The Jet Governance Process
The JET Token
Jet Protocol's native Solana-based SPL token, JET, is a utility token that grants governance rights to holders, in addition to incentivizing early users of the protocol and collaborators. The utility properties of the token will expand as the protocol continues to grow.
The JetGovern app enables holders of JET, including governance and ecosystem participants, to partake in the governance of the protocol and promote a more inclusive and democratized consensus on Jet Protocol’s features and growth. Governance proposals, termed JDAPs (Jet DAO Advancement Proposals), will begin following The Retroactive Airdrop Event. JET staking is the entry point to the economic and governance life of the protocol.
The Retroactive Airdrop Event and JET Staking
Upon the release of the JetGovern app, eligible users will gain access to a claiming interface for their retroactively airdropped JET tokens based on their historical usage of the protocol.
Users from permitted jurisdictions that interacted with mainnet in any significant capacity before the snapshot on 16 November are eligible. In addition, if that user interacted with devnet from the same wallet address, a bonus was applied. Here is an illustration of the JET Retroactive Airdrop eligibility flow:
It is important to note the following about The Retroactive JET Airdrop:
- Users should ensure to have SOL in their wallets before accessing the JetGovern app. The recommended amount to have is 0.1 SOL
- Users will have to pass the SMS verification process from a permitted jurisdiction before gaining access to JetGovern features. Absolutely no data on the phone numbers are recorded by Jet, nor by the SMS verification provisioner. It is simply to verify a user’s location.
- Users have 90 days from the announcement of the airdrop to claim. After 90 days, unclaimed tokens are directed to the JetDAO treasury for future allocation.
- 100% of the user’s airdrop is automatically staked within the JetGovern module upon claiming and will begin to earn yield within the next week.
- If a user wishes to unstake, 100% of the staked JET is subject to an unbonding period of 29.5 days. Users will not be able to transfer tokens before this period has elapsed and will not receive any staking rewards during this period. Tokens in the unbonding period are also not eligible for casting votes on proposals in the governance module, and any votes on active proposals are rescinded when choosing to unstake.
- Staking APR is dependent on several factors including the proportion of JET that a user has staked in relation to the total JET staked on the protocol.
- Holders of JET who acquired the token during the IEO period or on exchanges are also able to stake for rewards and voting.
The Jet Governance Process: Asset Onboarding
The JetForum serves as an avenue for off-chain governance and has seen several proposals from representatives of projects across the DeFi ecosystem for potential collateral assets to be added to the protocol. These proposals will follow the framework outlined in the asset onboarding guide. They will start by submitting the Asset Onboarding Template. Some examples of these asset onboarding proposals spurring discussions in the forum include Serum (SRM) and Marinade Finance (mSOL). Angle Protocol has also recently submitted the onboarding template proposing AgEuro as an asset type. Community members have shared their opinions in agreement or opposition to these proposals, citing important factors like liquidity, risk, and legal implications. By following the onboarding process and successfully progressing through it, an on-chain vote by JET stakers will be held for the asset in question.
The launch of JetGovern with the kickoff of the retroactive airdrop event will fuel on-chain governance with the JET token, allowing stakeholders to begin to see tangible efforts made on proposals. As defined in the Asset Onboarding Guide, proposals must go through some phases managed by stakeholders in the governance process before the on-chain token vote and eventual acceptance and implementation or rejection of the proposal.
Phase 1: Pre-Screening
Affected Stakeholders: Interested Parties, Governance Committee/Facilitator
Proposals begin life as an idea about how to contribute to the protocol and its offerings, with one or more Interested Parties who are willing to propose and discuss the idea with the community. The Interested Party submits the proposal for review in the forum and the Governance Facilitator reviews the proposal for completeness. If the proposal is satisfactory it is approved for the next phase.
Phase 2: Discussion and Review
Affected Stakeholders: Interested Party, Jet Community, Governance Committee/Facilitator
This phase of community review is conducted in parallel with the internal review period and is structured as a public discussion on the proposal’s merits or shortcomings. At this stage, the Jet Community is encouraged to challenge the proposal and share their opinions on the potential impact to the protocol if the proposal is implemented.
Interested Parties are encouraged to engage the community in the forum and at community calls with an open Q&A session. This review period is expected to last for at least a week with forum polls created to gauge sentiments that guide the internal CODEC review process carried out by the Governance Committee. The governance committee holds ultimate responsibility for the approval or rejection of the proposal at this stage and the sentiment of the community is used to prioritize applications for review. The domain experts within the governance committee carrying out internal review must reach a unanimous agreement after reviewing the proposal against technical, reputational, legal risk, and protocol engineering criteria to defer the proposal or accept it for a token vote.
Phase 3: Voting
Affected Stakeholders: Governance Committee, JET token holders
At this stage, the proposal has been accepted by the Governance Committee and published on the JetGovern app for the vote by JET token holders. As mentioned previously, users must stake their JET tokens to the governance module to vote on proposals for a fixed period.
JET stakers may vote for or against a proposal, and soon, they may choose to abstain. Proposals pass by simple majority of cast votes, where the number of accounts that have not voted in either direction are inconsequential to the result of a proposal. There are two possible outcomes during the voting period: “Rejected” and” Passed”. A proposal advances to the next phase when >50% of the votes made are “in favor” of that proposal. A majority of “against'' votes means the proposal reaches its end. All that matters to pass is that the number of cast "approve" votes exceeds the number of cast "deny" votes.
Phase 4: Implementation
Affected Stakeholders: Governance Committee, Jet Core
At this stage, the proposal has been accepted by the community, and consensus is reached after a finalized token vote. The Governance Committee will publish the accepted proposal on the JetGovern app and Jet Core can begin development on the proposal for eventual implementation. As the protocol matures and the DAO progresses towards an increasingly decentralized structure, JetDAO will be able to accept proposals from engineering contributors outside of JetCore.
Governance is critical for putting resources to work in the best interest of the protocol, and JetGovern is a big step towards making decentralized governance useful, powerful, and practical. We welcome our community of globally distributed stakeholders to help us forge new flight paths and reach greater heights!
Disclaimer: The statements, proposals, and details contained above are subject to change. We are in early-stage development and may need to change dates, details, or governance as a whole based on the protocol, team, legal or regulatory needs, or due to developments of Solana.