eIP 19: Increasing the amount of votes necessary for the proposal threshold and quorum

Simple Summary

This proposal offers to increase efficiency of the Governance process by increasing proposal threshold and quorum to 10 k EUL.

Motivation

The motivation behind the proposal is to lower the risk of manipulation of the Euler governance via Snaphot.

As of now, the number of votes sufficient for Quorum is 1k.

However, based on the data provided in the EulerFinance Documentation (https://docs.euler.finance/governance/eul), it is assumed that the current number of EUL tokens in circulation is approximately 8 millions. That means that Quorum equals just 0,0125% of the current circulation.

At the same time, it is clear that not all the token holders take part in the voting on a regular basis. Analysis of the data available for the previous voting ( Snapshot ) shows that the average number of votes participated in the polls amounts to 35,5k and the average number of voters is 434.

It was registered during the voting, that some wallets possess (or act as a delegate) an amount of EUL that is several times greater than the Quorum. For example, 0xf69EA6646cf682262E84cd7c67133eac59cef07b = 3k EUL 0xeD95cbd2185924807e3B893B7E7Ac5dFE2efe33F = 5k EUL 0xf69EA6646cf682262E84cd7c67133eac59cef07b = 5,4 k EUL 0xD178F2d93B92Ac47cf51a899463Eca8acC37A8D5 = 20 k EUL etc. It means that a small group of people or even one person could pass a quorum and accept/reject a proposal in their own interest disregarding the possible outcome and consequences of a decision for the Protocol in general. Based on the assumptions mentioned above, I suggest:

Increasing the number of votes necessary to proposal threshold on the Snaphot to 10 k (0,125% of the current circulation).

Increasing the number of votes necessary to reach Quorum for the Snaphot voting to 10 k, (0,125% of the current circulation).

Benefits

Increase legitimacy of votes Prevent low cost governance attacks.

Downside

Makes it “harder” for a proposal to be put to a vote and passed.

Voting

“Yes” -

Increasing the number of votes necessary to proposal threshold on the Snaphot to 10 k (0,125% of the current circulation).

Increasing the number of votes necessary to reach Quorum for the Snaphot voting to 10 k, (0,125% of the current circulation).

“No” - Do nothing