Posts

How to Delegate Your Voting Power on KyberDAO

avatar of @brennanhm
25
@brennanhm
·
0 views
·
2 min read

On July 7th, Kyber Network launched their long-awaited DAO (Decentralized Autonomous Organization). Token holders can now stake their KNC tokens, vote on protocol changes, and collect rewards if they actively vote on proposals.

Epoch 0, which lasted one week, is now over, and Epoch 1 has begun. In Epoch 2, voters will be able to claim their first batch of rewards. All Epochs except 0 will last for two weeks.

The first proposal was submitted to the DAO on July 14th and is polling the community to see how the rewards should be divided up between Voting Rewards, KNC Burning, and Reserve Rebates.

  • Voting Rewards: KNC holders receive rewards (in ETH) from trading activity on the network.
  • KNC Burning: A portion of the collected fees are burned, permanently decreasing the supply of KNC.
  • Reserve Rebates: Rewards that go to Reserves based on their performance

One complaint many users have been making is that the ETH gas fees to stake and vote are higher than the amount they'll earn in voting rewards. It seems that only investors with large sums of KNC will find it worthwhile to vote on every proposal.

One way for tokens holders to save on gas fees is to delegate their voting power to a group who will vote on their behalf. Do keep in mind that your delegate will take a small portion of your rewards.

Staking and delegation can be done on kyber.org using an Ethereum wallet such as Metamask.

If you are signed in, hover your mouse over your ETH address at the top and a field will appear where you can enter the Ethereum address of the group you wish to delegate your voting power to:

Kyber Network has listed a few pools that you will be able to delegate your voting power to including:

  • Unagii.com by StakeWithUs
  • StakeDAO by Stake Capital
  • Kyber Community Pool

According to their Twitter accounts, audits are still underway for Unagii.com and the Kyber Community Pool. Once completed, there should be an ETH address provided that you can delegate your tokens to.

One more option is to use the xToken framework to convert your KNC tokens into "xKNC" tokens. aKNC will always vote to increase Voter Rewards and bKNC tokens will always vote to increase Reserve Rebates. Moreover, xKNC claims ETH trading fees on behalf of stakers and reinvests them into KNC.

Sources: https://blog.kyber.network/vote-on-the-first-kyberdao-proposal-brr-1-eca92047f0a5 https://medium.com/xtoken/introducing-xtoken-2fd50d0f943b