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Governance

SkullSwap has its own method of governance

Governance of SkullSwap

Governance on SkullSwap is conducted through a voting system, where holders of dSKULL tokens can vote on community proposals that determine the direction of the platform.

Voting with dSKULL Tokens

To participate in voting on SkullSwap, users must hold dSKULL tokens. These tokens are an illiquid version of the SKULL tokens that accrue additional SKULL tokens through yield-bearing mechanisms. Once a user holds dSKULL tokens, they can vote on proposals through the Snapshot platform.

The More You Hold, The More You Can Vote

The weight of a user's vote is determined by the amount of dSKULL tokens they hold. The more dSKULL tokens a user holds, the more voting power they have. Additionally, since dSKULL tokens accrue more SKULL tokens, this incentivizes users to hold onto their dSKULL tokens for an extended period of time, as they will accumulate more SKULL tokens over time, thus giving them more voting power.Users can convert their dSKULL to SKULL at any time, but doing so would decrease the number of dSKULL tokens they hold, thus decreasing their voting power.

Voting on Community Proposals

Community proposals are submitted by users of the platform and can cover a wide range of topics, such as new features, changes to the platform's economics, and more. Users can vote on proposals through the Snapshot platform. The proposal will be implemented if it reaches a certain level of support from the community. This ensures that the direction of the platform is determined by the community and not by a small group of individuals.
In summary, the governance of SkullSwap is conducted through a voting system where holders of dSKULL tokens can vote on community proposals that determine the direction of the platform. The weight of a user's vote is determined by the amount of dSKULL tokens they hold, and since dSKULL tokens accrue more SKULL tokens, it incentivizes users to hold onto their dSKULL tokens for an extended period of time, thus giving them more voting power.