days.
Step 6: After the referendum has been concluded it will lay idle for 8 days. This is the enactment period. During this period, the ‘losing side’ can unlock their democracy votes and take their desired action. The ‘winning side’ will remain locked for their chosen lock period. After 8days the change will be made if the referendum passed, or nothing will happen if the referendum was rejected.
This concludes the article about ChainX’s second on-chain community referendum. If you have any questions you can ask them in our telegram linked below and the Community and Councillors will happily answer them.
About ChainX
- Official Website: https://chainx.org
- Github: https://github.com/chainx-org/ChainX
- Desktop wallet: https://dapps.chainx.org
- Twitter: https://twitter.com/chainx_org
- Medium: https://chainx-org.medium.com
- Telegram: https://t.me/chainx_org
- White paper: English white paper PDF
- Official Wechat: interchain
