> For the complete documentation index, see [llms.txt](https://docs.eywa.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.eywa.fi/eywa-token/eywa-dao/voting.md).

# Voting

### Voting on Emission and Incentive Parameters

Every three months (every 12 epochs), the project may initiate a vote to change the parameters of token emission distribution from the  **EYWA Treasure**. 

During this voting, the following parameters are determined:

1. **The amount of emission per epoch**: the total number of **EYWA** tokens allocated for the project’s development.
2. **The percentage allocated to pool rewards** (Pools incentives).
3. **The percentage allocated to bond creation** (Bonds incentives).
4. **The percentage allocated to grants** (Grants incentives).
5. **The percentage allocated to attract external rewards to project pools** (Bribes incentives).

***

#### Voting Conditions and Restrictions

**Voting frequency**:\
Once a voting is initiated, the next one can only occur after three months.

**Parameters for voting**:\
All five parameters must be proposed for the voting:

1. Emission amount per epoch.
2. % for Pool incentives.
3. % for Bond incentives.
4. % for Grant incentives.
5. % for Bribe incentives.

**Restrictions**:

* **The sum of percentages for parameters 2-5** must total exactly **100%**.
* **The emission per epoch** cannot exceed the average emission since the DAO’s launch by more than **25%**.
* **Reducing emission** is not restricted and can be lowered to **0**, if DAO participants support it.

***

#### Initial DAO Parameters

* **Emission per epoch**: 1 262 295 **EYWA** tokens.
* * **38%** — Pool incentives.
  * **25%** — Bond incentives.
  * **0%** — Grant incentives.
  * **37%** — Bribe incentives.

***

#### Emission Distribution Algorithm per Epoch

1. **Determining the total emission volume**\
   A certain emission amount **E** is allocated from the **EYWA Treasure** (for example, the initial 1 262 295 EYWA tokens or another value approved by the DAO).
2. **Calculating staking rewards**:\
   The amount of staking rewards **S** is calculated.
3. **Calculating token volumes for incentives**\
   After deducting the staking rewards, the remaining amount is distributed as follows:

$$
Pools\_{incentives} =  ratio\_{Pools} \* (E-S)
$$

$$
Bonds\_{incentives} = ratio\_{Bonds}\*(E-S)
$$

$$
Grants\_{incentives} = ratio\_{Grants}\*(E-S)
$$

$$
Bribes\_{incentives} = ratio\_{Bribes}\*(E-S)
$$

{% hint style="success" %}
**Note**:

* The sum of ![](/files/SGJcgcS7jk0KHFkrJKKs), ![](/files/HkC7xMFUf81Zf5umXL6y),![](/files/qmu4kTL2kROpHxkuvYId)and![](/files/CTv9XaqUccF6bA6LRB9M) coefficients must be 100%.
* These parameters can be changed by DAO participants through voting.
  {% endhint %}

***

### Voting for Pools

All **veEYWA** holders can participate in weekly (every epoch) voting to distribute **Pool incentives** among the pools.

#### What are Pool incentives?

**Pool incentives** are **EYWA tokens**, allocated from the **EYWA Treasury** each epoch to attract liquidity providers to the project. DAO participants vote on how this amount is distributed among the pools. 

#### Benefit for Liquidity Providers

The more votes directed to a pool where a provider’s liquidity is located, the higher their reward in the next epoch.

#### List of Eligible Pools

Only those pools connected to the EYWA project are eligible for Pool incentives distribution:

1. **Pools created by the project before the DAO launch**.
2. **Pools added via a DAO vote**.

* Any DAO participant can initiate a vote to add a new pool.
* To include a pool in the list, the proposal must receive more than **50% of the DAO votes**.

#### Voting Procedure

Voting takes place on a separate page in the **DAO** section. To participate, a user must:

1. **Distribute** all **100%** of their votes among the available pools.
2. **Press the "Vote" button** to confirm their voting choice.

Before the end of the current epoch, a user can cancel their votes and vote again.

***

### Incentive Distribution Scheme Based on Voting Results

1. **Vote Counting Process:**

At the start of a new epoch, all **veEYWA** votes cast for pools in the previous epoch are counted. The percentages allocated by participants are converted into a specific number of EYWA tokens directed to each pool.

2. **Formula for Incentive Distribution:**

$$
E\_{pool X} = \frac{V\_{pool X}}{\sum^n\_{i=1}V\_{pool i}} \* Pool\_{insentives}
$$

where:

![](/files/UqHUlCQDdb6OfllBJ9HP) — the number of EYWA tokens allocated to pool X.

![](/files/P2kK0T2P0X518jBJisrb) — the total EYWA token amount allocated to all pools in the current epoch

![](/files/f807np96ZFP73G66od4x)— the amount of **veEYWA** votes cast for pool X.

![](/files/pnR6r7TM0iha5S2BIn0U)— the amount of **veEYWA** votes cast for pool i out of all **n** pools 

**Thus, the number of EYWA tokens allocated to a pool depends on the proportion of veEYWA votes that pool received relative to all votes.**

***

### Reward Distribution to Liquidity Providers

At this stage, all incentives allocated each epoch to attract liquidity providers to the project’s pools are distributed via **Angle Merkl** service.

#### Funds Flow Scheme:

**EYWA Treasure → Pools incentives → Gauge → Angle Merkl → Liquidity Providers**

Liquidity providers can claim their rewards:

* Through **the project’s pool interface**.
* Through t**he Angle Merkl service interface**.

***

###  Boosting Liquidity Provider Income for DAO Participants

If a liquidity provider is also a **DAO** participant, they receive **increased rewards** through a boost coefficient **B**.

#### Boost Coefficient Formula:

$$
B\_{user} = 1.5 \* \frac{D*v}{d*V} + 1
$$

where:

![](/files/f1XdSFfbsXCTNY1aP3CM) — the user’s boost coefficient (cannot exceed 2.5)

*D* — the total sum of all deposits in the pool (in USD)

*d* — the user’s deposit amount in the pool (USD).

*V* — the total veEYWA of all users.

*v* — the user’s veEYWA amount.

#### Calculating the User’s Reward:

A maximum boost of **B=2.5** does not mean the reward is simply increased by 2.5 times. The total Rewardall is divided among all liquidity providers taking into account their individual boost coefficient B. 

#### User Reward Formula:

$$
Reward\_{user} = \frac{B\_{user}\*d\_{user}}{\sum^n\_{i=1}B\_{i}\*d\_{i}}\*Reward\_{all}
$$

Where:

![](/files/JAebtwuIHVJ9omczy7GK)— the user’s reward

![](/files/VvB502QjyR84udscr3QJ)— the total amount of tokens allocated as liquidity rewards

![](/files/dJECfpeO4oMCz0UsIGCd)— the user’s boost coefficient

![](/files/YA8ZyXxNw3mwY3WVMxfU)— the user’s deposit size (USD).

![](/files/SnxrdkQ9EmW77AYHWpDR)— the boost coefficient of user i.

![](/files/H6xC3FB5otABW4VCt5wa)— the deposit size of user i  (USD).

#### Restrictions:

* Maximum boost coefficient: **2.5**.
* Rewards are distributed proportionally, taking into account each user’s deposit and boost coefficient.

**This system incentivizes DAO participants to provide liquidity, increasing their returns thanks to holding veEYWA.**

***

<br>