Governance Reaction to Terra
The period between May 8th - May 13th was a busy week for Osmosis governance. What was the community response like to these proposals? How quickly did these proposals hit quorum compared to the last two months of proposals? What was the voter turnout for these proposals vs the last two months of proposals? Creator: Whaen#8866; Data Retrieved Date: 2022-05-24
Before getting started, let's clarify the bounty question itself first. With current tables in osmosis.core
scheme, there is no staked balance field/table for us to query. Hence, we couldn't analyze how quickly each proposal had hit the 20% quorum. And Data Gal
mentioned that we can just look at the speed of the votes to each proposal for this Osmosis bounty.
Introduction (Brief)
Governance is a critical component in Osmosis as an enabler of the evolvement of this AMM protocol. Every upgrade/decision on Osmosis must go through the voting before the execution, just like other blockchains (eg. Terra Classic ðŸ˜). The image below shows an example of the proposal and some explanation on the UX component.
The amount of staked OSMO token in each proposal indicates the voting power of each voter. Based on the example above, we can see there's 7.30% of the total staked OSMO tokens that voters staked voted Yes
.
May 8th - May 13th was a busy week for Osmosis governance regarding the immediate action needed on the fallen of Terra. Let's analyze the voting response to these proposals and compare them with the last 2 months.
Approach
The vote transactions are query from osmosis.core.fact_msg_attributes
table with the filter of msg_type
equal to proposal_vote
. In this dashboard, we will focus on the osmosis proposal related to Terra only and analyze the voters' response to these proposals. Moreover, we will compare how fast the voting has gone through the whole voting phase and the voter turnout in the period 8/5
- 13/5
versus the last two months (2022-03-01
<-> 2022-05-07
). All the values shown in this dashboard indicate the vote transaction to each proposal, one vote per OSMO staker to each proposal, 1 vote = 1 unique wallet address.
Analysis
Terra Proposals between May 8th - May 13th
The title of each proposal is provided in the following below: > #222: Reallocate half of the Incentives on OSMO/UST (#560) to OSMO/USDC (#678) > > #223: Reallocate half of the Incentives on OSMO/LUNA (#561) to OSMO/ETH (#704) & approve the pool for Osmosis incentives > > #224: Reallocate half of the Incentives on LUNA/UST (#562) to OSMO/DAI (#674) & approve the pool for Osmosis incentives > > #225: Use Hardfork to Accelerate Proposals #222, #223, and #224 > > #226: Add functionality to allow depooling of UST pools via emergency upgrade hard fork in proposal #225
Observation
- For
#222
, there's 20727 vote count recorded and 20158 (97.2%) are voted withYes
. The rest of 2.8% areNo / No with Veto / Abstain
. - For
#223
, there's 19682 vote count recorded and 19074 (96.9%) are voted withYes
. The rest of 3.1% areNo / No with Veto / Abstain
. - For
#224
, there's 19697 vote count recorded and 19127 (97.1%) are voted withYes
. The rest of 2.9% areNo / No with Veto / Abstain
. - For
#225
, there's 15535 vote count recorded and 15151 (97.5%) are voted withYes
. The rest of 3.5% areNo / No with Veto / Abstain
. - For
#226
, there's 16669 vote count recorded and 16178 (97.0%) are voted withYes
. The rest of 3.0% areNo / No with Veto / Abstain
. - Nothing special here, the majority of the voters' responses were
Yes
to these "Removing incentives from Terra LP as quickly as possible" proposals. #222
got the highest vote response count, followed by#224
,#223
,#226
and lastly#225
.
#222
to #226
proposals are generally focused on removing the incentives from all Terra LP pools as quickly as possible during the fallen week of Terra.
The bar chart below shows the vote count by type of response on each Terra proposal between May 8th - May 13th.
Observation
- Every Terra-related Osmosis proposal voted within 31 hours (less than 2 days), even though the voting period is 5 days. No vote transactions were observed after 31 hours since these proposals go live.
- Hour 10th, hour 18th and hour 27th got the most vote transactions since these proposals go live.
- No obvious trend can be found.
- Proposals
#226
and#225
last vote transaction was observed at hour 22th. This proposal was voted within 22 hours. We can see how desperate these voters are to enable the functionality of UST pools depooling, and reallocate half of the Terra pools incentives as quickly as possible during the collapse of Terra (death spiral).
The bar chart below shows the vote transactions by hour since the proposal go live during the period of May 8th to May 13th.
Observation
- Only 1 Terra-related Osmosis proposal found at the last 2 months (2022-03-01 <-> 2022-05-07).
- For
#172
, there's 29683 vote count recorded and 28852 (97.2%) are voted withYes
. The rest of 2.8% areNo / No with Veto / Abstain
.
Observation
- For proposal
#172
, the highest vote transaction since proposal go live was found at hour 23th. - A lot of vote transactions were found during the first day of live-proposal.
- After the first day, the voting pace started to slow down.
- The last vote transaction was found at hour 72 (3 days). Default voting period for each proposal is 5 days.
- Additional Info:
#232
proposal was aimed to reduce 5 days voting period to 2 days voting period, however, it has been rejected due to the miss of quorum, community like to stick with 5 days voting period
The bar chart below shows the vote transactions by hour since the proposal go live during the period of Mar 1st to May 7th.
Comparison: Terra Proposals between May 8th - May 13th VS. Terra Proposals between Mar 1st - May 7th
In terms of the speed of voting on each proposal, undeniably, the speed of voting on these Terra proposals between May 8th - May 13th is much quicker than that of Terra proposals between Mar 1st - May 13th. By comparing the period of votes found from on-chain data since these proposals go live, there's a big difference between these proposals that live in these 2 periods, 31 hours VS. 72 hours with 1:2.32 ratio.
Whereas, by comparing the voter turnout on each proposal, the vote count on proposal #172
is much higher than those proposals live during May 8th until May 13th, #172: 29683 VS. #222: 20727 | #223: 19682 | #224: 19697 | #225: 15535 | #226: 16669. The 29683 voter turnout value on #172
proposal is 43.2% higher than the highest voter turnout value, 20727 on #222
proposal.
Conclusion
In summary, we managed to find out:
- The voters passed the Terra-related Osmosis proposal
#222, #223, #224, #225, #226
during May 8th - May 13th, and#172
during Mar 1st - May 7th. - By comparing the speed of voting on each proposal between these 2 periods, the proposals
#222, #223, #224, #225, #226
fall on May 8th - May 13th is much faster than#172
during Mar 1st - May 7th at the ratio of 1:2.32 (31 hours VS. 72 hours). - Moreover, in terms of voter turnout on each proposal, the voter turnout on
#172
(Mar 1st - May 7th) is found to be higher than that on#222, #223, #224, #225, #226
(May 8th - May 13th). The 29683 voter turnout value on#172
proposal is 43.2% higher than the highest voter turnout value, 20727 on#222
proposal.