[PASSED] BIP-3 Reduce Proposal Threshold

[BIP-3] Reduce Proposal Threshold

Voting will be open here 2021-10-07T04:00:00Z


Background

The current Proposal Threshold is set to ~10M BIT tokens. See BitDAO docs.

Note that the Proposal Threshold is the minimum number of BIT an account needs to submit a proposal, and Voting Threshold is minimum number of BIT that needs to vote on that proposal to be valid (currently 100M BIT).

Other DAOs have lower Proposal Thresholds, for example:

AAVE - 1 AAVE ($300)

Sushi - 20000 SUSHIPOWAH (~$200,000)

UNI - 1000 UNI (~$20,000)

Nouns - 1% of Nouns supply (~$200,000)

Reduce Proposal Threshold

Benefits

Enable more ideas to be proposed.

Downsides

Increased need for moderation. For example: 1) Proposals that do not meet the minimum vote duration of 7 days; or 2) Proposals that are not executable such as “lets partner with DAO XYZ”.

In our opinion, token swaps and partnerships require negotiation and analysis of key terms (such as exchange rates, vesting periods, use-cases for BIT token) and reasons why this cooperation makes sense for both parties. They are also often contingent on discussions and polling in the partner communities. These discussions need to happen before a token swap proposal goes to vote.

Token swap coordination, exploratory discussions and proposal ideation are more suited to the BitDAO Discourse and the BitDAO Discord.

Recommendation

While proposal templates, guidelines, and moderation policies have not yet been defined, we recommend keeping the proposal threshold on the higher end: approximately 200,000 Delegated BIT. Let’s discuss in the comments.

Within 7 days we will submit a formal Snapshot proposal with the most commonly supported options.

*This post is authored by Cateatpeanut of the Windranger Labs team. All opinions are my own.

Thanks to previous author (Byron) of a similar proposal here.*

7 Likes

Means I need to hold at least 200,000 Bit to do any proposal?

2 Likes

200 000 seams very fair comparing to 10m, this threshold should have been from the start so we could vote for many things from the beginning, maybe it was done on purpose so we could not do so, I hope everyone can support this idea so the threshold is lowered

3 Likes

yes or delegate your bit to someone to propose , or be delegated by someone 200k to propose from yourself

4 Likes

oh, thanks. Now I understood.

3 Likes

Totally agree, 10m make not sense for the community participation!
But why 200k, prob a fixed percentage to the circulating supply is better.

3 Likes

AGREE!!
10m is too outrageous!

2 Likes

I agree, a % of the circulating supply seems more realistic. The DAO won’t be real if it’s too easily controlled by the early investors or the project devs.

1 Like

Fixed percentage will have to be done via manual update on snapshot.

Unlike other projects, circulating supply will ramp up quite quickly for BitDAO based on the plan: Tokenomics - BitDAO

There is some distribution of delegated votes in the beginning. Seems like no single party can push through a vote by themselves, needs at least 3 large delegated voters.

If would help if some can build an identity function or eth-dns identifiers on some of the delegated voters so that it is more convenient for BIT token holders to see the leaderboard or find people to support with delegated votes (if they do not want to delegate to themselves).

BitDAO is still an early project and will take time for tokens to be distributed into more hands, the delegated voter leaderboard is likely to change a lot.

3 Likes

holding 200k $BIT for proposing is a good idea,but now is not a right time to make a such proposal because a large amount of $BIT in circulation are deposited in bybit for interest(voting threshold is 100m $BIT, now only 250m in circulation and 50m deposited in bybit). So it is imperative that Bybit produce a voting tool for $BIT.

2 Likes

Agree. A fixed amount is much better than a fixed percentage for an early DAO project, especially with increasing circulation in the next 12 months, which will constantly change the required amounts if under a fixed percentage. 200,000 BIT seems reasonable for the current BIT price (around $360,000 USD), roughly ten mid-size holders can satisfy this criterion.

My only concern is that this BIT-based threshold is subject to the volatility of the market, which can substantially increase or decrease the threshold in bull and bear markets, respectively. I think we all understand how volatile the crypto market can be, with potential 70-80% bears, and n times bulls.

This volatility-dependent threshold may lead to more proposals to handle in bears and less in bulls, which might not be the best situation for the community. We may want more proposals in bulls, where BitDAO and partner projects can rapidly adapt to and benefit from the market trend. Whereas, in bears, we may want more carefully thoughted and researched proposals.

I would recommend a USD-based or Bitcoin-based threshold, however, this is not common in DAO.

4 Likes

Thanks everyone for your input here. Given the support for putting this to vote we’ve moved the proposal to the “Proposed Changes to BitDAO Governance Parameters” category for a Snapshot vote here.

1 Like

Status update: BIP-3 proposal to lower the Proposal Threshold has passed with delegates voting 104.7M BIT in favor of reducing the Proposal Threshold to 200K delegated BIT.

An update will be posted here confirming the timeline for adjusting the voting parameters and updating the governance documentation.

1 Like

Status update: BIP-3 proposal has successfully passed and the Proposal Threshold parameters in Snapshot have been updated to 200K BIT. Thanks to all for pushing this along!

We’d like to remind all BIT token holders that In order to participate in proposals and vote you first need to delegate your voting power (can be to your own address) prior to these proposals being submitted on Snapshot. More details can be found here: How to Delegate - BitDAO

1 Like