CROWD tokens are needed for the voting process and staking, among other things. Those who invest their tokens with CrowdSwap benefit from the revenues generated by the project and get to participate in the future of CrowdSwap. The decentralized approach of the project is fundamental to CrowdSwap. Concentrating 20% of the voting rights on one address is not a decentralized approach. Therefore, CrowdSwap provides additional rules that we believe contribute to the decentralization of a DAO:
- I.e., if a staker has invested 5 million tokens, he will also benefit from at least 0.5% of the distribution from the sales of the project. However, he can only participate in the governance process with the square root value of the tokens owned.
- Each month that tokens remain longer in staking or in the voters' wallet, they are added by a factor + 0.1. I.e. Every year, the voting power of the owner doubles. This way, the voting power can exceed the square root value. And large volumes of CROWD tokens in the staking secure the project and stabilize the token price.
- Every staker can make suggestions for the improvement of the CrowdSwap project. If these are supported by more than 90% of the eligible voters absolutely (each address counts only once), the proposer receives a VIP rank, which increases the number of votes again. Depending on levels yet to be worked out. (double, triple). Furthermore, VIP users can use the comment function to describe the proposals of others in the spirit of the project.
The governance process is the process of voting on changes in the CrowdSwap project. The community takes over after the essential functions of the CrowdSwap DAO have been created. Any change (e.g., development, distribution of fees, use of liquidity reserves) is due to voting for all stakers. The proposed changes are described similarly to the EIP (Ethereum Improvement Protocol) so that everyone eligible to vote can learn about the issue in advance. Only ballots received will count.