Every proposal that is put before the Service Nodes is published on the Loki blockchain. If a given party wants to present a proposal to the Service Nodes, the party must construct a proposal transaction. Proposal leaders can submit their proposals at any time during the period in which funding blocks are made, which is every 43,000 blocks or approximately every 60 days. However, it should be considered that the closer they submit to the beginning of each proposal phase, the more time they have to gain votes from each Service Node. 

Loki Proposals

Each Service Node carries a specific key for voting. Each Service Node signals their support, dissent, or abstinence for each active proposal on the blockchain. Service Nodes can vote on proposals as soon as they are committed to the blockchain until the next funding block is created. Before the creation of the next funding block, a swarm is chosen to collect a tally of all of the votes that have been cast. This information is then used to construct the block which allocates a reward to the winning proposals. Proposals are only passed when the result of the yes votes minus the no votes is equal to 15% of the node count on the Service Node network. 

Loki Voting

All proceeds from the Loki Funding System are paid through funding blocks. Funding block rewards operate similarly to traditional block rewards, as an entirely non-custodial way to distribute Loki. Every funding block contains 1.25% of the overall block reward for the entire funding block period. To construct a valid funding block, miners must be able to assess proposals that have reached the required percentage of votes by using the information that the Service Nodes commit to the blockchain, which contains both the addresses to be paid and the state of all votes. All Service Nodes will validate the miners funding block and discard any funding blocks which pay invalid addresses. If the total sum of approved proposals exceed that which is available in the funding block, the miner will create the funding block to prioritise proposals that were committed to the blockchain earlier. Remaining approved proposals will remain committed to the blockchain until the next funding block. 

Loki Funds Distribution

- Proposals
- Voting 
- Funds Distribution

University of Connecticut

The Foundation is subject to both its own governing constitution and the laws of Australia, which could prove to be a limiting factor in the range of decisions the Foundation can make. The Loki Funding System allows for a portion of the block reward to be acted on purely by a vote from the Service Nodes. Service Nodes represent entities from all over the world and are not beholden to input from the Loki Project Team or Foundation, allowing them to greater autonomy in the decisions they can make.

Loki Funding

https://loki.network/wp-content/uploads/2018/10/LokiWhitepaperV3_1.pdf

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