The following is a breakdown summary of the currently proposed “Governance Actions” part of CIP-1694. The current design is still subject to change. We will keep the text current and make any necessary updates in the event of any changes to CIP-1694.
Currently, six different governance actions have been proposed to be executable on the blockchain. Any ada holder can submit these actions simply by submitting a transaction.
These governance actions have specific deadlines, defined as future epochs, by which they must be enacted, or they will be dropped. For a governance action to be ratified, the relevant stakeholders must vote.
If voting thresholds are not met before the deadline, the governance action expires and is automatically dropped. They can also be dropped without being enacted if a motion of no-confidence in the current Constitutional Committee is passed.
There are six different sorts of governance actions proposed. These are:
1. Motion of no-confidence [in the current Constitutional Committee]
2. New Constitutional Committee and/or quorum size
3. Updates to the Constitution
4. Hard-Fork Initiation
5. Protocol Parameter Changes
6. Treasury Withdrawals
As stated before, one of the core principles of on-chain governance and CIP-1694 is that any ada holder has to be able to submit a governance action. To avoid spamming the network, ada holders must deposit a fixed amount of ada when submitting a governance action on-chain. The deposit will be returned immediately when a ratified action is enacted, the action expires, or a ratified action is dropped.
Governance actions will count as being ratified after passing through an on-chain voting process. Different governance actions have other approval/ratification requirements, such as approval by the Constitutional Committee, DReps, and SPOs. For a breakdown of the mentioned distinct groups, read here.
It is currently proposed that no more than one of the six governance action types can be staged for enactment in any given epoch. As a drastic measure, DReps and SPOs can pass a motion of no-confidence in the current Constitutional Committee. Thereby dissolving the Constitutional Committee and forcing the creation of a new one. As the committee enters a state of no-confidence, all prior actions that have not been enacted (whether or not they have been ratified) are immediately dropped/canceled.