[DAO:f6bd4df] Dynamic Voting Thresholds

by 0x0749d1abb5ca9128432b612644c0ea1e9c6cc9af (GovernorMarvin)

Linked Pre-Proposal

Dynamic Thresholds

Summary

This proposal suggests implementing dynamic voting thresholds in the Decentraland DAO, with DAO tools, the DAO can auto-adjust its thresholds as the Voting Power participation increases & decreases.

Abstract

This proposal suggests implementing dynamic voting thresholds in the Decentraland DAO governance process. Instead of relying on static participation and acceptance thresholds, this system would adapt to voter engagement, proposal type, and contextual variables. The aim is to enhance democratic participation, reduce proposal stagnation, and maintain fairness during fluctuating levels of community activity.

Motivation

Decentraland DAO uses static thresholds for participation and acceptance across different proposal types. While this ensures consistency, it also introduces challenges:

Valuable proposals often fail due to low voting power turnout, not due to opposition.

Voter apathy or seasonal dips can stall meaningful governance.

The system doesn’t scale well with fluctuations in community size or activity.

By introducing Dynamic Thresholds, the DAO could better reflect real-time voter sentiment and engagement, improving the efficiency and representativeness of its governance processes.

Specification

The dynamic system would work as follows (for discussion and refinement):

Participation Thresholds adapt based on recent DAO activity:

Calculated as a moving average of VP cast over the last (X) amount of proposals.

Ensures thresholds scale with actual voter participation trends.

Acceptance Thresholds are context-sensitive:

Critical governance (smart contract changes) maintains higher thresholds.

Less sensitive proposals (POI additions) adjust lower during periods of low engagement.

Fail-Safes:

Minimum and maximum bounds that the community can choose and vote on to prevent abuse or drastic changes.

All dynamic calculations are transparent and auditable via DAO tools.

Pilot Phase:

Initial implementation applies only to POI and Name Ban proposals.

Feedback gathered for broader roll-out.

Possible Implementation Ideas
Time-Based Adjustments → If the last (X) amount of proposals have failed due to participation issues, lower the threshold slightly.

Proposal Impact Scaling → More significant proposals require higher participation, while routine ones have flexible thresholds.

Voting Power Trends → If overall VP concentration shifts significantly (whales controlling too much VP), thresholds could auto-adjust back to default thresholds to ensure fair governance.

Conclusion

Dynamic voting thresholds offer a more flexible, inclusive, and realistic governance model for Decentraland. While the transition will require care, this change could significantly improve the DAO’s ability to adapt and thrive in a decentralized, user-driven environment.

Benefits
Increased Proposal Throughput: Fewer good proposals will fail due to arbitrary VP thresholds.

Better Representation: Reflects real-time voter engagement, not just static figures.

Encourages Participation: Voters see more impact, especially during quieter periods.

Scalable Governance: Adapts naturally as Decentraland’s population grows or contracts.

Drawbacks
Complexity: May confuse newer voters who are used to fixed thresholds.

Perceived Fairness: Risk of perceived manipulation if not implemented transparently.

Implementation Work: Requires dev work to build tracking and dynamic logic.

Transition Period: Governance might temporarily feel unstable during the pilot.

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

These specifications are not nearly specific enough for this draft proposal to be passed on to the next round.

There should be a formula for us to discuss and adjust before promoting to final Governance Stage. There simply isn’t anything of substance to be discussed or voted on as written.

There simply aren’t enough Name Ban votes, or POI votes generally, to attempt a pilot program solely utilizing them.

While the idea of “Dynamic Voting Thresholds” is easily suggested and generally agreeable, it requires a strong and well-thought-out foundation in order to be implemented effectively, and this does not provide that foundation or even enough substance to start debating it.

I like this idea as long as it keeps to the two catergories listed, POI and Name BANS. Considering the votes on some past POI requests, both to add and to remove, had difficulty getting passed, I vote YES. And @jar0d I say consider the positive side of the future of Decentraland, and the increase of requests that would come in. Manifest it. Its just a test for now if it passes and what does that hurt really? Not trying to sway you any but it’s why I am voting YES. Plus I just have to write the final proposal on the POI catergories, that should also be a reference for the determination. At least I’d think it would.

2 Likes

The POI VP requirement has been lowered to 500k, and there isn’t going to be any challenge reaching it going forward.

I agree, POIs and names only, it should not be dynamic for committees, grants (if re-enabled), or governance proposals, unless the current thresholds are used as minimum, in which case the dynamic thresholds would only be effective to increase the limits if a large amount of VP arrive at once.

2 Likes

Dynamic Voting Thresholds

This proposal is now in status: REJECTED.

Voting Results:

  • Yes 92% 945,469 VP (19 votes)
  • No 8% 86,427 VP (2 votes)
  • Abstain 0% 0 VP (0 votes)