LP-0058Finalvluxvotinggovernancexluxdlux

LP-058: vLUX Voting Power

Abstract

vLUX (virtual LUX) is the unified voting power metric for Lux governance. It aggregates voting power from multiple sources: xLUX (liquid staking, LP-045), DLUX (governance staking, LP-057), and direct LUX staking on the P-chain. vLUX is not a token -- it is a computed view of an address's total governance weight. All Lux governance proposals use vLUX as the voting unit.

Specification

Voting Power Computation


vLUX(address) = directStake(address) + xLUX_value(address) + DLUX_value(address) + karmaBoost(address)

Where:

directStake: LUX staked directly on the P-chain (1:1)
xLUX_value: xLUX balance * xLUX exchange rate (LUX-equivalent)
DLUX_value: DLUX balance * DLUX exchange rate (LUX-equivalent)
karmaBoost: karma(address) * 0.001 * (directStake + xLUX_value + DLUX_value) (up to 10% boost)

Karma Boost

Addresses with high Karma (LP-056) receive a governance boost:

| Karma Score | Boost |

|---|---|

| 0-99 | 0% |

| 100-499 | 1% |

| 500-1999 | 5% |

| 2000+ | 10% |

The boost is multiplicative on the base voting power, rewarding active participants.

Governance Process

1. Proposal creation: requires 100,000 vLUX minimum

2. Voting period: 7 days

3. Quorum: 10% of total vLUX supply must vote

4. Approval threshold: >50% of votes cast (simple majority)

5. Timelock: 48-hour delay before execution

Proposal Types

|---|---|---|---|

| Parameter change | 10% | 50% | 48h |

| New market/pool | 10% | 50% | 48h |

| Emergency action | 5% | 66% | 0h (immediate) |

| Protocol upgrade | 20% | 66% | 7 days |

| Treasury spend | 15% | 50% | 48h |

Delegation

vLUX can be delegated to another address for governance:

Delegator retains staking rewards but gives up voting power
Delegation is per-source (can delegate xLUX but keep DLUX voting power)
Re-delegation is instant (no unbonding)

Snapshot Mechanism

Voting power is snapshotted at the block when a proposal is created. Changes to staking or holdings after the snapshot do not affect the vote. This prevents flash-loan governance attacks.

Security Considerations

1. Cross-chain voting: direct P-chain stake is read via Warp message. The voting contract verifies the Warp signature before counting P-chain stake.

2. Double counting: the aggregation ensures no LUX is counted twice. LUX staked on P-chain is not also counted if it backs sLUX/xLUX.

3. Plutocracy mitigation: Karma boost gives active small holders proportionally more weight than passive whales.

Reference

| Resource | Location |

|---|---|

| vLUX governor | github.com/luxfi/standard/contracts/governance/ |

| Governor | LuxGovernor.sol |

| vLUX aggregator | VLUXAggregator.sol |

Copyright

Licensed under the MIT License.