[AIP-110][Discussion] Lower the Threshold for Passing a Governance Proposal from 400M APT to 300M APT

[thepomeranian]

AIP Discussion

Summary

This AIP proposes reducing the threshold for passing a governance proposal on the Aptos network from 400 million APT to 300 million APT. On-chain statistics indicate that Aptos Governance participation typically ranges between 400M and 430M APT per proposal. As the network continues to grow and APT tokens become further decentralized within the Aptos ecosystem, this change aims to ensure smooth governance operations, improve decision-making efficiency, and maintain network security and integrity.

Rationale

Several factors motivate this proposal to lower the proposal threshold:

1. Ensure Network Operations: The threshold must strike a balance—low enough to enable progress but high enough to maintain security and quality in upgrades. A threshold that is too high could hinder network evolution.
2. Community Inclusivity: A lower threshold empowers a broader range of stakeholders to participate in governance decisions, reducing reliance on the Aptos Foundation.
3. Address Past Challenges: There have been instances in the past where proposals narrowly missed the 400M APT threshold, requiring revotes to pass. This has resulted in wasted time and effort for the community and validators. Lowering the threshold will help avoid such inefficiencies and ensure smoother governance operations.
4. Data Support: On-chain data over the past year consistently shows participation of 400M to 430M APT in governance operations. Reducing the threshold to 300M APT provides a balanced approach, ensuring smooth governance operations while aligning with the shorter lockup cycle and voting period.

Detailed Explanation

On the Aptos network, governance proposals typically see 400M to 430M APT actively participating in voting. Setting the voting threshold at 400M APT requires almost 100% of active participants to vote on every proposal for it to pass. This high requirement has posed significant challenges for governance operations. By lowering the threshold to 300M APT, we would need approximately 70% of active participants to vote on each proposal for it to pass. This adjustment is far more achievable while still engaging a majority of participants to ensure the quality and integrity of governance decisions.

Read more details about Aptos Governance here. https://aptos.dev/en/network/blockchain/governance

Read more about it here: https://github.com/aptos-foundation/AIPs/blob/main/aips/aip-110.md