This BIP proposes to make three changes to Bancor governance by i) requiring BIP documentation to meet a satisfactory standard of presentation and time for community engagement before commencing a vote, ii) increasing the majority rule from >50% to 66.7% and iii) increasing quorum requirements for whitelist BIPs from 20% to 40%.
i) BIP Documentation Requirements
Bancor Improvement Proposals (BIPs) must be presented in a manner suitable for review by the Bancor Community.
Suitable presentation includes but is not necessarily limited to: a well argued, concise, and coherent case for the BIP, appropriate references, and figures and diagrams where complex financial concepts or protocol features are central to the BIP. Additional guidelines apply specifically to whitelist BIPs and must be stringently adhered to. These include links to the project Github page and community discussion channels, contact information for the project spokesperson, all relevant security audits by trusted sources, a detailed discussion or explanation of the token utility or the project value proposition, up-to-date market and trading data including total market capitalization, trading volumes, and existing availability on other exchanges. Importantly, a single BIP may propose multiple changes if and only if the entirety of the BIP is thematically consistent, and the proposed improvements are addressing the same issue. BIPs containing multiple proposals for abjectly different purposes are invalidated, regardless of the voting outcome. However, stand-alone BIPs invalidated for containing two or more divergent improvement proposals may be reorganized into separate BIPs and resubmitted.
BIP documentation must be available with sufficient time for consideration by a reasonable and intelligent person. Time sufficiency is commensurate with the complexity of proposal. Minor adjustments to the protocol parameters, required for maintaining the health of the system, are prioritized over time for community deliberation. Similarly, urgent matters requiring immediate action can expedite the sufficient time requirement. Any other proposal that is not of imminent importance to the continuity of the project is not exempted. Low-to-moderate levels of complexity must allow 2-3 days for community engagement before voting commences; moderate-to-high levels of complexity must allow 3-5 days for community engagement before voting commences.
Full documentation must be provided by the proposer, and displayed on gov.bancor.network. The proposal must have a descriptive title that accurately reflects the content and/or expected outcome. The proposer is expected to answer all reasonable questions and respond appropriately to comments while the BIP is being reviewed. Direct contact information for the proposer, such as a Discord or Telegram handle, is preferred.
ii) Two Thirds Majority Rule
All governance decisions made by the BancorDAO will be contingent on a minimum two-thirds majority, defined as 66.7%.
iii) Quorum Requirements for Whitelisted Assets.
The current governance structure requires a 20% quorum for a legitimate vote. This proposal seeks to increase the quorum requirement for adding assets to the Bancor protocol whitelist to 40%; quorum requirements for BIPs not seeking to whitelist an asset will remain at 20% .
The motivation for increasing the quorum requirement for whitelisting assets is to reflect the gravity of the decision. Whitelisting an asset exposes the Bancor protocol to potential exploits. A 40% quorum, combined with a two-thirds majority rule, minimizes the potential for an individual, or group of individuals, to create selfish opportunity at the expense of the Community. This BIP asserts that whitelisting is the most vulnerable target for hacking the governance system, and the security provided by increased quorum is a sound response to that threat.
The caveat to increasing the quorum is that it is inherently less likely that the requirement will be met, making any whitelisting BIP especially challenging, including those for tokens that deserve to be whitelisted. However, this will also shift the responsibility to the proposer to make a strong case, and campaign for it via the available channels. This could create a greater government awareness, and culture of informed decision making by Community members. This BIP asserts that the increased challenge associated with higher quorum requirements for whitelist BIPs is risk-averse, and culture-positive in the long term.
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