Ever since Pickle staking was introduced, and particularly since the treasury cap surplus approach was implemented, there has been discontentment among the community about voting rights (or lack thereof). The overall feeling seems to be that the more involved you are with the community, the more likely you are to stake your Pickle, and the more likely you are to want to actively participate in governance.
At the time of writing, 52.9% of Pickle supply was staked (0.4% of which are still in the old pool), 38.2% are in the Pickle Power LP pool, with the remaining 8.9% out in the wild. The ‘flippening’ (Staking > LP) happened ~2 weeks ago ago and the trajectory is continuing. With plans in place to eat into the Pickle Power emission allocation and potentially start emission distribution to stakers, it can be reasonably expected that the trend will accelerate to a point where Pickle Staking significantly outweighs LP.
There is broad consensus that Pickle Staking should provide governance voting rights. I haven’t seen any community members against this idea.
It’s clear however, through many weeks of discussions, that the engineering required to a) combine LP and Staking voting rights and b) implement any time restraints on staking, is significant if not near impossible.
It is also clear that the proportionate weight of voting rights depending on your position is unclear and would create complexity in an approach that is currently relatively simple.
AN ALTERNATE SOLUTION
If we agree that:
- Pickle Stakers are generally more involved in active community discussion (not saying LP holders aren’t, just as a broad cohort would be overall less so)
- The proportion of Pickle in the Staking contract is likely to increase from an already leading position
- The engineering/formulas of combining LP and Staking rights is overly complicated/difficult/impossible …
Then why not consider a switch of voting rights from 100% Pickle Power LP to 100% Pickle Staking.
IF Pickle retains the quadratic equation when calculating voting rightsthe removal of the LP token factor actually simplifies things. If I have 100 Pickle, I get 10 votes. If I have 10,000 Pickle, I get 100 votes, etc. Following Peachygate this may be a good opportunity to review the quadratic approach to voting rights too.
I propose that we leave aside the idea of locking, time constraints and other complications. Staking your Pickle generates Pickle C (or new token name for clarity?) which provides voting rights.
One further benefit would be the potential for defining appropriate quorum for voting - I realise that currently it is difficult to determine the number of LP tokens per account and therefore the total, but assume with Pickle itself staked on the Pickle Platform it would be feasible.
Liquidity Providers should have a say in the governance of the project. This may well be true - I am not across that many different projects but from the few I know, LP generally don’t participate in governance? The approaches seem to be more about “token within the ecosystem”, either staked, locked or delegated. Pickle Staking and the related “profit share” ticks this same box for me.
Risk of short term buys & dumps in order to manipulate voting. While this is in theory an issue, it’s no more so than providing LP (minus a couple of tx). And with the quadratic equation approach the impact of a single whale would be minimised - buying 10k Pickle would only give them 100 votes, unlikely to be sufficient for a majority. Sidenote: the concerns about sybil attacks remain but that is a separate issue.
Proposals that benefit Stakers would end up with skewed viewpoints. True, but no more so than is the case for LP related proposals, currently which actually tend to be the majority of PIPs relating to allocation of rewards.
LP providers pull their liquidity, dump the Pickle … well the first aspect is actually something we have been aiming for through emission reduction for LP. The second I guess is harder to predict - some you would hope will stay, some will stake and yes I am sure some will sell. After the UNI farming ending and TVL movement, maybe the timing is not great?
Rather than trying to combine LP and Staking voting rights, switch from LP governance to Staking governance in entirety.
If you have alternative ideas please feel free to put them forwards. This will hopefully be the last change in this respect (at least for a significant time) so it is worth getting right.
Speak now or forever hold your tongue
- Switch 100% voting rights to PICKLE stakers
- Maintain status quo of LP voting