Anchorage Digital is providing its institutional clients with the opportunity to partake in transparency and governance with its “token-holding community users” without incurring heavy gas fees. Anchorage will use off-chain, gasless multi-governance client Snapshot to integrate clients’ voting for governance proposals with their tokens, without incurring any gas fees. The voting system will take place within Anchorage’s custody without any movement of funds. Currently, Anchorage supports “over 60 ERC-20 tokens” and has plans to enable support for all applicable future ERC-20 tokens. The use of Snapshot is advantageous as it is free, convenient, and does not require gas payments. Additionally, it records the voting off-chain without any public recording on the blockchain. Anchorage’s Snapshot is used by decentralized protocols such as AAVE, Lido (LDO), and BitDAO. The multisig that the protocol team operates is entrusted to enforce the decision as the votes are counted off-chain. Snapshot has recently been employed to collect votes from AAVE and LDO tokenholders regarding each of the protocol’s latest upgrade or governance proposals. The voting system also proved beneficial for AAVE users who mistakenly sent their tokens to the wrong address. The governance body of Lido Finance, LidoDAO, conducted a Snapshot vote on sending 1% of LDO’s token supply to DragonFly Capital for $14.5 million, which was rejected by tokenholders in July 2022. With its extension to Asia with five new institutional partners, such as Bitkub, DreamTrade, and FBG Capital, Anchorage aims to establish its position in the industry by enabling clients to participate in Snapshot voting using their Anchorage Digital address. The approach of Anchorage’s platform is likely to bring efficient and transparent governance to the industry.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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