Gauge Voting
The process for voting on token gauges on MinMax Finance
Last updated
The process for voting on token gauges on MinMax Finance
Last updated
On receiving veMAX tokens, an account may choose to vote using the gauge system. Gauge voting is what determines how HND emissions are released each week. A fixed number of MAX are distributed based on the proportion of vote weight that each qualifying asset's gauge has received, with all assets eligible to receive MAX emissions on each chain-based deployment having their own gauge contract.
If you have staked MAX for veMAX then it makes economic sense to use your vote weight to grant emissions to the gauges of the assets you yourself intend depositing into the protocol. Once an asset, B3 pool for example, has been deposited and B3 LP received, these B3 LP tokens can then be staked in a farming contract using the regular UI to receive a pro rata cut of the MAX assigned to that gauge.
The distribution of MAX across gauges is updated on a weekly basis (Thursdays at 0:00am UTC), though votes made by an account will remain in place unless altered by the account holder. It is also important to note that there is a 10-day cooldown period on vote transactions. An attempt to submit additional vote transactions on the same gauge prior to the conclusion of the cooldown period will result in a failed transaction (as well as the display of an incredibly high gas price).
The gauges that are available (that hold assets that can be used to receive MAX emissions) are currently limited to those implemented by the team. In future, however, governance will play the core role is gauge creation and HND allocation.
When voting on gauges your vote weight can be distributed proportionally across each gauge. The image above shows an account that has granted 100% of their vote weight to B3. To amend this, the B3 gauge would need to be reset. The reacquired vote weight could then be distributed across the other gauges as the veMAX holder pleases. It would be necessary, however, to wait 10 days to apply a decreased proportion to the B3 gauge due to the 10-day cooldown. An example of how they might redistribute their vote across all three gauges could thus be:
Reset B3 Gauge
Set XIMB3Meta Gauge to 60
Set E3 gauge to 20
Wait 10 days
Set B3 to 20
They would now have their vote weight distributed 60/20/20 across XIMB3Meta/E3/B3.
Note: As each chain will initially have its own gauge system deployed, voting on one chain will not impact how MAX are distributed on another. This, combined with the cooldown, encourages the development of an environment of tactical voting and liquidity assignment that rewards attentiveness to the protocol.
