Crypto glossary

Quorum and voting thresholds

Definition

In DAO governance, quorum is the minimum voting power that must take part for a proposal to count, and the threshold is the share of votes needed to pass it.

Governance contracts and voting platforms set two rules for every proposal. Quorum is the minimum number of tokens, or percentage of supply, that must vote, often counting only votes in favour. The approval threshold is the majority required, usually a simple majority, sometimes a supermajority for sensitive changes such as contract upgrades or treasury spending. Some DAOs also require a minimum token balance to submit a proposal at all.

These numbers decide how hard it is to change a protocol. Set quorum too high and nothing passes, because most holders never vote; set it too low and a small, organised group can push changes through. Delegation systems exist largely to help proposals reach quorum.

Voter apathy is chronic: in many DAOs a few percent of supply decides outcomes, and exchanges or funds holding large balances can swing results. Quorums based on total supply also become harder to meet as tokens unlock, so DAOs periodically vote to adjust them.

Example

A DAO requires 4% of its token supply to vote in favour for a proposal to be valid; a popular upgrade gets 92% approval but only 3.1% of supply, so it fails for lack of quorum.

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