A change to SiloDAO Voting Period

Introduction

The Silo protocol today is fully governed by SiloDAO through its token holders. This is different from many lending protocols where multi-signature wallets control all admin functions, causing significant security threats to users. Because the SiloDAO controls all admin functions, Silo stands immune to admin attacks.

However, this fundamental security measure comes at a cost. Making changes to the Silo protocol such as rolling out new silos, replacing price feeds, or adjusting collateral factors, to name a few, must take place through executive proposals where token holders first vote on Silo Improvement Proposals (SIPs) before changes take place.

At the moment, a governance proposal takes 10 days before it can be executed. The 10 days period consists of 8 days Voting Period and 2 days Timelock Delay. The Timelock Delay allows community members to exit in response to a passed unwanted proposal.

While 8 days Voting Period comes with many advantages such as allowing community members enough time to reach consensus over a direction, it can cause significant delays especially for a new protocol like Silo where fast execution is essential.

Proposal

I would like to propose that SiloDAO reduce the Voting Period from 8 days to 3 days.

Following the change, a proposal will take 5 days from creation to execution as follows:

  • 3-day Voting Period: $SILO delegates will have 3 days to cast their votes on a proposal.
  • 2-days Timelock Delay: There will be at least 2 days before the passed proposal can be executed.

Next steps

If there is some excitement, we can proceed to an executive proposal (on-chain proposal on Tally).

Let me know your thoughts.

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Fully support this.
8 days in crypto time is ~2 months in normal time.

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For community members actively participating in the community, 3 days seems like more than enough time to review and respond with a yes/no vote.

I think a pretty important aspect to this is that in the nescient stages of the protocol, governance should be quicker. As more pools and features are added in the protocol we will have more factors to consider and we may want to bump it up at that point - but we can issue a vote when that time comes.

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Absolutely, that sounds a good approach to it.

With the upcoming updates to Silo I think it makes perfect sense to bring down the amount of days it takes for a proposal to pass. This will help the Silo team in executing.

I think it is of utmost importance to bear in mind the possibility of governance attacks / hijacks though. I recommend that Silo set up automated snapshot and onchain voting monitoring to catch these possible malicious attacks.

Furthermore I propose to formally have a minimum of 1 days discussion period on this forum before any proposal can be brought further and considered valid. This would help to make sure that all proposals would have to be brought forth to the community and help alleviate the possible governance attacks.

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agree, now need the fastest promotion of silo to improve tvl

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Thank you for the feedback. We will instate a one day discussion period. We are monitoring the blockchain for any gov proposals.