Governance Basics
Namada uses on-chain governance to make collective decisions about the protocol's future. This guide explains how it works.
What is Governance?
Governance is how Namada's community:
- 📜 Proposes changes
- 🗳️ Votes on decisions
- 🔧 Implements upgrades
- 💰 Allocates funds
All on-chain, transparent, and binding.
Who Can Participate?
| Role | Power |
|---|---|
| NAM stakers | Voting power = staked amount |
| Validators | Vote on behalf of delegators |
| Proposal authors | Anyone can propose |
More stake = more voting power (stake-weighted voting)
Key Concepts
Proposals
Formal requests for changes:
- Parameter updates
- Protocol upgrades
- Funding requests
- Steward elections
Voting Power
Your voting power equals your staked NAM:
Staked: 1,000 NAM
Voting power: 1,000 votes
Delegation
If you don't vote, your validator's vote counts:
You delegate to ValidatorA
ValidatorA votes Yay
Your stake counts as Yay (unless you vote differently)
Epochs
Governance operates on epochs (~12 hours):
- Proposals span multiple epochs
- Voting periods measured in epochs
- Results tallied at epoch boundaries
Proposal Lifecycle
1. CREATION
Author submits proposal + deposit
2. VOTING PERIOD
Community votes for ~5 epochs
3. TALLY
Votes counted
4. GRACE PERIOD
Time before execution
5. EXECUTION
If passed, changes applied
Proposal Types
Default Proposal
General governance decisions:
- Parameter changes
- Protocol upgrades
- Non-funding decisions
PGF Proposal
Public goods funding:
- Fund projects
- Continuous or one-time
- Community treasury spending
PGF Steward Proposal
Steward management:
- Add new stewards
- Remove existing stewards
- Change steward parameters
Voting Options
| Vote | Meaning | Effect |
|---|---|---|
| Yay | Support | Counts toward passing |
| Nay | Oppose | Counts against passing |
| Abstain | Neutral | Counts toward quorum only |
Quorum & Threshold
For a proposal to pass, it needs:
Quorum
Minimum participation required:
Required: 40% of staked NAM must vote
If < 40% vote: Proposal fails (insufficient participation)
Threshold
Approval percentage needed:
Required: 66.67% (2/3) of votes must be Yay
Abstain votes count toward quorum but not threshold
Example Calculation
Total Staked: 100,000 NAM
Quorum needed: 40,000 NAM
Votes cast:
- Yay: 30,000 NAM
- Nay: 10,000 NAM
- Abstain: 5,000 NAM
- Total: 45,000 NAM
Quorum check:
45,000 > 40,000 ✅ Quorum met
Threshold check:
Yay / (Yay + Nay) = 30,000 / 40,000 = 75%
75% > 66.67% ✅ Threshold met
Result: PASSED ✅
Validator Voting
How It Works
Validators vote, and their delegators' stake is included:
ValidatorA has 1,000,000 NAM delegated
ValidatorA votes Yay
All 1,000,000 counts as Yay
Override
Delegators can override:
ValidatorA votes Yay
You vote Nay
Your portion counts as Nay (not Yay)
Why This Matters
- Validators represent delegators by default
- Active voters have direct influence
- Validator selection includes governance preferences
Creating Proposals
Requirements
- Deposit: ~500 NAM (returned if proposal passes/meets quorum)
- Proper format: JSON with required fields
- Epoch timing: Correct voting period epochs
Best Practices
- Discuss in forum first
- Build consensus
- Write clear specification
- Allow adequate voting time
See Create Proposal for details.
Governance Parameters
| Parameter | Typical Value | Description |
|---|---|---|
| Voting period | 5 epochs | How long voting is open |
| Grace period | 3 epochs | Time before execution |
| Quorum | 40% | Minimum participation |
| Threshold | 66.67% | Approval needed |
| Deposit | 500 NAM | Required to propose |
Parameters may vary - check current values on-chain
Governance vs Traditional DAOs
| Aspect | Namada | Many DAOs |
|---|---|---|
| Voting power | Stake-weighted | Token-weighted |
| Delegation | Automatic to validator | Often manual |
| On-chain | Yes | Sometimes |
| Binding | Yes | Sometimes |
Security Considerations
Against Attacks
| Attack | Protection |
|---|---|
| Flash loan voting | Stake must be locked |
| Majority attack | High quorum/threshold |
| Spam proposals | Deposit requirement |
| Voter apathy | Validator voting |
Time Locks
Grace period allows:
- Community review of passed proposals
- Detection of malicious proposals
- Emergency response if needed
Participating Effectively
As a Voter
- Stay informed: Follow governance channels
- Read proposals: Understand what you're voting on
- Vote: Don't leave it to your validator
- Engage: Discuss in forum and Discord
As a Proposer
- Build consensus first: Discuss before proposing
- Write clearly: Explain the change
- Be responsive: Answer questions
- Campaign: Encourage voting
Governance Resources
Where to Find Proposals
- Block explorers: Governance section
- Forum: forum.namada.net
- Discord: #governance channel
Discussion Channels
- Forum for long-form discussion
- Discord for quick questions
- Twitter for announcements
FAQ
What if I don't vote?
Your validator's vote applies to your stake.
Can I change my vote?
Yes, until voting ends. Only your last vote counts.
What happens to deposits?
Returned if proposal passes or meets quorum. May be slashed for spam.
Can proposals be cancelled?
No, once submitted, proposals complete their lifecycle.
How do I know about new proposals?
Follow governance channels, set up alerts, check regularly.
Summary
Namada Governance in brief:
- Stake NAM to vote
- Proposals need 40% participation
- Need 66.67% approval to pass
- Validators vote for non-voting delegators
- Anyone can propose (with deposit)
- All decisions are on-chain and binding