We currently see ~10 large GTC token holders with the majority of on chain voting power, and ultimately decide most on/off chain decisions. I want to change this, and one of the first steps will be to lower the thresholds so that smaller token holder’s voices will have a larger presence in the process.
We have needed to keep a number of folks above 1MM to ensure proposals can be created, but by lowering the thresholds, we can lower the amount of GTC of individuals and enable the community to more broadly decide and participate in impactful ways.
It is hopefully no secret that token delegation from larger GTC token holders is why the top 10 have the token delegation allocations they do. This has largely been to empower those with the most context to help lead and guide governance. What this actually created though is a group that feels they cannot dissent, and a community that has a diminished voice in the process.
Our current v3 gov process outlines the following:
There are two kinds of votes, off-chain and on-chain:
- Off-chain voting takes place on Snapshot and is required before any vote can be moved to an on-chain vote (if necessary). The vote period is 5 days. Use this template for reference
- On-chain voting is required in addition to Snapshot voting for proposals that would move GTC from the DAO treasury or make other key changes to the structure of the DAO. Gitcoin will be using Tally to upload on-chain proposals. The vote period is 5 days. Use this template for reference.
There is also a call out on post about quorum requirements – ie, a need for 2.5M GTC to participate in all votes for the vote to be considered valid.
Lowering the voting threshold opens us up to more governance attacks if large amount of tokens are acquired. This can be mitigated through delegation to a couple of key long term steward token holders who perhaps don’t activate those wallets unless an attack is visible. This is common and you can see this with Uni when key votes haven been decided by largely silent voters to help protect the network.
I would like to have us vote to amend our v3 governance process (introduce a v3.1) that amends these in the following ways:
1. New quorum threshold of 1MM GTC instead of 2.5MM GTC for both on chain and off chain voting
2. Lower initial proposal threshold down to 150k GTC from 1MM GTC
3. Maintain time and duration process as outlined above**
Would love feedback on this ahead of the S20 budget votes to allow for more impactful community participation.