Governance & DAOs
Quorum
Voting Quorum
Minimum voting participation required for proposal validity
Definition
Quorum is the minimum number of votes or percentage of total voting power required for a governance proposal to be considered valid and binding.
Example
If a DAO requires 10% quorum and has 100M tokens, at least 10M tokens must participate in voting for the proposal to pass.
What to check
Treat it as a governance concept: check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Low participation; Governance gridlock; Minority rule.
Risks to Consider
- Low participation
- Governance gridlock
- Minority rule
Common Questions
What does Quorum mean in DeFi?
Quorum means Minimum voting participation required for proposal validity. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.
How is Quorum used in practice?
A practical example: If a DAO requires 10% quorum and has 100M tokens, at least 10M tokens must participate in voting for the proposal to pass.
What should I check before relying on Quorum?
Check low participation, governance gridlock, minority rule. Also verify liquidity, oracle assumptions, admin controls, and whether the protocol has been tested during stressed markets.
