Project Approval Process

While each project in the SI Pool is proposed by whitelisted impact partners that have already conducted initial due diligence, finally SI Token Holders and their delegates decide which of these projects will be included in SI Pools. Only SI Token holders who stake and risk a portion of their SI Tokens into SI Governance are eligible to vote. If SI Token Holders do not want to decide themselves which projects are included in SI Pools, they can delegate their voting power to experts like portfolio managers or aid organizations, which will make an informed decision on their behalf.

Staking of SI Tokens

To participate in SI Governance, it is necessary to stake and risk SI Tokens in order to receive additional returns of all projects in the pool. If one of the projects in the SI Pool defaults, a portion of the stake may be used to compensate for the default. Only SI Token Holders who have staked their SI Tokens (Stakers) are granted voting power to vote on projects which should be added to the corresponding SI Pool. Stakers are able to delegate their voting power to experts.

Staking of SI Tokens ensures that only those who secure (hedge) the corresponding SI Pool and bear a financial risk decide on project acceptance.

Voting on Project Proposals

Only SI Token Holders who have staked SI Tokens or their delegates can vote on project proposals and determine which projects will be included in SI Pools. In return, voters receive an additional 33.33% of SI Reward distributions from each project whose voting process they participated in. Each voter of a project, regardless of whether they voted for or against the project, will receive the corresponding SI Rewards. To learn more about how SI Rewards for voters are calculated, click here.

Only projects which reach the specified quorum (minimum number of staked SIT) and at least 75% of votes have been cast for "yes" are accepted by SI Governance and will be funded through the specific SI Pool. Voting does not consume, lock or burn tokens. Stakers of an SI pool can vote on every project proposal within the SI Pool with the amount of staked SI Tokens.

Voting does not lead to any additional risk than staking. By staking, SI Token holders hedge the entire SI Pool, risking a portion of the stake regardless of which projects they may have voted "yes" or "no" for. Voting has no influence on the liquidation of individual SI Tokens within SI Governance. All stakers in the specific SI Pool may have portions of their shares liquidated, regardless of their voting history.

Stakers can delegate their voting power to experts such as aid organizations, portfolio managers and other SIT stakeholders. For each project SI Team votes on as a delegate, a risk assessment (including risk rating) is created by external experts. It is published on the project page to support voting decision-making processes.

Delegation of Voting Power

By delegating voting power, SI Token holders allow experts to decide which projects are included in SI Pools. The staker still receives rewards for staking, however, 25% of the SI Rewards paid out for voting will go to the chosen delegate.

Any SI Holder may be a delegate. Individual delegates can be whitelisted by SI Governance and whitelisted within the Delegate Panel as experts or key stakeholders. In Phase init SI Team whitelists experts.