RFC: Increase Snapshot Quorum

General Proposal RFC
1

Title: [RFC]Increase Snapshot Quorum
Author: @Matt_StableLab, @Bobbay_StableLab
Related Discussions: eIP 50
Submission Date: 02/24/23

Simple Summary

This proposal aims to increase the Snapshot quorum to a more suitable level since a lot of new voting power has recently become active in Euler DAO and a few individual voters can reach quorum on their own.

Abstract

A quorum ensures a wide range of people voice their opinion, but in the current state, these voices can be unheard since a few active voters can reach quorum on their own.

This proposal will raise the Snapshot quorum to ensure more voters participate and more voices will be heard and represented in making decisions for Euler DAO.

Motivation

Since the latest quorum increase, there has been an increase in voting power and active participation. In its current form, the quorum is useless since it is too low.

9 of the last 10 votes could have been decided by a single voter. This is not healthy for the DAO as it prevents many voices from being heard.

Specification

Since the last quorum increase, there have been 3 large increases in voting power used. Until recently only one voter had enough to meet the quorum on their own. Now with new members and added voting power, there are 3 voters that could reach quorum on their own.

There are 2 active voters (voted in more than 70% of the last 10 votes) and 1 not as active voter with at least 100k EUL voting power totaling 1.22 Million votes.

Address Voting frequency Voting power Voting power change since last quorum update
lemniscap.eth Consistent 682k +390K EUL
0x389618BD93f077E1e526d3B1a03a4C5C64aE800d Inconsistent 437k +437K EUL
franklindao.eth Consistent 100k +100K EUL

There were also two recent medium sized increases in voting power that bring two additional delegates close to reaching the current 50k quorum on their own.

Address Voting frequency Voting power Voting power change since last quorum update
0xbE91513e66073237cDcc60e2154b5bb250da506d Inconsistent 38k +38K EUL
Stablelab.eth Consistent 35k +35K EUL

Looking at the most recent votes, hitting at least 200k has not been a problem as it has hit in each of the last 10 votes. Increasing quorum to 200k would be a more suitable number for now. Even if top 2 addresses with who have voted were to stop voting, reaching the new quorum would still be possible.

Next steps

This would require Euler Labs to adjust the Snapshot quorum, and all future votes will now require a minimum of 200k Euler Voting power & majority to pass.

Relevant Links:

eIP 50
Most recent vote
eIP 52
eIP 53

Pros and Cons of This Proposal

Pros

  • Forces more votes to be used which increases the safety of the DAO
  • Could cause large token holders to either start to vote or delegate their voting power

Cons

  • Some proposals could fail to meet quorum
  • Could delay governance process in quorum fails
  • Yes, in favor of the proposal
  • No, against the proposal
  • Modify the proposal

0 voters

2

Let’s try it out, in support

3

In favour of the proposal.

4

Hi @Bobbay_StableLab! Thanks for the proposal. Indeed recently the amount of voting power participation in the voting has significantly increased. However, I have some concerns with regard to the quorum increase:

  1. The quorum has been increased earlier this month. Probably, too often quorum revision is not very good. Im afraid users might be lost in regular rules changes.

  2. Currently, there are 4 major voters

  • lyuben (437 k)
  • Lemniscap (421 k)
  • Penn Blockchain (100 k)
  • BlockEnthusiast (75 k)

With them participating in the voting there will be no problem to reach consensus. However, what if they do not participate coz they are not interested in the proposal. For example, the Grant Proposal 7: Anthias x Euler Alert System Grant Proposal. It received 210 k votes with 3 other major voter did not participate. What I worry about is that in order for the proposal to pass reach the quorum it needs participation of at least one of top-3 voters. Therefore, if 3 major voters do not want a proposal to pass, they do not even need to vote against (by doing this they could be questioned why) but just do not participate.

In this regard, I would suggest that we wait at least one month to see wether the same level of participation continues.

5

I am assuming now that the Questbook proposal has passed, grant requests no longer need to flow through snapshot, however the risk of whales not voting on certain proposals remains.

I would suggest the following amendment to this proposal:

‘In order for the quorum to increase, the snapshot vote to increase quorum should have over 200K voting power’

6

@Raslambek

  1. I don’t agree with there being an issue with another quorum revision so soon. It’s not a complex change that requires work on the contributor end.

However, saying that, I agree with your following statement and we are happy to put a pause on this to see continued activity for the next month.

Depending on the activity, we don’t have to stick to 200k either. We can revisit this in a few weeks and a more suitable option might be between 100, 150k or 200k etc.

@jengajojo

Appreciate the feedback jenga. I think we’ll put a pause on this, following @Raslambek feedback and gauge a better idea in a few weeks.

3 Likes