Zerogoki REI stake and Governance launch
REI is the core asset of Zerogoki protocol and stands for the governance right of the system. The basic parameters and supporting assets of the current agreement are determined by the founding team and can be adjusted through DAO. The content of decision-making includes but is not limited to synthetic asset listing/delisting, the calculation method, and proportion of mint taxation, the emission speed of liquidity incentives and the distribution of each pool, the use of project reserves, etc.
The initial circulation of REI is 42,000,000 and the distribution plan is as follows:
To encourage REI holders (including REI liquidity providers) to participate in Governance, 15% of the REI initial allocation is set to distribute to them. In addition, 50% of the protocol tax income will be rewarded to these two groups-Governance participants and Liquidity providers.
Since mint and redeem will directly affect the total amount of REI, the system has set up a minting tax mechanism to increase the costs of frequent interaction with the minting contract. The tax is collected as revenue of protocol and sent to the system treasury, starting from the system launch. Till now the treasury has collected a remarkable quantity of tax. At the time of governance launch, the system will burn this part of the income as a universal reward for all Zerogoki asset holders.
After the REI stake function launch, the tax generated for every mint/redeem transaction will be transferred to the reward pool, REI stakers will constantly receive protocol income and share the growth with the system.
50% of collected tax income is assigned to reward REI holders. Since the tax is charged by burned assets of one mint/redeem transaction, the component of tax includes all kinds of Zerogoki internal assets (REI and zAsset). For REI stakers, only collected REI in tax will be distributed in the initial stage, for efficient and low-cost distribution.
Asset holders have two methods to participate in governance.
1. Stake REI in xREI Pool
xREI is an interesting bearing token and stands for voting rights. 1xREI =1 vote. xREI has a dynamic convert ratio with REI which is determined by tax income level. xREI withdrawal has a 21-day lockup period. When a user applies to withdraw REI (with redeeming xREI at the same time), the earning distribution will pause and after 21 days his REI can be claimed. xREI is also a tradable asset.
2. Lock REI-USDT LP in governance pool
REI-USDT LP holders need to lock their LP for 21 days to get their voting rights. The amount of LP which is equal value with 1 xREI, equals 1 vote.
You may use the snapshot page to upload new proposal and vote with xREI（20xREI minimum）: https://snapshot.org/#/zerogoki.eth
This reward-releasing process will go in steps. Currently, for the stability of Zerogoki, REI staking will only receive a 50% system tax fee reward. The REI distribution reserve will open for users. And REI-LP holders’ governance channels and rewards will be released in the next step.
The roadmap of the complete Governance module is as follows:
- REI token staking, voting, and tax income distribution.
- REI-USDT LP locking, voting, and tax income distribution.
- REI holders (including LP holders) staking, voting, and REI distribution.
How to be a participant in REI governance for now
Only xREI holders are eligible to propose and vote in Zerogoki governance since we are in the first period of governance completion.
Holders with more than 20 xREI can submit a proposal on the Zerogoki snapshot page. Only when the amount of votes is higher than the amount of 5% circulating xREI can pass through.