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Governance

Governance is fundamental to Atlo Protocol. In line with a decentralised Terra platform, it forms the backbone of all decision making at key points in the launch process.

Governance of Atlo Protocol is managed by stakers of the $ATLO Token and where staked tokens are used for voting on proposals. Proposals include new tokens to be launched by the protocol, features to be added or modified to the protocol and granting funds to assist projects that aim to improve the Atlo Protocol.

Governance Procedure

The following is the governance proposal procedure for Atlo Protocol, which is directly inherited from the Terra and Cosmos SDK governance module. This is to ensure consistency across the ecosystem for all users alike.

For more information on that process, see this link here.

Note that because the governance model is based on how it is done elsewhere in the Terra Ecosystem, we are simply repeating this common process in the descriptions below with minor modifications highlighting how it works in the context of the Atlo Protocol governance procedure.

Governance Parameters

  • Deposit Period

Parameter Description Default
MinDeposit Minimum total deposit for a proposal to enter a voting period 10,000 $ATLO
MaxDepositPeriod Maximum period for $ATLO Token stakers to deposit on a proposal 1 week
  • Voting Period

Parameter Description Default
Quorum Minimum percentage of total stake needed to vote for a result to be considered valid 10%
Threshold Minimum proportion of Yes votes for proposal to pass 50%
Veto Minimum value of Veto votes to Total votes ratio for proposal to be vetoed 33%
VotingPeriod Length of the voting period 5 days
  • Token Launch Proposal

Parameter Description Default
PremiumLaunchRating Percentage of votes in favour of proposal that deems it to be a premium proposal 90%
PremiumReleasePeriod Period that the raised funds will be held before releasing to the proposer 0 weeks
PremiumLaunchFee Fee charged by Atlo Protocol for launching the token 3% of the raise
GoodLaunchRating Percentage of votes in favour of proposal that deems it to be a Good proposal 75%
GoodReleasePeriod Period that the raised funds will be held before releasing to the proposer 4 weeks
GoodLaunchFee Fee charged by Atlo Protocol for launching the token 5% of the raise
StandardLaunchRating Percentage of votes in favour of proposal that deems it to be a Standard proposal 50%
StandardReleasePeriod Period that the raised funds will be held before releasing to the proposer 12 weeks
StandardLaunchFee Fee charged by Atlo Protocol for launching the token 10% of the raise
  • Token Launch Allocations

Parameter Description Default
AllocationWhitelist Percentage of allocation assigned to whitelisted wallets provided by Launcher 20%
AllocationAtlo Percentage of allocation assigned to Atlo participants according to their Atlo Rating 80%
MinAllocationAtlo Minimum UST amount of allocation assigned to Atlo participants 100 UST
RaiseTarget Percentage of UST raised of the total target to deem the Vote to be of expected quality 95%

Deposit Period

After a proposal is submitted, it enters the deposit period, where it must reach a total minimum deposit (MinDeposit) of $ATLO Tokens within the maximum deposit period (MaxDepositPeriod) from the time of submission. The deposit threshold is reached when the deposits from all interested participants meets or exceeds the minimum deposit threshold (MinDeposit).

Deposits are required to protect against spam and are returned for proposals that pass or fail except when a proposal is vetoed. Deposits of $ATLO tokens in vetoed proposals will be deposited into the Atlo Community Warchest.

Voting Period

If the minimum deposit is reached before the end of the deposit period, deposits are then returned and the proposal proceeds to voting for a period defined by the governance parameter VotingPeriod. Stakers of $ATLO Tokens can cast votes for the proposal with 4 voting options available:

  • Yes - in favour
  • No - not in favour
  • NoWithVeto - veto
  • Abstain - does not influence vote

1 staked $ATLO Token = 1 vote.
1 vesting $ATLO Token as at MaxDepositPeriod from today = 1 vote.

