Optimizing Lido On-chain Voting Timelines for Inclusive Governance

Proposals
22

Hello!

After conducting thorough research on what can be affected by the change of the voting timeline, Lido contributors identified the list of necessary changes.

Here is the summary of all affected protocol’s parts:

  • GateSeal: redeploy with new duration. The value is calculated as governance reaction time * 2 + 1. Therefore, the new value is 11 days;

  • Oracle Daemon Config: change FINALIZATION_MAX_NEGATIVE_REBASE_EPOCH_SHIFT. The value is calculated as epochs per day * governance reaction time * 2. Therefore, the new value is 2250;

  • Voting UI: it’s the main user interface that needs to be thoroughly tested with new voting parameters;

  • Documentation: adjust different sections to reflect new information;

  • Other minor changes: update on-chain and off-chain protocol infrastructure, services, landing pages, Forta alerts, Dune dashboards etc.

It’s important to note that, given Easy Track motions will still have a 72-hour duration, an Easy Track factory can potentially front-run ongoing DAO decision votes if not objected to by 0.5% of the total LDO supply (assuming the DAO vote started before the ET motion, with up to a 2-day precedence). This is accepted as is, without changes. Easy Track motions can only be initiated by trusted callers, and as a last mitigating option, there is an Emergency Brakes lever to pause Easy Track entirely.

This proposal to change voting duration to 72h+48h will be brought to the off-chain vote in December, and on-chain changes will be released during the following voting slots.

9 Likes
23

Since this is going up for vote soon curious what people’s current thoughts are.

1 Like
24

Thank you for a well-thought-out and constructive proposal!! We believe that the initial proposal is good, and together, we can make it even better.

Community Feedback On Vote Period Extension

Causally speaking, it is difficult to understand whether the existing 72 hour voting period, with a 48 hour main phase and 24 hour objection phase, is the primary factor of the previous 5/12 votes failing quorum. As such, the reasoning to uphold an increase in both main and objection phases should be found elsewhere.

A fundamental reason for Lido to increase the total voting period is the Guided Open Objective Setting Exercise #2 (GOOSE) objective to onboard institutional flows. We believe that institutional holders will desire more time to thoroughly contemplate DAO proposals. So far, objections against an increase to the total voting period have been predicated on the desire to make fast decisions with minimal complexity. This thought disregards institutional holders and consequently disregards GOOSE-2’s objective to onboard institutional flows.

While initially, in Lido DAO’s lifecycle, Lido DAO needed to execute all decision making, presently, this is no longer the case. Most decision making for Lido DAO has been pushed to the edge, thereby eliminating the need for fast action by the Lido votable supply. The caveat is that emergencies such as the one experienced on October 5th 2021, require speed to implement a temporary solution to a long term problem (Source).

Vote Period Design Constraints

The following considerations help us define the core design constraint. On one hand, Lido DAO’s decision-making is often at the margins, and institutional stakeholders may prefer extended voting periods. On the other, emergency scenarios demand rapid action. As a result, the voting window must be long enough to satisfy key stakeholders’ needs yet short enough to address urgent threats swiftly.

Final Thoughts

Acknowledging that the current 72 hour voting period is too short, but the proposed 192 hour period may be too long, we believe 72 hour main and 48 hour objection phases for a total voting period of 120 hours is a good compromise.

Finally, even though proposals starting Monday will be enacted over the weekend, we think having a larger majority of the voting period on business days relative to the proposed wednesday - monday schedule is advisable.

2 Likes
25

For me, there are 2 important points:

  • Quorum should be reached, and it’s disappointing that it doesn’t some times: Lido DAO Voting UI. There have been comments about extending voting periods can cause decisions to take too long… but it takes longer to not reach quorum and throw the vote away. Adding extra time to vote could help solve this.
  • Voting Schedule: I like the idea of having it split in 2 in the weekend as it accommodates for individual contributors that might need some time in the weekend to review and cast their votes due to other comittments during the week.

The fact that it’s not a lot of “office hours” for the objection phase should be monitored and potentially mitigated by big pushes to vote during the main phase - voting no, in the case of something that would have to be objected later.

3 Likes
26

Snapshot vote started

We’re starting the Extend On-Chain Voting Duration Snapshot, active till Mon, 23 Dec 2024 16:00:00 GMT . Please don’t forget to cast your vote!

27

I just voted yes on the proposal, great example of how delegates are already adding value in governance every week :slight_smile:

5 Likes
28

Thank you, @Hasu and others who have supported and voted for this proposal! We’re excited to see the positive impact this proposal can bring, and Tané is committed to driving further value within the Lido DAO.

2 Likes
29

Snapshot vote ended

Thank you all who participated in Extend On-Chain Voting Duration Snapshot, we reached a quorum! :pray:
The results are:
Extend duration to 3+2 days: 57.7M LDO
No action: 113 LDO

4 Likes
30

:rocket: Voting has started! :rocket:

Vote #184 is now live, and your participation matters! :dizzy:

The vote will remain open for your “For” or “Against” input until the end of the main phase: Mar 20, 14:15 UTC.

Please check this guide for instructions on how to verify the vote items.

Let’s keep Lido governance transparent and decentralized!

5 Likes
31

Vote #184 has concluded and was enacted!

294 participants cast their votes (either directly or via delegation).
Huge thanks to everyone who voted! :two_hearts:

Here are the results:
“Yes” — 50107878.2 (5.01%)
“No” — 36.3 (0.01%)

5 Likes
32

Hey-hey :waving_hand:
Since the changes to the on-chain voting timelines directly affect LIP-4 and LIP-16, references to these adjustments have been added to each.

4 Likes