Governance Token Utility

The Nebula token plays a central role in governance, empowering users with voting rights and incentivizing participation.

Voting Power

• Determined by the number of tokens a participant holds or stakes in the protocol.

• Staking Nebula tokens enhances voting power and earns participants additional rewards.

Proposal Submission

• A minimum token threshold (e.g., 1% of total supply) is required to submit proposals.

• This ensures that only serious and well-considered proposals are submitted.

Incentives for Participation

• Active participants in governance earn rewards in Nebula tokens.

• Rewards are distributed proportionally based on voting activity and the number of tokens staked.

Equalizing Influence: Quadratic Voting

• Quadratic voting prevents large token holders from exerting disproportionate control by making the cost of additional votes increase quadratically.

• This system amplifies the voice of smaller holders, promoting a more democratic decision-making process.

Community Engagement

• By leveling the playing field, quadratic voting encourages broader participation in governance, strengthening the protocol's alignment with its user base.