eIP 19: Increasing the amount of votes necessary for the proposal threshold and quorum

[eIP] Euler Improvement Proposals
1

Increasing the amount of votes necessary for the proposal threshold and quorum

  • Title: Increasing the amount of votes necessary for the proposal threshold and quorum
  • Author(s): Ralsambek (delegate)
  • Submission Date: 13.08.2022

Increasing the amount of votes necessary for the proposal threshold and quorum

Simple Summary

This proposal offers to increase efficiency of the Governance process by increasing proposal threshold and quorum to 10 k EUL.

Motivation

The motivation behind the proposal is to lower the risk of manipulation of the Euler governance via Snaphot.

As of now, the number of votes sufficient for Quorum is 1k.

  1. However, based on the data provided in the EulerFinance Documentation (https://docs.euler.finance/governance/eul), it is assumed that the current number of EUL tokens in circulation is approximately 8 millions. That means that Quorum equals just 0,0125% of the current circulation.

  2. At the same time, it is clear that not all the token holders take part in the voting on a regular basis. Analysis of the data available for the previous voting (Snapshot) shows that the average number of votes participated in the polls amounts to 35,5k and the average number of voters is 434.

850Ă—427 83.3 KB

  1. It was registered during the voting, that some wallets possess (or act as a delegate) an amount of EUL that is several times greater than the Quorum. For example,
  • 0xf69EA6646cf682262E84cd7c67133eac59cef07b = 3k EUL
  • 0xeD95cbd2185924807e3B893B7E7Ac5dFE2efe33F = 5k EUL
  • 0xf69EA6646cf682262E84cd7c67133eac59cef07b = 5,4 k EUL
  • 0xD178F2d93B92Ac47cf51a899463Eca8acC37A8D5 = 20 k EUL
  • etc.
    It means that a small group of people or even one person could pass a quorum and accept/reject a proposal in their own interest disregarding the possible outcome and consequences of a decision for the Protocol in general.

Based on the assumptions mentioned above, I suggest:

  1. Increasing the number of votes necessary to proposal threshold on the Snaphot to 10 k (0,125% of the current circulation).

  2. Increasing the number of votes necessary to reach Quorum for the Snaphot voting to 10 k, (0,125% of the current circulation).

Benefits

  • Increase legitimacy of votes
  • Prevent low cost governance attacks.

Downside

  • Makes it “harder” for a proposal to be put to a vote and passed.

Voting

“Yes” -

  1. Increasing the number of votes necessary to proposal threshold on the Snaphot to 10 k (0,125% of the current circulation).

  2. Increasing the number of votes necessary to reach Quorum for the Snaphot voting to 10 k, (0,125% of the current circulation).

“No” - Do nothing

2 Likes
2

Good proposal. I will be voting in favor.

1 Like
3

sure yes!

btw i’m envious on those big whales…

i have no $eul at all lol.

1 Like
4

Thanks for the support guys !

5

We are not currently suffering from spam proposals or governance attacks from the low thresholds, but the circulating supply is ramping up so I agree it makes sense to take a proactive step to increase these thresholds now.

1 Like
6

Hey guys, Figue from Paladin.

Small note: we believe having a Proposal Threshold equal to the Quorum would open up to potential governance attacks as it would someone creating a proposal has the option to pass it unless he has votes against him.

While this is currently a small issue as governance is still on Snapshot, it is good to avoid building on shaky grounds, especially when we know that on-chain is the goal.

We’d recommend lowering the proposal threshold to 5,000 EUL and raising the quorum to 15,000 EUL.

1 Like