Thank you to the Arbitrum Foundation for raising this important and timely topic. As noted in recent ARDC reports, quorum risk has been flagged as a significant governance concern, and we appreciate the initiative to proactively address it.
However, while the proposal to reduce quorum thresholds seeks to improve operational efficiency, we believe it does so at the cost of increasing long-term governance risk. Reducing the quorum requirement may offer a short-term fix for participation challenges, but without addressing the underlying issues, it risks setting a precedent that could erode the integrity of DAO decision-making over time.
We would like to highlight that the current proposal lacks clear, data-driven justification for the chosen reduction targets, as well as a systematic framework for future adjustments. The assumption that quorum will need to be repeatedly lowered over time suggests a need for more robust structural responses rather than ongoing threshold erosion.
We would be inclined to support this proposal if it were presented as part of a broader strategy that included complementary initiatives to mitigate governance risk and increase sustainable participation. In our view, some of the most impactful mitigation strategies could include:
- Delegating Treasury-held ARB to trusted delegates, especially those participating in the Delegate Incentive Program. The program already includes a rigorous review of delegate performance, making it a natural mechanism to align capital and accountability.
- Activating Tally’s stARB governance staking. StableLab has recently proposed the first governance staking rewards for Rari DAO, using stRARI staking to direct delegation power in Rari Chain (an Arbitrum Orbit L3). The Obol Collective has already implemented it and is discussing metrics to determine active delegates. This system helps convert passive token holders into active governance participants by tying delegation to staking yield, using the same infrastructure the governace staking in Arbitrum would use. It would also help reconnect the correlation between total ARB supply and the share actively participating in votes.
Ultimately, we agree that quorum management is a critical issue. But reducing thresholds without simultaneously building participation infrastructure introduces long-term risks to the DAO’s legitimacy and resilience. We encourage the Foundation and other governance stakeholders to consider bundling quorum reductions with these or other strategic initiatives aimed at improving turnout and representation in the long run.