Today we are announcing the addition of a great new feature — stake pool voting! From the beginning of the project, we’ve talked about our desire to truly provide decentralization, and stake pool voting is a critical step in that journey.

Stake pool voting is live now. Once live, it will allow all liquidity providers to vote on where the pool/s that they have their liquidity in will stake their ADA.

Voting on stake pools puts the power back in the hands of the platform users. It allows all those with liquidity provider tokens to have a say in which stake pool will grant them rewards. Users will be able to choose from a wide list of pools and therefore influence which pool their ADA will be staked in. We are not supporting voting for the Initial Stake Pool Offering pools because it would lead to loss of staking rewards.

To determine where the ADA is staked, each pool will hold a simple vote. To be considered successful, at least 25% of votes (representing 25% of all liquidity provider tokens issued within the pool) must be cast. If the votes are not cast, the ADA will default back to the current pool in which it is staked.

How It Works

All liquidity pools that contain ADA will be eligible for voting. When a user provides liquidity in a pool, they will become eligible to vote on where to delegate the ADA contained in the liquidity pool. All users need to do is choose their preferred pool.

Users use their voting power to vote. Voting power is the minimum of deposited Liquidity provider tokens in a given epoch.

What does this mean in practice? Let’s say you deposit 100 liquidity provider tokens for voting in the middle of epoch 335. Your minimum deposited LP tokens in epoch 335 will be 0, thus you will have no voting power in this epoch. If you keep your 100 LP tokens deposited, your minimum deposited LP tokens in epoch 336 will be 100, which means your voting power in epoch 336 will be 100 and you will have a chance to change where the ADA from the Liquidity pool will be delegated.

If the user already has some deposited liquidity provider tokens in a farm for at least one whole epoch, they could use their power for participation in current epoch voting. By applying votes the depositing itself doesn’t change, it just gets another function.

A liquidity provider is able to manage their voting power anytime, but it is important not to forget that removing votes will affect current epoch voting while adding new votes impacts the subsequent epoch, as that is the epoch when the added tokens will be deposited for the first time for its entire 5-day length.

Example of a Staking Pool Vote

Imagine that there are 100 LP tokens issued, distributed between 4 liquidity providers:

• User A has 32 deposited LP tokens for Stake pool X
• User B has 18 deposited LP tokens for Stake pool Y
• User C has 20 deposited LP tokens for Stake pool Y
• User D has 30 votes but didn’t vote

These liquidity providers receive one vote for each LP token (1 ballot = 1 LP token). We assume that users made their informed decision to support one or another stake pool via a vote cast in the particular part of the UI interface. We also assume that users A, B, and C had their LP tokens deposited for the whole duration of the epoch.

User A has the most liquidity and has 32 voting power, but User B and User C voting for Pool Y have in total voting power: 38. More than user A.

There has to be at least 25 % of all issued LP tokens participating in the voting for one particular liquidity pool. For the example above the participation is 70%, so the vote is valid. As a result, the elected pool for the next epoch will be Pool Y. The staking agent will ensure that the results of the voting are honored and will delegate the liquidity pool to the elected stake pool.

Check out our earlier Youtube video that discusses staking HERE.

As always, the WingRiders team is continuing to build out further features and elements of decentralization for the WingRiders platform. Please feel free to give us feedback via the relevant channels in Discord.

Peace.

The WingRiders Team