iip: 9
title: Count unclaimed INDEX and INDEX LP tokens in Snapshot votes
status: Accepted
author: Noah Citron (@ncitron)
created: 2020-11-20
Simple Summary
Include unclaimed INDEX rewards and INDEX in LP pools in a user’s vote weight in snapshot governance. This allows both small holders who cannot often claim due to gas costs to have the voting power they deserve and large holders to increase the liquidity on INDEX pairs without reducing their governance power.
Abstract
Index Coop’s current Snapshot vote-counting strategy simply weights your votes based on how many INDEX tokens an address owns. Many users have unclaimed tokens from the UNI LP farming program and tokens locked in INDEX based LP pools. These votes are not eligible to vote on Snapshot governance. This proposal would allow unclaimed tokens and tokens in LP positions to be included in Snapshot votes.
Motivation
As of now, unclaimed rewards not being counted in the vote is a very minor problem, but as the emission rate of INDEX rewards slows, it becomes more apparent. For example, if in the future, farming programs may produce a more modest 10% APY. A user staking just $500 worth of DPI would make $50 in INDEX rewards each year. At the time of writing this, claiming your rewards costs ~$5. This would make it highly inefficient to claim more than once or twice per year, significantly diluting the voting power of this user between claims.
Many large holder may lock their INDEX in liquidity pools. This benefits the Index ecosystem by reducing slippage in INDEX trades. Unfortunately, these holders cannot participate in governance, even though they may be significantly invested in INDEX.
For:
- Include unclaimed INDEX rewards & INDEX LP tokens as voting rights in snapshot proposals
Against:
- Do not make any changes to the current snapshot voting rights
Specification
Overview
Snapshot allows organizations to select from a range of different “strategies” to count an address’s voting power. I have written up modifcations to the Index’s Snapshot space that would include uncalimed tokens and tokens locked in LP pools in the vote.
Rationale
Changing Snapshot is simple to do, and many prominant protocols have done this to acheive thier goals. Furthermore, this proposal requires no changes on-chain, making this a relatively low risk proposal.
Technical Specification
The modifications of the Snapshot Space can be viewed here: snapshot-spaces/index.json at master · ncitron/snapshot-spaces · GitHub.
Copyright
Copyright and related rights waived via CC0.
- FOR - Include unclaimed INDEX rewards & INDEX LP tokens as voting rights in snapshot proposals
- AGAINST - Do not make any changes to the current snapshot voting rights
0 voters