I would like to propose that we transition from on-chain voting to SnapShot based voting when it comes to updating/adding/removing rewarded pools. The current process is too slow and limiting to be effective.
Current Issues with On-Chain Voting for PNG rewards
- High barrier to entry: requirement of 1M PNG to submit a proposal
- Cannot vote with PGL: voters need PNG in their wallets to vote, but many users are staked with PGL
- Long end-to-end process: It takes 11 total days (1 day waiting period + 3 days voting + 7 days execution delay) to get a new pair rewarded in Pangolin
- Technical limitation of adding 4 pairs: Since on-chain proposals can only submit a single transaction, there is a technical limitation due to maximum gas that can be spent in a single block. This allows only 4 pairs to be added at a time.
- Gas cost: voters need to pay a gas fee to vote
Proposed Improvement - move voting for new pairs and pool updates to SnapShot voting
- Reduced PNG minimum requirement to submit a snapshot. We will start at a 10k minimum.
- Users can vote with both PNG and PGL
- Reduced end-to-end duration, we can reduce the 1 day waiting period and 7 day execution delay so we can implement new pairs more quickly
- No technical limitations - we will not be bound by the 4 pair limitation that we saw with on-chain voting
- No gas cost: voting is free!
- Set up a new snapshot system that uses both PNG, LPs (PGL) and Staked PGL - Bmino is working on this already
- Set a 10k PNG minimum to submit a snapshot proposal, and a 1M PNG quorum threshold for a proposal to pass
- Submit an on-chain proposal to change the owner of the LiquidityPoolManagerV2 contract from the GovernorAlpha contract to the Pangolin Multisig. The multisig will be responsible for adding/removing/updating pools when snapshot proposals pass with quorum.
- Other governance functions (moving treasury funds, changing contract ownership, etc.) will still need to go through on-chain voting. This update is scoped specifically to adding/updating/removing rewarded pairs.
- We can adjust the 10k PNG minimum and 1M PNG quorum numbers as needed if we realize these thresholds are too low or too high
Moving to a more agile SnapShot voting system for PNG rewards will streamline the process of adjusting pool rewards to best reflect the needs of the community and ecosystem.