Governance in 🌍Terra!🌎

Governance is really important in the web3, and where the decentralization is put at stake. Most of the proposals are from Projects looking for Grants but there are other kind of proposals to ask the community their opinion to made significant changes.

For Example Terra 2.0 is born after the terra community voted in favor to the Proposal #1623

Most of the discussion happens in agora.terra.money where the projects presents their proposal and discuss with the terra community.

The Importance of the Discussion

Esentially every project looking for a grant argues that receiving these funds is going to help the ecosystem, and here is where the key resides for a successful proposal.

The proposer needs to explain how they’re gonna spent the grant, and how they’re going to improve the Ecosystem and sometimes after a discussion in the forums an update for proposal is submitted.

MetricsDAO Proposal

In July 2022 a proposal from MetricsDAO was submitted asking for a grant to start a Terra Bounty Program, which in the end was successful and ended with this bounty being made!.

But Today we’ll focus in the last 5 proposals being voted by the terra community!

📊Last 5 Proposal 📊

📊Daily Metrics of Votes and Voters in the last 5 Proposals📊

Summary

After looking at 6 differents Proposals I identified the following voting trends:

• The day after a Proposal is submitted the amount of activity usually have a spike.
  • The chance of a spike increases with the amount of proposals starting in the same date, such as the case for December 13 Spike.
• If there isn’t any proposal active for a significant period of time, the activity on the first day may increase significantly such as Terra Poker in January 10.
• The favorite hours to vote are:
  • 07:00 to 09:00
  • 14:00 to 16:00
• The hours with less voting activity are:
  • 01:00 to 06:00
• There isn’t a correlation with the weekdays, and all the days have similar activity
• The last day of voting usually have the less activity
• Most of the Proposals are Grant Proposals where projects ask for funding.
  • Explaining in detail how the grant is going to help the community is really important, offering to allocate funds in the community pool in the future can help to raise more Yes Votes.

These are the Patterns & Trends in both Proposals and Voting Activity I found it.

Methodology

Images Source: TFM, Terra Poker, Terra 2.0, Proposal 3612 -

3795 Descriptions are screenshots from terrasco.pe

Using FlipsideCrypto Terra table.

• terra.core.fact_governance_votes: Here is all the necessary info to get all about the votes with
  • voter: To get the information about the voter
  • tx_id: To count the votes
  • vote_option_text: To know the option voted.
  • Proposal_id: To know the Proposal Being voted.

Made by Popex404, Twitter Link Here

MetricsDAO Proposal Analysis

Since the Beginning the amount of Yes voters was high, and surprisingly there were more voters abstaining than voting NO, and this is a good thing because these kind of votes helps to reach the necesary quorum.

• The amount of votes in the last day is high than other days.
• If we compare with the others proposals MetricsDAO Proposal ranks second by total voters.

📊Votes and Voters by Weekday and Hour📊

Voting Activity and Weekday-Hour Correlation

It’s seems that all the weekdays have similar voting activity, but one day raises against the rest easily and that is Tuesday, the reason behind this weekday being the favorite are two:

• This Weekday have 2 significant spikes of activity one in December 13 (The spike day for total votes/voters) and the other in January 10 the first day after the voting recession period because of holidays.
  • Is more a coincidence with this weekday having 2 biggest spikes, ==because December 20 and January 17 which are also Tuesday have few activity.

Hourly Activity seems to have uptrends and downtrends in activity votes

• Since 07:00 to 09:00 Voting activity have an uptrend but at the 10:00 the activity decreases again.
• From 10:00 to 13:00 Voting Activity have a small uptrend.
• Between 14:00 to 16:00 Voting Activity reached their biggest spikes
• From 19:00 Onwards the voting activity seems to go in a downtrend with the period between 01:00 to 06:00 the ones with less voters.

It’s seems that Every Weekday have the same amount of activity, the Spikes of Tuesday are correlated with some specific events and not because of the day.

But we can see that Voters are more active between the 07:00-09:00 and 14:00-16:00 timeframes.

Bonus - Comparing 2 different Proposals

🔎Daily Voters and Votes Analysis🔍

• In December 13 the amount of Voting activity reached a spike, it’s seems that TFM Grant Proposal received a lot of attention in their second day,
• During the Holidays Governance Activity Stopped and only resumed after January 10 with the Terra Poker Proposal.
• Usually during the first days is where the Proposal has most voting activity, but in the case for ERIS Protocol all the days presented a significant amount of Voting activity.
  • Except for the last day wich always have the less amount for votes for each proposal

Proposal #3612 TFM Grant Proposal

Proposal #3795 Terra Poker Grant Proposal (Updated)

TFM Grant Proposal

Their Proposal was a short version and the Full Proposal was in their Notion Site.

• Because of that they focused on showcasing the achievements without going in too much detail.
  • And adding a FAQ where they answers some questions about their team and Expenses.
• In their Full Proposal talks in detail about all the achievements and how they made Revenue.
• As we can see in the image above, TFM will allocate 15% of the Fees generated in Terra and Any Feather Chain to the Community Pool

Value of TFM in Terra

• TFM is an important DEX & NFT Aggregator, in the proposal they use Nansen Data to showcase their activity arguing that they’re the second most used protocol behind Astroport.
• They were working in the classic terra too and a lot of members of the community trust them
• In the future they’ll expand to other IBC Blockchains giving more reach to terra users using this Dapp.

Terra Poker Grant Proposal

Their Proposal was really long with a lot of text and images, without a summary or showcasing the key points of the proposal at the end.

