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Governance

Flare governance empowers the community by providing a structured process for decision-making across the Flare and Songbird networks. This governance framework plays a crucial role in decentralization and allows participants to:

  • Propose policy changes
  • Vote on them
  • Execute approved proposals

Proposal Types and Networks

On Flare Mainnet and Songbird Canary-Network, there are three different types of proposals:

Flare Improvement Proposals (FIPs)

  • Network: Flare Mainnet
  • Initiator: Flare Foundation
  • Default Status: Rejected by default
  • Voting Tokens: WFLR (wrapped FLR)
  • Approval Condition: Simple majority vote in favor
  • Quorum Requirement: None

FIPs are proposed enhancements designed to improve the stability of Flare Mainnet. They follow an acceptance-based voting process, where approval requires a simple majority of cast votes to be in favor.

Songbird Test Proposals (STPs)

  • Network: Songbird Canary-Network
  • Initiator: Flare Foundation
  • Default Status: Accepted by default
  • Voting Tokens: WSGB (wrapped SGB)
  • Rejection Conditions:
    • Threshold: At least 75% of all circulating SGB tokens must participate
    • Majority: More than 50% of votes must be against the proposal
  • Outcome: STPs are accepted unless both rejection conditions are met

STPs allow rapid testing of proposals on Songbird Canary-Network before their implementation on Flare Mainnet. If either the quorum threshold is not met or fewer than half of the votes cast are against, the proposal is accepted.

Songbird Improvement Proposals (SIPs)

  • Network: Songbird Canary-Network
  • Initiator: Flare Foundation
  • Default Status: Rejected by default
  • Voting Tokens: WSGB (wrapped SGB)
  • Approval Condition: Simple majority vote in favor
  • Quorum Requirement: None

SIPs are proposed enhancements designed to improve the stability of Songbird Canary-Network. They follow an acceptance-based voting process, where approval requires a simple majority of cast votes to be in favor.

Voting Process

Eligibility and Vote Power

To participate in governance, users must hold wrapped tokens. Voting power is determined by the number of wrapped tokens a user possesses:

NetworkProposal TypeTokenWrapped Token
Flare MainnetFIPFLRWFLR
Songbird Canary-NetworkSTPSGBWSGB
Songbird Canary-NetworkSIPSGBWSGB

The Flare Foundation announces proposals in advance, allowing users to wrap their tokens before voting begins.

Vote Transfer

Users can transfer their voting power to another address while retaining ownership of their wrapped tokens. This feature is useful for consolidating votes across multiple self-custody wallets.

  • Votes can be transferred to a single address but received from multiple addresses.

  • Transferred votes cannot be further delegated.

  • Once activated, all votes from an account are transferred to the designated address until the delegation is canceled.

Example: If an account holds 100 WSGB and enables vote delegation, it transfers 100 votes. If an additional 100 WSGB is acquired later, the delegation automatically transfers 200 votes in the next proposal.

Vote Count Block

Since token balances fluctuate, a snapshot of all accounts is taken before voting starts. This snapshot, known as the vote count block, determines the number of votes an account can cast.

To encourage active participation and prevent strategic acquisition of tokens solely for voting, the vote count block is selected randomly.

Voting Procedure

The governance voting process follows a structured sequence:

  1. Proposal Announcement: The Flare Foundation publishes proposals on Flare Governance Proposals, the Flare website and social media channels (see footer for links).

  2. Notice Period: A minimum one reward epoch window allows for discussion, clarifications, and potential cancellation of flawed proposals.

  3. Block Selection Period: The vote count block is selected randomly within this timeframe.

  4. Voting Period: Voting occurs on the Flare Portal and usually lasts one week (around two reward epochs). Results are published at the conclusion.

The voting process follows these key principles:

  • Threshold condition: Some proposals require a minimum quorum for validity.

  • Majority condition: More than 50% of votes cast must support or oppose the proposal.

Governance Proposal DiagramGovernance Proposal Diagram

Proposal Execution

Once a proposal is accepted, execution occurs based on its implementation method:

  • Smart Contract Execution: Governance contracts enable automatic execution through contract calls.

  • Manual Execution: Proposals requiring offchain actions are executed by the Flare Foundation.

  • Future Automation: Over time, additional automation mechanisms may be introduced.