[ARFC] Modify Snapshot Proposal Threshold

Governance
1

Title: [ARFC] Modify Snapshot Proposal Threshold

Author: @fig [Flipside Crypto]

Created: 2023-04-07

Summary:

This proposal presents updating Aave’s Snapshot space’s proposal threshold to 250 AAVE.

Abstract:

Aave has experienced instances of scammers and bad actors attempting to submit phishing proposals. These proposals have caused disruptions in Aave’s off-chain governance and have resulted in a waste of time and resources.

To prevent these incidents from happening again, we propose modifying the Snapshot proposal threshold to 250 AAVE.

Motivation:

We recommend that the community update the proposal threshold to a level that would deter scammers and bad actors. The new threshold would require proposals to meet certain minimum requirements, in this case holding or delegated 250 AAVE (or equivalent.)

This level is 3.3X the previous proposal threshold as of 04/07/23. By updating this threshold, we can ensure that only legitimate proposals are considered and that the risk of scams, illegitimate, or fraudulent proposals is significantly reduced.

Here is an example of recurring junk proposals:

Screen Shot 2023-04-19 at 1.45.17 PM

By modifying the proposal threshold required to post a Snapshot, there are many benefits for Aave’s off-chain Governance process.

A few notable ones include:

  1. Better quality proposals: By setting a higher threshold, we will receive proposals from more experienced and qualified professionals and delegates
  2. Reduced risk of fraud: Increasing the proposal threshold will help to reduce the risk of scams and fraudulent proposals.
  3. Improved efficiency: By setting a higher threshold, we will have fewer proposals to review, which will help us to be more efficient with our time and resources.

Specification:

To implement this proposal, an Aave Snapshot admin will need to update the space’s proposal threshold to 250 AAVE and communicate these new requirements.

A list of existing admins with this ability:

  • @monet-supply
  • @marczeller
  • 0xc8E0345596D7196941E61D3aB607E57Fe61F85E7
  • 0x2357df661D0E56140dF30c3ad0b2B426fB4666e6
  • 0x60C8dC4762b217b4A00FF1824111077f331B1FbF
  • 0x2D0D6A8553993a3E9eD1D86415358D1EDEfa82F1

Next Steps

Next steps to ensure a successful upgrade of Snapshot’s proposal threshold:

  1. Gather feedback and input from the Aave community on the proposed threshold
  2. Incorporate and refine the proposal based on feedback from the community
  3. Upgrade and communicate the new requirements to potential proposers

Conclusion:

Increasing the proposal threshold is a simple but effective way to prevent scammers and bad actors from submitting proposals.

By doing so, we can ensure that we receive better quality proposals, reduce the risk of fraud, and be more efficient with our time and resources.

Flipside will work with community stakeholders like @MatthewGraham (TokenLogic) @MarcZeller (ACI) @bgdlabs to create related proposals which revamp and updates the Snapshot space and permissions.

This is the first of a series to come.

Copyright

Copyright and related rights waived via CC0.

9 Likes
2

Totally in favour and suporting this ARFC.
Just a quick question, as i haven’t tried it by myself.
Can’t people just borrow Aave to create these ARFC?

If yes, how do we prevent them from doing so. Maybe borrowing costs are nothing compared to what they can scam from people.

4 Likes
3

We’re fully supporting this!

1 Like
4

It’s not borrowable from any of Aave markets. I get spam proposals suck but think that’s why DAO has Snapshot maintainers. Should be careful raising proposal thresholds. Delegates are not gatekeepers to the DAO.

Glad these Snapshot governance changes are going through the DAO.

1 Like
5

Thanks, @CrayolaCarnivore - we agree, the DAO should maintain to be free and open.

In fairness, the current level is 10,000 AAVE or AAVE equivalent. At today’s price, this equates to ~$730,000 to post a Snapshot vote.

The 250 AAVE level is a reduction and feels more fair and achievable but are open to hearing opinions around even lower levels.

To respond to your comment @EzR3aL you are able to borrow AAVE through platforms such as Paladin. The current supply is lower than 250 AAVE - incentivizing a bit of skin in the game.

3 Likes
6

? I thought it was 50 AAVE. 250 is a reasonable threshold. We support this proposal.

1 Like
7

Thank you for the proposal @fig

While I generally agree with setting this threshold based on the rationale you have outlined, I’d also like to urge the community to form a dynamic solution similar to Nouns’ next governance iteration: dynamic quorum — verbs

2 Likes
8

very interesting approach. A research study around it’s benefits and drawbacks would be very useful

3 Likes
9

I disagree with the idea that increasing the proposal threshold would lead to receiving quality proposals. Nothing guarantees that a wallet with access to open money markets can’t gather a million tokens and then run some fraudulent proposal in our space. We’re on protocol operating on a permission-less blockchain, which makes me think that, for example, an undetected smart contract hacker could not take advantage of our safety measures based on amount of capital/tokens (250 AAVE).

Could there be other methods of safeguarding access to Snapshot proposals that is not dependent on the quantity of held (or staked/locked) AAVE tokens? Like: history of contributions, previous DAO votes, number of delegation, age of wallet, math-based id verification, forum posts, multiple-steps before posting on Snapshot, Gitcoin Passport-verification, timelocking before accepting votes, …

I am open to hearing other ideas and propositions. I would just advise against setting a token-based requirement like this. In my mind, It is not an appropriate safety measure to contain the bad actors.

2 Likes
10

I completely disagree with this proposal. I think by doing that Aave DAO minimize the possibility for people with good idea but not much capital (as student, association or researcher) to submit good proposal.

For me there is to proof that junk post it negatively correlated with money but it’s can be easy prove that not all student, association, researcher have 15k$ free to summit proposal.

Note: delegation vote is it to help vote submission, yet not develop enough with easy 1 click module on Forum to ensure easy process for idea submission.

11

​​Hi @Nandy.eth - thanks for your feedback.

While 250 is an increase from previous levels, I will remind you that this new level is a reduction from the current level of 751 Aave (~$53,000.)

Before 750, it was even higher, at times floating at 10,000; it has moved too often recently.

The goal of this proposal is to stabilize and create a consistent - yet attainable - quorum as agreed upon by the community while preventing spam from permeating the Snapshot space.

As always, the community may readjust as needed from there.

12

@fig, last time I checked it was 50 Aave. Now 751 (according to Aave Snapshot proposal creation message)
As you I agree having this number fluctuate as often is not great and that stabilisation of this number is needed.

I just wanted to put forward that by enabling tool to decrease spam proposal it also have downside effect of decreasing protocol decentralization.

13

Following the snapshot vote outcome, the threshold has been decreased at 250 AAVE.

2 Likes