Proposal Success Thresholds
Proposal Success Thresholds define the specific criteria, such as a minimum percentage of total votes or a majority of quorum, that must be met for a governance proposal to be approved. These thresholds act as a final gatekeeper, ensuring that only proposals with sufficient community support can move forward.
If the threshold is too high, it can lead to gridlock where important updates are never passed. If it is too low, it can lead to the passage of controversial or harmful proposals.
The setting of these thresholds is a delicate balancing act that depends on the size and engagement level of the community. Analysts study these thresholds to understand the difficulty of changing the protocol and the potential for minority groups to block or pass proposals.
It is a key element of the protocol's governance risk profile.