Governance Power

Governance power

As DeltaPrime moves into decentralized governance, your voting power will depend on the governance points you accrue. Your currently accrued governance points will be visible from the DeltaPrime UI. Since these points are all on-chain, you will also be able to find them in any explorer with your wallet or PA address. Governance points can be used to decide on what protocols to integrate, what chains to expand to, where to allocate any collected fees, etc.

How to earn governance power

Governance power is earned within the DeltaPrime protocol. By holding $sPRIME and using the platform, you can earn these points. The amount that you earn depends on your actions on DeltaPrime: For every $10 borrowed and $1 $sPRIME owned, your balance increases linearly with 10 points per year. For every $10 deposited and $1 $sPRIME owned, your balance increases linearly with 50 points per year. Only full 10-1 pairs can produce governance points. That means that if you have $200 USDC deposited, and $100 $sPRIME, your account will create points as if you have $200 deposited and hold $20 $sPRIME (leading to 1000 points per year).

Governance power cap

Governance points are capped at 3 years. With $10 borrowed and $1 $sPRIME owned, your governance power can grow up to 30 points. With $10 deposited in a savings pool and $1 $sPRIME owned, your governance power can grow up to 150 points.

How to lose governance power

You can lose governance power by withdrawing deposits, repaying borrowed value or redeeming $sPRIME. Your governance power only reduces if your current governance power exceeds the governance power cap. If this happens, your points that surpass the cap will deteriorate over a period of 14 days. This means that if a user after two years has accumulated 100.000 points with $10.000 in deposits and he withdraws 50% of this, his new governance cap is reduced from 150.000 to 75.000 points. This means his balance will decrease by 1,785 (=(100.000 - 75.000) / 14) points per day, over the course of 14 days. In this example, after 14 days his total points will amount to 75.000, meaning he will not accumulate any more points until the amount deposited is increased.