Bitgem Governance

How bitgem governance works

Bitgem governance is the mechanism that allows the community to govern how Bitgem operates: Proposals can be filed to change fees and drive projects related to Bitgem development.

A total of 30 million Bitgem governance tokens exist in total. Bitgem governance tokens can be earned on the v1 platform. However with v2, governance tokens will no longer be given away and we are adopting a more formal tokenomics model.

Once armed with some Bitgem governance tokens, users can vote on newly-added governance proposals. Anyone can file a governance proposal.

Once created, proposals can only be voted on once funded at a cost of 10 deposited Bitgem governance tokens. Anyone can fund a proposal, and the funding is returned at the end of the proposal's lifecycle.

Once funded, proposals are voted on by governance token holders - one token, one vote. More than 50% votes in favor automatically pass the proposal.

The proposal can then be executed. Anyone can initiate execution of a proposal once it has passed, and whether a proposal has passed or not, the funder receives their Ethereum back.

If a proposal does pass and it is a gem pool addition proposal, then the proposal initiator and the proposal funder both get the first and second gems of the new gem pool minted to them as a reward. Governance proposal types include:

1. fund a project

2. change pool fees

3. modify pool tokenlist

A governance UI will be available in the near future. This interface will allow anyone to submit proposals, and governance-token holders to vote on those proposals.