Skip to content

Quorum

Balance is Critical

Setting quorum too high can make governance non-functional, while too low can enable minority attacks. Monitor and adjust based on actual participation patterns.

Overview

Quorum represents the minimum threshold of voting power that must participate in a governance proposal for the vote to be considered valid. This parameter ensures that decisions have sufficient community participation and aren't made by a small minority of token holders.

How It Works

During the voting period, the governance contract tracks the total voting power that has cast votes (both FOR and AGAINST). For a proposal to pass, the total participation must meet or exceed the quorum threshold, and the majority of votes must be in favor.

Types of Quorum

Absolute Quorum

  • Fixed percentage of total token supply
  • Most common implementation in OpenZeppelin Governor
  • Example: 10% of all tokens must participate

Relative Quorum

  • Percentage of circulating/active tokens
  • More dynamic but complex to implement
  • Example: 15% of tokens held by active addresses

Key Considerations

Security vs Efficiency

  • Higher Quorum: More secure decisions, harder to manipulate
  • Lower Quorum: Faster decision-making, risk of minority control

Token Distribution

  • Consider how tokens are distributed across holders
  • Account for inactive or lost tokens in calculations

Voter Apathy

  • Many token holders don't actively participate in governance
  • Quorum should be achievable with engaged community members
DAO Maturity Community Engagement Recommended Quorum Rationale
New DAO Unknown 3% - 5% Allow governance to function while building engagement
Growing DAO Moderate 5% - 10% Standard range for most DAOs
Mature DAO High 10% - 20% Higher security for established communities
High-Stakes DAO Variable 15% - 25% Maximum security for critical decisions

Example Configurations

// Conservative approach for new DAO
quorum = 4% of total supply

// Standard for established DAO
quorum = 10% of total supply

// High security for treasury decisions
quorum = 15% of total supply

Best Practices

  1. Start Low: Begin with achievable quorum levels to ensure governance functions
  2. Monitor Participation: Track voting participation over time
  3. Gradual Increases: Raise quorum as community engagement grows
  4. Failure Analysis: If proposals consistently fail due to quorum, consider adjustments
  5. Emergency Procedures: Have backup mechanisms for critical time-sensitive decisions

Common Challenges

Quorum Not Met

  • Proposals fail despite community support
  • Consider voter education and engagement strategies
  • May need to lower quorum temporarily

Whale Manipulation

  • Large holders can artificially inflate participation
  • Consider vote delegation to distribute power
  • Implement voting power caps if necessary
Last update: June 25, 2025
Created: June 25, 2025