Tallying

For a proposal to pass, the following conditions must be met:

  1. Voter participation must be at least Quorum Q: $$ \frac {Yes + No + NoWithVeto}{Stake} \ge Q $$
  2. The ratio of NoWithVeto votes must be less than Veto V: $$ \frac {NoWithVeto}{Yes + No + NoWithVeto} < V $$
  3. The ratio of Yes votes must be greater than Threshold T: $$ \frac {Yes}{Yes + No + NoWithVeto} > T $$

If any of these conditions are not met, the proposal is rejected. These governance conditions/parameters can be changed by submitting a “Modify Governance Parameters” proposal to evolve and adapt these conditions over time.

Proposal Implementation

When a governance proposal is accepted, the changes described are automatically put into effect by the proposal handler.

Proposal Types

Type Description
Token Launch Proposal to launch a token on the the Atlo Protocol including all required details
Create Protocol Feature Proposal to add new features to the Atlo Protocol
Modify Protocol Feature Proposal to modify existing features on the Atlo Protocol
Modify Governance Parameters Proposal of modifications to the Atlo Governance parameters
Community Warchest Grants Proposal for Atlo Protocol Community funded work

The Token Launch Proposal

Submitting The Token Launch Proposal

Proposers wanting to launch on the Atlo Launchpad will need to submit a Token Launch Proposal which is voted on by stakers of $ATLO as per the governance procedure defined above.

The Token Launch Proposal contains all the parameters required to create the smart contract, and once successfully voted, will be used for deploying the smart contract at the end of the voting period. The Token Launch Proposal will require information including, but not limited to:

  • Introduction
  • Project Overview
  • Links to litepapers
  • Vesting schedules
  • Tokenomics and Pricing
  • Launch Method
  • Minimum Prefunding Amount
  • KYC Requirements
  • Release Dates
  • Team Information
  • Any whitelisted wallets required for the launch
  • Investors
  • Social Media Links
  • Other items identified enabling the community to make an informed decision on the quality of the project.

Validating the Token Launch Proposal

To provide important feedback to launchers, validators will verify the information provided by the launcher. As described above, validators act on the behalf of those who have delegated their $ATLO tokens to the validator. This gives the launcher an opportunity to communicate with the Atlo community who are committed to launching tokens on the platform. This can include advice on the provided information in the proposal to ensure all matters required for a successful launch have been considered by the launcher. It also gives the Atlo community the ability to allow validators to vet projects before they can be voted on in the Atlo governance process. Once 3 of the top 5 Atlo validators have signed the proposal and provided their summary with the outcome of their findings, the proposal will be made publicly available for voting.

Voting on the Token Launch Proposal

Once submitted, $ATLO token stakers can vote on the Token Launch Proposal until the voting period ends. The voting process is designed to facilitate community due diligence on the proposal by the Atlo community. Those that vote on the proposal will require the following:

  • Staked or vesting $ATLO tokens allowing them to vote on a Token Launch Proposal
  • $ATLO tokens staked on the Proposal itself that will be locked into the proposal for the duration of the proposal lifecycle

Proposal Outcome and Fee Structure

The outcome of the vote will determine the parameters of how the funds raised will be released back to the proposers and how launch fees are charged:

  • Premium - The proposal votes in favour exceed the premium rating parameter PremiumLaunchRating. The Atlo Protocol launch fee will be charged at the most favourable PremiumChargeFee rates and UST raised will be released according to the PremiumReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$ \frac {Yes}{TotalVotes} \ge PremiumLaunchRating $$
  • Good - The proposal votes in favour exceed the Good rating parameter GoodLaunchRating. The Atlo Protocol launch fee will be charged at the GoodChargeFee rates and UST raised will be released according to the GoodReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$ GoodLaunchRating \le \frac{Yes}{TotalVotes} \lt PremiumLaunchRating $$
  • Standard - The proposal votes in favour exceed the Standard rating parameter StandardLaunchRating. The Atlo Protocol launch fee will be charged at StandardChargeFee rates and UST raised will be released according to the StandardReleasePeriod governance parameter to the launcher calculated from the date of the Token Generation Event: $$ StandardLaunchRating \le \frac{Yes}{TotalVotes} \lt GoodLaunchRating $$
  • Rejected - The vote does not pass the tallying process and no further actions are taken on the proposal.
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