Institutional customers of cryptocurrency custodial firm Anchorage Digital can now voice their concerns over their token proposals without having to pay hefty gas fees.
According to a statement published on May 16, Anchorage plans to integrate a gasless multi-governance client called Snapshot. This will allow Anchorage to provide “token-holding community users” with the ability to vote on governance proposals using their tokens without paying any gas fees.
It stated that all voting would be done under the supervision of Anchorage, and there would be no movement of funds. Several decentralized protocols use snapshots, including AAVE $63.51, Lido (LDO), and BitDAO. It records voting off-chain, meaning transactions are not publicly recorded on the blockchain. Off-chain recording means that this information is kept private.
According to Anchorage, the advantage of using this strategy is “convenience”. “Such sacrifices for convenience come in the form of on-chain guarantees; Snapshot voting is free as votes are counted off-chain and, as a result, require no gas payments. The protocol team typically operates multisig, which is entrusted with enforcing decisions once they are made.
Anchorage has announced that it currently supports “over 60 ERC-20 tokens,” and plans to enable support for all applicable future ERC-20 tokens. In October 2022, it was announced that Anchorage had expanded its operations to Asia with five new institutional partners. Among those partners are Bitkub, DreamTrade, and FBG Capital.
According to what was found, consumers in Asia “have enthusiastically adopted crypto.”
Snapshots were recently used to solicit votes from AAVE and LDO token holders regarding the latest upgrades or governance proposals for the respective protocols.
AAVE users who accidentally send their tokens to the wrong address can also make meaningful use of the voting system. In July 2022, the Snapshot vote was held by LidoDAO, the governance body that controls Lido Finance, the liquid staking solution for proof-of-stake cryptocurrencies. The vote asked token holders to decide whether to send 1% of the LDO token supply to DragonFly Capital in exchange for $14.5 million. Token holders ultimately decided against the proposal.