Proposal Type: Governance

TLDR

This proposal suggests creating a new wallet that would receive 500,000 SCR from the DAO treasury and would auto-abstain on all votes. The delegation, managed via a Foundation multisig, would run until October 2025. The goal is to ensure proposals can pass even if top delegates are unavailable.

The relevant discussion took place in this post.

Summary

Especially after the most recent voting cycle and seeing the fluctuations in the votable supply, there is a clear need to ensure that we are able to have proposals hit quorum.

This proposal is meant to provide a temporary solution for a voting supply related adjustment to make sure that governance votes don't fail purely due to not hitting quorum. Following the discussions over the last month, we are proposing to create a new wallet that wil receive 500,000 SCR from the DAO and will auto-abstain for each onchain proposal through the October voting cycle.

While the initial proposed centered around a votable supply adjustment and distribution of voting power from the DAO treasury, it is likely that proposal would not pass. As a result, we have adjusted this proposal to center around the auto-abstaining wallet idea.

Motivation

We need to raise the active votable supply.

• Votable supply = the proporation of the total supply that is currently able to vote (delegated)
• Active votable supply = the portion of the votable supply that votes a majority of the time and is active in at least one other way (calls or forum)

As the April voting cycle, the following data give a sense of the distribution of active voting power:

• Total voting power (vp) amongst those who have voted at least on 1/3 proposals (68 delegates): 2,676,700
• Total vp amongst those who have voted on at least 2/3 proposals (56 delegates): 2,419,471
• Total vp amongst those who have voted on 3/3 proposals (38 delegates): 2,165,731
• Quorum: 2,100,000
• The top two delegates have a voting power of 887,149 between the two of them.

We are in a position where if a few delegates, especially the top ones, end up having to miss a vote for any unforeseen circumstances, votes are likely to not hit quorum. This can act as an unnecessary bottleneck for the DAO and may result in increased apathy if not addressed.

With this in mind, we are proposing to create a wallet that will auto-abstain it's delegation of 500,000, effectively lowering the quorum to 1.6m SCR without lowering the threashold itself.

There are no clear conflicts of interest for this proposal as we see it.

Execution

Operational

The operational process will be as follows:

• If approved, the governance team will set up a new multisig that will receive the 500k SCR
• The gov team will use that wallet to auto-abstain by the end of each voting cycle

There are no new tools introduced here. We will provide all updates in this post.

Personnel & Resources

The Foundation governance team will set up the multisig and vote on a monthly basis. Eugene and Jamilya will own the project, with support from others as needed.

Anyone in the community will be welcome to provide feedback and hold the program accountable on the forum.

Financial

The overall budget for this proposal is 500,000 SCR to be used for delegation to a single multisig controlled by the Foundation. The funds would be sent back to the treasury by the end of October.

There is technically is no cost to run the program for the DAO, as no DAO funds will be needed to pay personnel or for tools. The Foundation will cover nominal costs that arise (e.g. setup of a new multisig, etc.).

Evaluation

The primary metric for this proposal will center around whether or not proposals are hitting quorum. Specifically, the percent of proposals that are clearing quorum while this wallet is being used. Additionally, we will track by how much quorum is being cleared (or the amount by which a proposal fails).

Conclusion

This proposal outlines a temporary delegation of 500k SCR to a new wallet managed by the Foundation that would auto-abstain on all votes.