Abstract:

This proposal suggests increasing the quorum threshold from 2% of the circulating PSP supply to 6%.

Goals & Review

• Boost community participation in governance votes
• Ensure decisions represent more PSP holders
• Build trust in the ParaSwap DAO by requiring wider agreement.

Means

Update snapshot strategy

Implementation Overview:

ParaSwap’s governance rules, updated by PSP-IP-33 on March 20, 2024, set the quorum at 2% (30M) of the circulating PSP supply. This means a proposal needs votes from at least 2% of PSP holders to be valid. Quorum should scale with the DAO’s size, stakes, and security needs, ensuring decisions reflect a meaningful portion of the active community while remaining achievable.

Fundamentally, quorum ensures decisions have enough community support to be legitimate and representative. It protects against unrepresentative outcomes or malicious exploitation by requiring a minimum level of participation.

If participation is too small relative to circulating supply, decisions may lack broad support or be gamed by a minority. As PSP grows or its decisions become weightier, a higher bar may better reflect community intent.

With PSP’s circulating supply at around 1.5B, 2% is just 30M PSP. This low bar could let a small, coordinated group control outcomes as the DAO grows. Looking at the past 10+ votes, all have easily gathered over 90M in quorum. Thus we propose to increase the quorum to 6% (90M PSP). This helps safeguarding against minority dominance, especially for critical votes like treasury use or protocol changes as well as demands higher community participation.

Time of Implementation:

If the proposal passes, the changes shall be implemented to the snapshot strategy

Budget:

There is no cost associated with this implementation

Risk Assessment:

There is always a risk of not enough PSP voting on proposals. However initatives such as the delegate incentive program help mitigate this risk

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