Anchorage Digital joins AAVE, Lido, and BitDAO in using the off-chain voting platform Snapshot.
Institutional clients of Anchorage Digital, a crypto custody firm, can now share their opinions on proposals related to the tokens they hold without incurring expensive transaction fees.
According to a statement on May 16, Anchorage Digital will incorporate Snapshot, an off-chain and gasless multi-governance client, to enable its users who hold tokens to participate in voting on governance proposals without having to pay any transaction fees.
Anchorage Digital is pleased to announce that clients can now participate in Snapshot voting using their Anchorage Digital address. Our WalletConnect integration enables:
+ Voting from within qualified custody with no movement of funds
+ Secure off-chain governance for… pic.twitter.com/VYZ5pIwyl1— Anchorage Digital (@Anchorage) May 16, 2023
The voting process will occur entirely within Anchorage’s custody platform, ensuring that no funds or assets need to be transferred during the voting process.
Decentralized protocols such as AAVE and BitDAO, as well as Lido, utilize Snapshot for off-chain voting. With Snapshot, voting transactions are recorded off the blockchain, providing privacy and not publicly displaying the voting activity.
Anchorage believes that the main benefit of using this approach is the convenience it provides.
The reason why Snapshot voting is free is because it counts votes off-chain, which eliminates the need for gas payments. However, this approach also means that the assurance and enforcement of decisions are typically handled by a multisig controlled by the protocol team.
Anchorage has stated that it currently provides support for “over 60 ERC-20 tokens” and has plans to extend its support to include all relevant ERC-20 tokens in the future.
In October 2022, Anchorage expanded its presence in Asia by partnering with five institutional partners, namely Bitkub, DreamTrade, and FBG Capital, among others. The company noted that consumers in Asia have shown great enthusiasm for adopting cryptocurrencies.
Recently, Snapshot was used to gather votes from AAVE and LDO token holders regarding the latest upgrade or governance proposals of each protocol.
https://twitter.com/emjicy/status/1653392474818191362?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1653392476105854976%7Ctwgr%5E96fd6b5045aae108eab3e90a93f10882f59d37fa%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fanchorage-digital-uses-snapshot-governance-voting
The voting system also helped AAVE users who accidentally sent their tokens to the incorrect address.
In July 2022, LidoDAO, the organization responsible for governing Lido Finance, conducted a Snapshot vote on transferring 1% of LDO tokens to DragonFly Capital for $14.5 million. However, token holders voted against this proposal, resulting in its rejection.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
