Design Rationale

Design Rationale

There are two ways to propose a change to the Namada protocol:

  1. On-chain - A proposal is submitted to the Namada blockchain, and the Namada blockchain handles the voting process.
  2. Off-chain - A proposal is submitted to a focal point outside of the Namada blockchain, and the voting process occurs off-chain.

Public Goods Funding

A special type of on-chain proposal is the public goods funding proposal. It is described in more detail under the Public Goods Funding section.

Spam resistance

Namada governance implements a spam resistance mechanism to prevent the network from being spammed with proposals. This mechanism is based on the fact that a proposal must be submitted with a deposit of NAM tokens. This deposit is returned to the proposer if the proposal is accepted, and burned otherwise. This is only possible if the proposal is submitted on-chain, as off-chain proposals are not able to submit a deposit.