Liquid Governance

Typically, holders of cross-chain LSTs give up their voting rights in favor of a liquid, yield-bearing asset. However, by using liquid governance on Pryzm, users can take back their right to vote. When an asset on Pryzm is bonded into a cToken, a user can still vote on proposals using the Governance feature. Since both cTokens and pTokens represent an underlying staked asset, they can both be used to specify votes on proposals, which are mirrored on the Pryzm UI from an origin chain. Pryzm aggregates your votes and relays them to the origin chain, allowing cToken or pToken holders to vote on proposals.

Leveraged Voting

Leveraged voting power is a feature of Liquid Voting that allows you to vote with more weight than your actual share of assets. This is possible because not all pToken holders may choose to vote on every proposal, leaving some remaining voting power unused. For example, suppose Pryzm has 100 ATOM staked, which means there are 100 pATOM in circulation. If only 5 pATOM holders decide to vote on a proposal, they can use the remaining 95 pATOM as leverage and vote as if they had 20 pATOM each, instead of just 1. This way, they have more influence on the outcome of the vote, while still respecting the total voting power of Pryzm. This democratizes voting and prevents validators from having too much control over the decisions.