Delegation & Voting Rewards
This section explains about delegation and how a user can claim voting rewards for participating in the governance portal.
Delegation is an important attribute to encourage a high voter participation. Delegation means that a voter (who ideally is inactive) transfers his/her voting power to another (more active) voter without losing the ownership of the NFT where the initial voting power comes from. Delegation also allows voters to revoke the voting power that they've delegated at any point in time.
It provides a safe and easy way for voters to lend their voting power to voters that share their best interests or is more active.
This in a way is similar to how an election is run in modern day democracies. Where voters vote for politicians who will take their votes to best represent their interests.
Delegation is built directly into the NFTs and is possible only if a user stakes his MAHAX NFT.

Levels of Delegation

Delegation can work at a single level only. That is, if Alice delegates voting power to Bob, and Bob delegates voting power to Charlie. Then Charlie does not get the voting power of both Alice and Bob. The below table explains the scenario:
Person
Starting Voting Power
Alice delegates to Bob
Bob delegates to Charlie
Alice
300 MAHAX
0 MAHAX
0 MAHAX
Bob
300 MAHAX
600 MAHAX
300 MAHAX
Charlie
300 MAHAX
300 MAHAX
600 MAHAX
To achieve multiple levels of delegation we recommend building off-chain tools or periphery smart-contracts that interface with the current implementation.

Voting Rewards

Voting rewards are a way to incentivize governance participants to partake in votes and become more active in decisions made within the DAO. A certain budget of MAHA is kept aside (coming from MAHA's monthly inflation that is used for rewards to governance voters).
Voting rewards are given to users who also delegate their power. That is, if you delegate your voting power to Alice and Alice participates on your behalf and receives MAHA rewards, those rewards are distributed between you and Alice depending on how much percentage of MAHA that was voted was yours.
This example explains a little more in detail. Assume Alice delegates her voting power to Bob and a 1000 MAHA reward was given to voters and Bob owned 10% of all the voting power that participated in the governance.
Person
Voting Power
Voting Power After Delegation
Rewards for Participation (1000 MAHA)
Alice
750 MAHAX
0 MAHAX
75 MAHA
Bob
250 MAHAX
1000 MAHAX
25 MAHA
Everyone Else
9000 MAHAX
9000 MAHAX
900 MAHA
Voting Rewards are currently calculated off-chain using merkle proofs to maintain lower gas costs. Future implements will execute on-chain in a completely decentralized manner.
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