Gasless Voting: A Game-Changer for Token Holders

In an exhilarating leap for institutional clients involved in the crypto sphere, Anchorage Digital has unveiled a new feature allowing clients to voice their opinions on token governance proposals without being hit with those pesky gas fees. This milestone, announced on May 16, marks a significant shift in how digital assets can be governed.

The Snapshot Integration: What You Need to Know

Anchorage is integrating off-chain governance with Snapshot, a protocol already in use by decentralized platforms like AAVE and Lido. This means that clients can cast votes from their Anchorage wallets without moving any funds and without incurring gas expenses!

Highlights of the Anchorage Snapshot Integration:

• Zero Gas Fees: Vote without the burden of gas fees weighing you down.
• Secure Custody: All voting takes place within the Anchorage custody framework.
• Expanded Support: Currently supports over 60 ERC-20 tokens, with further support on the horizon.

The Tradeoff: Convenience vs. On-Chain Guarantees

While this may sound like a dream come true, Anchorage warns that this convenience comes with its own tradeoffs. Snapshot voting, which operates off-chain, ensures that while voting is free and painless, the responsibility for enforcing the outcomes typically falls to a multisig managed by the protocol team. Anchorage states:

“The tradeoff for such convenience comes in the form of on-chain guarantees.”

A New Era for Voting Rights

This feature arrives at a pivotal moment, as Anchorage Digital recently expanded its operations to Asia, welcoming more institutional partners. As the crypto landscape continues to evolve, the ability for clients to participate in governance voting without barriers will likely foster greater engagement.

Success Stories of Off-Chain Voting

Snapshot has demonstrated its utility in previous governance decisions. For instance, both AAVE and Lido Financial have employed this mechanism to navigate crucial proposals. One notable instance occurred in July 2022, when LidoDAO considered sending 1% of LDO’s token supply to DragonFly Capital for a sum of $14.5 million. The trust in token holders was clear when the proposal was ultimately rejected.

As institutional clients gear up to utilize these features, the landscape of crypto governance is set to become more accessible and efficient than ever before.