• They showcase their achievements and the importance of the project in the proposal.
• But they omit some key points such as revenue making or the revenue from their tokens.
  • There is only a small piece of text explaining the fees generated.
• They aren’t going to repay the grant by allocating funds in the Community Pool After.

Value of Terra Poker in Terra

• Terra Poker is another popular project in Terra and uses Nansen Data to showcase their popularity in the proposal.
• There is a lot of Swap activity thanks to their tokens.
• It brings users interested in online poker to Terra.

Comparison between 2 Proposals - Analysis

The main Problem for Terra Poker was that they submitted 2 proposals, so they may lose some voting power by users voting in only one of them, although both proposals ended in rejected we can see already that Terra Poker Popularity against TFM is less.

• TFM in 3 days of voting reached more votes than Terra Poker in all 8 days of voting.
• TFM has 78 more Voters than Terra Poker.

What do you think of these proposals?

• TFM: I really like the idea to offer a short version in the forum and having a full version in their own blog website, it add values to show they’re active on other places, this DEX&NFT Aggregator holds a lot of value for the terra community because at the moment the activity of Token & NFT Traders is low in comparison with other chains, so having more diversity is the key to increase activity, and finally they’re going to give back to the community pool which is really important.
• Terra Poker: Their Proposal seems very aggresive and most of the text is showing the importance/popularity of their project without making key points, because of that it didn’t leave me with an impression and they evade showing important things such as the revenue made by their tokens, and only talk abouts fees revenue in like 1% of the total text, Also they aren’t going to give back to the community pool anything.

What would have made them stronger or likelier to gather more votes?

Both Projects are the most popular in Terra so I’ll skip mentioning that.

• TFM: Any DEX & DeFi Project is always well received by the Terra community, Specially if they have a good history behind by their achievement, Also explaining how they’re making revenue and paying back to the community pool helped a lot.
• Terra Poker: Not having simultaneously proposal being active, and trying to be more than a Poker Dapp, Having a plan to repay the community pool if theyr grant is approved.

Do you have any improvements to recommend?

• TFM: In their short version they could add more about the revenue and how they’re going to pay back, but aside from that I think this proposal was really well made.
• Terra Poker: They need to submit a short version of the proposal, showcasing the key points, the amount of text gives the impression to mislead more than lead the community into voting to favor, also they need be more transaparent about their Tokens, they didn’t talk about their tokens at all and didn’t explain how they make revenue, finally they need to pay back the community and they can simply use their TPT Tokens.
  • Most of the Community feared that giving them the grant was making their tokens value to increase at the cost of their $LUNA.

🗳Understanding the Votes 🗳

• Vote options for proposals - from Osmosis Lab 101:

  • Yes- You agree with and accept the terms of the proposal
  • No- You disagree with all of or part of the proposal but are open to a revised future proposal
  • No with Veto- You believe the proposal to be spam or will bring harm to the network and/or the proposer is a malicious actor. Generally implies you are not open to revisiting the proposal in the future.
  • Abstain- You don’t have enough information to make a decision and would rather let the rest of the network decide.

  Note: Not voting is not the same as abstaining. Not voting can lead to proposals failing to reach quorum.

Last 5 Proposals Review

In this table I considered only the final vote, there may be some extra votes in the voting proccess but in the end only the final vote of the voter is considered.

4 of the 5 proposals are asking for a grant, meanwhile the remaining is asking about a system upgrade phoenix is the name the new terra network received after their rebirth, so lets review each one!.

• TFM Grant Proposal:
  • TFM is a DEX and NFT Aggregator in Terra 2.0, Terra Classic, Juno and Osmosis.
  • They’re Asking for 1.6M $USD in $LUNA, and expenses are Salary (90%) - Infrastructure (10%).
  • TFM is already a popular aggregator for terra users, and in the future they’ll expand to other IBC Blockchains.
  • The Proposal was successful and has the better Percentage of Yes in comparison with the other Grants Proposals.
• Phoenix Software Upgrade 2.2.0
  • This proposal doesn’t have a post in the forums, but is because the relevant information about the upgrade is located in their github docs.
  • Basically they’re fixing some errors and updating other things.
  • This was the proposal with most Percentage of Yes Votes
• [Contro Protocol Grant Proposal](https://agora.terra.money/discussion/8460-contro-protocol-a-new-paradigm-for-trading-information for details.)
  • Contro Protocol is a DeFi protocol setting a new standard in prediction market innovation.
  • Although they don’t have an operating webapp at the moment in the proposal explained all the details about the team and how the project is going to work
  • This is the Proposal with most Percentage of Abstain, and the Successful Proposal with Less votes.
• Terra Poker Grant Proposal (Updated)
  • Terra Poker is a Play-to-Earn Dapp where users play poker to win earnings, is one of the most popular Dapps in Terra.
  • There was another Proposal submitted by Terra Poker, but after changing some things they released this Update Proposal the same day, and that’s the reason i’m only including this proposal.
  • The main problem for the Terra community was that Terra Poker already have enough funds thanks to their token TPT, and the proposal didn’t include rewarding to the community TPT so in the end the value of TPT is going to increase at the cost of the $LUNA Stakers if this proposal was approved.
  • In the end it was the only Rejected Proposal and has the less amount of voters considering this is one of the top Dapps in Terra.
• Eris Protocol Revised Grant Proposal
  • Eris Protocol is Liquid Staking and Slow Burn Arbitrage Protocol
  • They submitted a proposal in November 2022 which was rejected and then after reviewing again the published their new proposal recently.
  • One of the things they added was to share a 10% of Eris Revenue with the Community Pool
  • This Approved Proposal was the one with the most Votes

MetricsDAO Proposal 902 Metrics