In order to propose changes to the protocol or vote in onchain governance proposals, users are required to delegate their WELL or MFAM tokens. Token delegation is a process whereby a token holder provides an account (delegate) with the permission to vote on their behalf (voting power).
Voting power can be activated through self-delegation (delegating tokens to oneself) or by delegating to another address. Once delegated, voting power remains in effect from the current block onwards, until such a time when the token holder delegates to a different address or transfers their WELL/MFAM tokens.
It's important to note that delegation does not transfer token ownership. Instead, the delegate is granted "Voting Power" equivalent to the number of tokens delegated to them.
Delegation is particularly beneficial for users who lack the time or technical expertise to actively participate in the governance process but still want their tokens to contribute.
How to Delegate
Section 1: Understanding Token Status
WELL or MFAM tokens will initially be in an un-delegated state unless they are staked within the Safety Module. It is the token holder's responsibility to delegate their tokens.
When tokens are staked within the Safety Module, they are automatically delegated to the staker's address. This delegation activates the inherent voting power of one's WELL/MFAM tokens without requiring any further action.
Section 2: Accessing Voting Power
To start the delegation process, WELL and MFAM token holders are required to access "Governance", then choose the "Voting Power" subcategory. In this section, holders can access a comprehensive breakdown of their voting power. The total voting power shown is the sum of the following:
Delegated WELL or MFAM tokens
Amount of tokens staked in the Safety Module
Section 3: Activating Voting Power
To delegate un-delegated tokens, follow these steps:
Locate the undelegated tokens on the "Voting Power" page, then click "Activate Voting Power".
Enter the address to which the tokens should be delegated. If delegating to the holder's own address, simply click "Self" and the text box will be auto-populated.
After ensuring the correct address has been entered, click "Save Changes".
Confirm the transaction.
Once the transaction is completed, a notification will confirm the successful delegation. Holders can now check their Voting Power for an updated total, which should reflect the newly delegated tokens.
Unclaimed sale tokens can contribute to voting power. To vote with these tokens, they must be delegated through "Claims". If there are any un-delegated WELL tokens, a notice will appear with a prompt to "activate" them.
The "Delegates" page offers a comprehensive list of available representatives for holders to delegate their voting power. This page provides detailed information about each delegate, empowering holders to make well-informed decisions regarding who will best represent their interests in Moonwell Governance.
To select a delegate from the list of representatives, simply click on "Select as Delegate" next to the desired representative. This action will automatically enter the delegate's address into the "Activate Voting Power" panel, as shown above.
It is crucial to remember that delegating voting power does not equate to surrendering one's voice. Rather, it involves entrusting it to another holder who can effectively represent the original holder in Moonwell Governance at any given moment. Ultimately, the holder still retains control and has the option to reclaim their direct voting power whenever desired.
Section 4: Changing Delegate
If a holder wishes to change their delegate, they should follow these steps:
Locate their delegated tokens on the "Voting Power" page, then click "Change Delegate".
Enter the address of the new delegate.
Confirm the change and execute the transaction.
Navigate to the "Delegates" page.
Review the list of delegates.
Click on "Select as Delegate" for the desired delegate. This action will automatically enter the delegate's address into the "Change Delegate" panel.
To assign the desired delegate, click "Save Changes" in the "Change Delegate" panel and patiently wait for the transaction to be executed. Upon successful completion, the voting power will be directed to the newly assigned delegate.
Becoming a Delegate
To become a delegate and represent others in Moonwell's decision-making process, all you need to do is nominate yourself. Simply create a post in the "Delegation Pitch" category of the Moonwell Governance Forum. When a token holder decides to delegate their WELL or MFAM tokens to your address, you gain their voting power and represent them in Moonwell Governance.
Step 1: Prepare Your Delegation Pitch
Before creating your post, it is important to prepare these key items:
Introduction of yourself - Provide a brief introduction of who you are, detailing your interests, involvement in the Moonwell community, and any relevant experience that makes you a good choice as a delegate.
Your vision for the protocol - Outline your vision for the future of the protocol. This should show token holders what type of decisions you might support.
Your decision-making framework - Describe your personal rubric for voting on proposals.
Why others should delegate to you - Highlight your unique skills, knowledge, or capabilities that make you a good choice as a delegate.
Step 2: Review the Delegate Guidelines
Before creating your post, please read and understand the Delegate Guidelines. These guidelines outline the expectations for delegates in the Moonwell community and provides a framework for effective delegation.
Step 3: Post in the Delegation Pitch Forum
With your Delegation Pitch prepared and the Delegate Guidelines reviewed, you can create your delegate pitch in the "Delegation Pitch" category on the Moonwell Governance Forum. Be sure to format your post clearly and answer all potential questions that members of the community might have.