Proposal Submission Costs

Proposal submission costs are economic barriers, such as a required deposit or a fee, that must be paid to submit a governance proposal. These costs are designed to discourage spam and ensure that proposers are committed to the quality and relevance of their ideas.

If a proposal is deemed high-quality or is passed by the community, the deposit might be returned; otherwise, it could be burned or diverted to the protocol treasury. This creates an economic disincentive for submitting low-effort or malicious proposals.

The cost must be set at a level that is significant enough to act as a deterrent but not so high that it prevents legitimate, smaller contributors from participating. This is a delicate balancing act that requires understanding the protocol's user base and the typical costs of proposal development.

By introducing a financial component to the submission process, protocols can improve the overall quality of governance discourse and focus community attention on the most meaningful proposals.