Pending while snapshot team adds support for modifying the minimum percentage required for a choice to be considered the winning choice. This currently defaults to > 50% but our DAO has adopted supermajority rules and ideally a choice should only win if it has 66.7% or more of support.
This proposal is seeking to introduce using the ranked choice voting strategy for the duration and rewards rate of future liquidity mining (abbreviated as LM going forward) campaigns. Additionally, it is also seeking to default all new LM campaigns to a 30 day default duration. This proposal will provide vBNT voters with the option to choose from multiple durations and rewards rate for any future LM campaigns.
The Bancor DAO typically defaults to a 12 week duration for new/renewals of LM campaigns. The vast majority of our LM campaigns emit 10K-20K BNT per week for mid cap pools (exceptions are BTC/ETH/LINK and stable coin pools which started at the same rate as BTC/ETH/LINK but have now been reduced twice). Typically, when voting on such proposals we default to a “Single Choice” voting strategy with two options “For” and “Against”. Since it is possible to set the duration and rewards rate of an LM campaign when it is initialized, this proposal is seeking to change the voting strategy on new and renewal of LM proposals from “Single Choice” to “Ranked Choice” voting.
Additionally, this proposal is also seeking to default all new LM campaigns to a 30 day default duration going forward.
The expected workflow for new LM campaigns going forward should follow the flowchart:
- New LM campaigns going forward will default to a 30 day duration
- When voting to Initialize an LM campaign, the DAO will use RCV (ranked choice voting) to set the BNT weekly reward rates with the following choices:
- 10K BNT
- 7.5K BNT
- 5K BNT
- After 30 days, the DAO will use RCV to determine the duration of the LM campaign
- 12 weeks (current default)
- 8 weeks
- 4 weeks (chosen as a minimum to at least let folks that stick around for the full campaign to get 2x rewards)
Snapshot recently enabled ranked choice voting in their platform as part of the following commit. This will enable any spaces in snapshot to submit proposals with a ranked choice voting strategy. There is currently a “temp check” proposal in our own space with this strategy seeking to gauge the interest in Ethereum scaling solutions.
As an active community member, I have seen requests from our fellow Bancorians that would like to have multiple options when voting on LM proposals. I think that utilizing ranked choice voting on LM proposals (potentially others in the future) would allow us to give DAO members the ability to express their preferences that the current single choice voting system lacks.
A definition of ranked choice voting for those that are not familiar with this voting strategy:
A ranked-choice voting system (RCV) is an electoral system in which voters rank candidates by preference on their ballots. If a candidate wins a majority of first-preference votes, he or she is declared the winner. If no candidate wins a majority of first-preference votes, the candidate with the fewest first-preference votes is eliminated. First-preference votes cast for the failed candidate are eliminated, lifting the second-preference choices indicated on those ballots. A new tally is conducted to determine whether any candidate has won a majority of the adjusted votes. The process is repeated until a candidate wins an outright majority.
Benefits for implementing ranked choice voting include the following:
Promotes majority support - The voting continues until one choice has the majority of votes. The final winning option has the support of the majority of vBNT voters.
Provides more choice for voters - vBNT voters can select the choice that aligns best with their interests.
Minimizes strategic voting - vBNT voters can select the choice that they believe is best. Anecdotally, I have heard that some individuals will not vote on LM proposals not because they are against the proposal but rather due to not being able to select a choice that is not the default 12 week option.
New LM campaigns going forward will default to a 30 day duration
New LM campaigns will utilize ranked choice voting for determining the rewards rate with the following criteria (duration will default to 30 days going forward if approved by the DAO):
- 10K BNT/ Week
- 7.5K BNT/ Week
- 5K BNT/ Week
- LM renewals will utilize ranked choice voting with the following default periods (maintaining the existing rewards rate from when it was initialized unless changed adhoc):
- 12 weeks
- 8 weeks
- 4 weeks
We should continue to utilize a single choice voting strategy for LM campaign proposals.