Managing cycles

This guide will show you how to transition to a new cycle.

Proposals and rewards in Effect operate in cycles. Every two weeks a new cycle starts, with new proposals to vote on, and old cycles are reviewed by the High Guard and eventually processed and paid out.

Everything related to cycles is managed in the daoproposals smart contracts, which contain the logic required to transation to a new cycle. This process must be initialized by an Effect Guardian by posting a few transactions to the blockchain.

Step 1: Update the cycle

The cycleupdate transaction moves Effect Network to the next cycle. Once this is done, Guardians will be able to vote for the proposals in the new cycle.

  • It can be executed by anyone once the current cycle is over.

  • Performing the action can be done directly from Bloks without arguments, or from the command line with:

cleos push action daoproposals cycleupdate []

The proposals in the previous cycle will move to Processing state.

Step 2: Process the old cycle

Once the new cycle is active, we should process the old cycle. This action will analyze all proposals and move them into Accepted or Rejected state, depending on the votes they received.

This will also recycle the cycle funds, transferring a part of it to the fee pool and a part back to the treausry. This means fees can not be claimed until this step is executed.

  • It can be executed by anyone once the new cycle has started

  • Performing the action can be done directly from Bloks. The account parameter should be your account name, which is used to pay for a small amount RAM needed to store the votes, and the cycle ID to be processed. It can also be run from the command line with:

cleos push action daoproposals processcycle [youreosaccount, 75]

Step 3: High Guard approval

As a last step, all accepted proposals must be submitted to the High Guard to be executed. This is an extra security measure that might be removed in the future.

This step only has to be performed if there were accepted proposals in the cycle.

This transaction is more involved, and there is a script available in effectai/effect-network. Instructions on how to operate it will be added soon.