Proposal Threshold - The minimum number of votes required for an account to create a proposal.
Quorum - The required minimum number of votes in support of a proposal for it to succeed.
Voting Period - The duration of voting on a proposal
Voting Delay - The amount of time to wait before voting on a proposal may begin.
Moonwell Apollo Governance distinguishes itself from Moonwell Artemis Governance in the fact that it utilizes a dynamic “Floating Quorum”. Recall that quorum represents the number of tokens that must vote for a proposal for it to pass, which is useful to enforce that a minimum set of voters have viewed a proposal before its execution.
In Moonwell Artemis governance, quorum is a static number that is adjustable via a governance proposal. However, more and more WELL tokens enter circulation every day as they are emitted from the safety module and core protocol. This means that a relatively high quorum today may be quite easy to reach in the future. Furthermore, while voters may adjust quorum, there is a risk that if quorum is set too high, it can never be achieved, and thus further governance proposals cannot pass.
Moonwell Apollo governance aims to fix this by providing a dynamic quorum. When a proposal closes, the quorum for future proposals is adjusted with a weighted average, such that quorum will increase or decrease. If quorum ever becomes too high, governance proposals will start failing and quorum will readjust to a more reasonable level. If there are far more voters than the quorum requirement, quorum will adjust upwards to account for the number of participants.
Specifically, floating quorum is defined with the following equation:
newQuorum = (0.8 * oldQuorum) + (0.2 * lastProposalVotes)
As an illustrated example, imagine that quorum is set at 100,000 MFAM. A proposal passes, and 200,000 MFAM of votes are cast on it. Quorum will then adjust to be 120,000 MFAM for the next proposal, calculated as:
newQuorum = (0.8 * oldQuorum) + (0.2 * lastProposalVotes)newQuorum = (0.8 * 100,000) + (0.2 * 200,000)newQuorum = (80,000) + (40,000) = 120,000
To keep quorum inside of some bounds (to provide minimum and maximum thresholds), “Quorum Caps” have been implemented. These are absolute values that quorum may not float above or below. These caps are able to be modified via a governance proposal.
Initial values for Apollo Governance are set as follows:
- Initial Quorum: 20M MFAM (2% of Supply)
- Upper Quorum Cap: 900M MFAM (90% of Supply)
- Lower Quorum Cap: 10M MFAM (1% of Supply)