📜Proposals

Propose upgrades and changes to Moonwell

Introduction

The Moonwell protocol operates under community governance through a structured proposal process. Members recommend, discuss, vote on, and implement changes, thereby removing the reliance on any specific individual or team.

Ideation and Forum Discussion

To submit a proposal, begin by posting in the Moonwell Governance Forum, ensuring that it aligns with the proposal guidelines. If a proposal cannot be condensed into a focused and organised format, it should be shared in either the forum's ideas subcategory or Discord's #governance channel first. Everyone is encouraged to take part in the governance process by registering for a forum account or joining the Moonwell Discord.

Onchain Voting (MIP)

Changes to the Moonwell codebase are initiated through an onchain proposal known as a Moonwell Improvement Proposal (MIP). These proposals include a detailed description and execution code. The implementation process for these proposals differs depending on the target chain: Base, Moonbeam, or Moonriver.

MIPs can be found by navigating to "Governance" within the Moonwell application.

Use the network toggle to change between networks and display the corresponding proposals.

Onchain voting follows the process illustrated in the diagram below.

Proposal Creation

Any wallet with sufficient voting power can create a Moonwell Improvement Proposal. The current proposal threshold is set at 400,000 votes for Base and Moonbeam, and 500,000 votes for Moonriver. The author of the proposal must provide a detailed description and accompanying code, containing up to 25 operations that will be executed if the proposal is approved. After a short delay of 60 seconds, the active voting period for the proposal commences.

Proposals which seek to make changes to the Base deployment of Moonwell are submitted on Moonbeam.

Proposals which seek to make changes to the Moonbeam deployment of Moonwell are submitted on Moonbeam.

Proposals which seek to make changes to the Moonriver deployment of Moonwell are submitted on Moonriver.

Voting Period

The voting period lasts for 3 days, during which any wallet with voting power can register a vote of "For", "Against", or "Abstain".

At the end of the voting period, a proposal will be considered to have succeeded if it meets the following criteria:

  • Proposal has received a majority of "For" votes (greater than 50% "For" when compared to "Against")

  • Proposal has received quorum of at least 100,000,000 WELL votes (Moonbeam/Base) or 40,000,000 MFAM (Moonriver)

Quorum is a measure of all "For", "Against", and "Abstain" votes on a proposal.

It is possible for "Abstain" votes to assist a proposal in reaching quorum and passing successfully.

If a proposal fails to secure a majority of "For" votes AND quorum within the 3-day voting period, it will be deemed defeated and cannot be executed.

Timelock

Once a proposal is successful, it will be placed in the Timelock queue. The Timelock enforces a mandatory 24-hour delay before the proposal can be executed. This allows the community to have time to react to the proposal before it takes effect.

All MIPs related to the Base deployment of Moonwell are subject to an additional 24-hour Timelock period.

Execution

After the Timelock delay has passed, any account on the Moonbeam (WELL) or Moonriver (MFAM) networks can execute the proposal. Once executed, all operations included in the proposal will be performed.

Base MIPs (Temporal Governance Verification and Execution)

Once a proposal for the Base deployment of Moonwell garners sufficient support and succeeds, it undergoes a 24-hour Timelock. After this period, the proposal is executed on Moonbeam and a message is submitted to the Wormhole protocol. Temporal Governance will authenticate the proposal and verify the legitimacy of the source. If all conditions are satisfied, the proposal enters a second 24-hour timelock before being executed on Base. This additional Timelock serves as a safeguard against rare situations where the Wormhole guardians sign a message that did not pass through Moonwell governance. It allows for any potential discrepancies or issues to be identified and resolved before the proposal is executed.

Snapshot Voting

To propose significant changes to the Moonwell protocol, it is advisable for proposal authors to first gauge community interest and feedback by conducting a Snapshot "signal" vote. These votes are non-binding as they cannot directly alter the protocol. However, they serve as a valuable tool for measuring sentiment on substantial matters.

Snapshot proposals can be found by navigating to "Governance" within the Moonwell application.

Use the network toggle to change between networks and display the corresponding proposals.

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