RP-7: Increase Renzo Governance Snapshot Quorum Threshold

Proposals
1

Summary

This proposal seeks to increase the quorum for Snapshot voting to better reflect Renzo’s current circulating supply, improve governance security, and align with quorum practices used by comparable protocols.

The existing quorum was set when Renzo first launched, a time when both circulating supply and community participation were significantly lower. This has resulted in a quorum that is now proportionally too low relative to Renzo’s scale today. This proposal introduces a revised quorum threshold to ensure decisions are made with a minimum level of meaningful voter participation.

Motivation

Current Quorum No Longer Reflects Today’s Supply

Renzo’s current Snapshot quorum is 20,000,000 votes, which represented:

  • ~1.74% of circulating supply at launch (Source - Renzo Blog)
  • ~0.44% of circulating supply today (Source - Coinmarketcap)

Since launch, the circulating supply has grown significantly to 4,531,928,455 REZ, a major expansion that fundamentally changes the ratio of the quorum to the floating supply. As a result, the governance quorum has effectively shrunk in influence over time, making it easier for low-participation votes to pass.

Snapshot Voter Participation Has Increased Greatly

Over the last set of major governance votes, Renzo Snapshot participation has consistently exceeded the bare quorum threshold, demonstrating a robust and engaged governance community capable of meeting a higher requirement.

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Voting activity within the last 10 months indicating an overly high quorum being met. Source - Renzo Protocol Snapshot.

1. A Lower quorum increases concentration risk

In the case where a single voter chooses to influence the decision of a community proposal, a low quorum threshold allows for such manipulation keeping the DAO at a risk of attacks.

2. Other DAOs maintain materially higher quorum percentages

Below is a cross-protocol comparison of other notable DAOs

Protocol Quorum % of Circulating Supply % of Total Supply
Aave 320,000 2.10% 2%
Lido 50,000,000 5.61% 5%
Uniswap 10,000,000 1.59% 1%
Euler 50,000 0.21% 0.18%
Renzo (current) 20,000,000 0.44% 0.203%

Tokenomics source - Coinmarketcap

Renzo’s current threshold (0.44% CS) is now one of the lowest among established protocols.

A quorum uplift to at least 2% of circulating supply and 1% of total supply keeps Renzo aligned with Uniswap and Aave on a relative basis while avoiding any rigidity.

Specification

The Foundation proposes updating the Renzo quorum to the parameters below:

Current Quorum % of Circulating Supply % of Total Supply
20,000,000 REZ 0.44% 0.203%
Proposed Quorum (New) % of Circulating Supply % of Total Supply
100,000,000 REZ 2.21% 1.014%

This level strikes a balance between security and participation turnout patterns.

Implementation

On the passing of this proposal:

  • The updated quorum will be effected immediately for Renzo Governance on Snapshot
  • All future Snapshot votes must meet the new quorum threshold for execution.
  • The change is purely off-chain and requires no smart contract upgrades.

Conclusion

Renzo’s circulating supply and governance participation have grown significantly since the initial quorum was set. The current 20M quorum (0.44% of circulating supply) no longer provides a sufficiently representative level of voter participation.

Raising quorum to 100M ensures Renzo governance is relatively proof to attacks, aligns with peers, and adapts to the protocol’s scale.

Important Links