Governance on anchor is dysfunctional

Hi All,

the protocol faces serious challenges

  • reimbursing victims of the oracle defect of December 9th
  • imbalance between borrowing and saving ==> rapidly decreasing reserve yield.

Still there are no proposals being formulated. Why is that? Simple: it costs 1000 ANC or +/- 2500 USD to create a proposal… that threshold is just too high which is limiting this protocol to have any functional self-steering dynamic in place. It would be good to allow for a tool to join up a pool to have the 1000 ANC crowed sourced to put up a proposal for vote. I do feel we are in that case creating a governance function within a governance function… loop loop

So, de facto, the developers are in charge. Would be good to hear their voice on these urgent matters.


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I think this is a good idea. I saw a proposal suggesting the deposit be lowered to 100 anc, but perhaps that is too low. I would support your pooling the deposit collateral idea.

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The last governance poll for this failed because there was not enough community unity behind this idea. It seems like most actually supported a higher amount and to have the amount required actually be benchmarked to UST fixed amount and not a set amount of ANC since the market always is changing. Ideally setting it at 500 UST might be the were get some unity to try this again, but I would be worried about trying it so soon after it fails

This had less to do with poll’s required amount of ANC and more to do with how defi governance actually works: these things take time because everyone has a voice and an idea. It took a long time to get everyone on the same page which we finally have been able to do. There will be a poll after the audit poll which is pretty far behind as well.

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It failed because we do not think Ozone funds which are meant to be Terra Wide good should be spent on a mistake made by the Anchor Protocol. I am for an ANC community spend that pays out. The loss of trust in Anchor the further we drag this on the more we lose. Lost trust is worth more than what we have to pay out.

Correct. This failed because it didn’t go through the proper forum discussions as governance required. It would never have made it to a poll if the idea had been posted and talked about the on forum.

The vesting contract for the ANC tokens to pay back users is being created and should be ready by early next week and then the poll can go live.

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