Proposal deposit

Why is the reason of the distribution of the proposal deposit if the proposal is not approved? I think the user in good will maybe make proposals and may not go through so I don’t understand why he should be “punished”. I can see the need to do some filtering so that interested parties cannot send spam proposals or post something inappropriate. But wouldn’t it be better if some parameter is set such as if the ratio of no to yes is greater than 5, then the proposal deposit is distributed to the interested parties?


Hi @Kha

I think the reason for the taking away the token of unapproved proposal are taken into the pool so that approved once gets the incentives for their contribution.

And Also there will be a system which will tell when the proposal is unapproved or the token from which they have to taken away.

I think the team will explain about this in details when the complete protocol is up and running


Anybody from the community is able to submit a proposal to be put up to a vote so long as they can stake a minimum amount of INDY. This minimum is set by the Governance Proposal Stake parameter.

When a user submits a proposal their INDY stake is locked until one of two conditions are met:

  1. The proposal’s voting period has ended.
  2. The proposal has been canceled.

If the proposal is voted in favor of, the stake is unlocked and returned back to the owner who submitted the proposal.

If the proposal is voted against or canceled, the stake is sent to other Governance Delegators. Thereby the depositor loses their stake.

Every early Indigo community supporter should have the opportunity to submit proposals. Resistance should be high however because when Indigo first launches there’ll be limited liquidity. It would be disadvantageous to have the possibility of thousands of proposals being submitted. If the barrier to submit a proposal is low then it could increase risks Indigo is exposed to before the protocol is adequately prepared. The expectation is that by making the initial barrier high then only a limited number of proposals will be submitted, all of which should be high-value and proposed by those who’re strongly invested in the long term success of Indigo.

In the future the Governance Proposal Stake should serve as friction to submitting proposals but not discourage people from submissions in fear of losing a significant amount of their tokens. Governance can be used to propose a lower deposit after Indigo has matured.


Thanks for explaining the reasoning behind staking INDY to make a proposal. It makes a lot of sense to keep a new project from being overwhelmed with proposals that may have limited value or are a waste of time. By making people have skin in the game by staking their INDY hopefully only high value proposals will be submitted.


Thanks for helping me better understand the mechanics of the protocol!