CIP-183: Quorums & Voter Approval Category Governance Criticalness High - Relates to voting Impact High - All members of DAO will be affected Duration Until Modified Total Budget $1
The original City Council wrote in the Charter that 1 NFT = 1 vote. This was because we did not consider that some people could have dozens or even hundreds of votes. The original City Council also created two levels of quorum for voting:
Original Quorums: $1 to $10,000 250 NFT votes, 51% approval rating $10,001 to total treasury of $2.3 million 500 NFT votes, 51% approval rating Any vote that doesn’t require money 500 NFT votes, 51% approval rating
This has become a problem.
There is one CityDAO citizen who has over 200 NFTs, another citizen with over 100 NFTs and another with over 80 NFTs. Quite a few people have 20-40 NFTs. I, myself, have 21 NFTs.
This means that even though CityDAO has 6000 citizen, 4 people have 400 votes.
It only takes 500 votes to pass a CIP for over $2 million, bankrupting the DAO. Some may argue that this is unlikely. But it’s possible. Some may argue that the multisig would refuse to send the money. Maybe. But our current system allows a small number of people to get together and pass a CIP to bankrupt the DAO. Let’s fix this.
The new proposed system would still count 1 NFT as 1 vote for quorum with the following amendments:
- 1 vote = 1 quadratically-counted NFT
- An algorithm will be used to determine the quorum for different request amounts
- An algorithm will be used to determine the voter approval rating
Algorithms: Quorum Algorithm 50 + (1/2 * (square root of $ Ask)) Voter Approval Rating Algorithm 66 + 24 ($ ask / treasury)
Under the new system, the quorums and approval rating requirements would move up along with the amount of money requested. There may be more perfect solutions but this is definitely better than the dangerous loophole we currently have.
Amount Requested by CIP | Quorum Required* |
---|---|
$5,000 | 85 |
$10,000 | 100 |
$50,000 | 162 |
$100,000 | 208 |
$500,000 | 404 |
$1,000,000 | 550 |
$1,500,000 | 662 |
$2,000,000 | 757 |
*The quorum numbers represent the number of quadratic votes required. This means the square root of the number of NFTs held by a citizen. I have 21 NFTs. The square root is 4.58. So, rounded down, I would only get 4 votes. A citizen with 100 NFTs would only get 10 votes. A citizen with 81 NFTs would only get 9 votes. There’s no way a few people could pass a CIP for a million dollars. The treasury would be safer.
Amount Requested by CIP | Voter Approval % Required** |
---|---|
$5,000 | 66% |
$10,000 | 66% |
$50,000 | 67% |
$100,000 | 67% |
$500,000 | 71% |
$1,000,000 | 76% |
$1,500,000 | 82% |
$2,000,000 | 87% |
NOTE: To amend the Charter will require a quorum of 200 counted quadratically. Currently, it takes 1000 votes counted non-quadratically to amend the Operating Agreement (OA). This CIP does not intend to alter or amend the OA. This includes NOT changing how votes are counted for altering or amending the OA. They will be counted non-quadratically as 1 NFT = 1 vote.
Again, this is not a perfect solution, but it seeks to protect the treasury from very large requests.