XIP#46 Upgrading on-chain DAO


Core Team


This proposal is looking to make slight adjustments to the on-chain DAO voting support structure in anticipation of the launch of NFTX v3 and to futureproof the NFTX DAO. If passed, the support threshold moves from 80% to 66.6%. We’ll also start looking into upgrading the DAO from the current (old) Aragon protocol towards a more recent DAO infrastructure, to improve on-chain DAO participation UX for the NFTX community.


Since the start of 2020, the NFTX Dao has had an 80% support threshold, meaning that out of all the tokens that vote on a proposal, more than at least 80% of those tokens must be in favor of the proposal for it to pass. Now that we are a more mature project, with a solid token distribution, and a history of successful DAO decision-making, we are proposing that we lower this 80% threshold slightly to 66.6% (2/3rds).

When deciding on a support threshold for a DAO there is a tradeoff between (A) the risk of a contentious proposal getting passed without sufficient consideration, and (B) ending up in a stalemate or gridlocked state where no proposals can pass due to mixed opinions. For example, with an 80% threshold, it is possible for 20,000 NFTX to block 80,000 NFTX (however 80,001 NFTX would be able to win). This was a good setup early on because it reduced the chance of governance attacks and proposals passing without broad support. However, almost three years later, we are now in a good position to lower the threshold to 66.6% so that there is a lessened chance of ending up in a gridlocked state for a prolonged period of time. 66.6% (2/3rds) also has the benefit of being easy to think about—for a proposal to pass the votes in support must be at least twice the amount of votes against.

For safety and security reasons, we prefer to not update the DAO threshold (from 80% to 66.6%) on the current NFTX DAO (which uses the older version of Aragon) but rather make this change as part of an upgrade to a new DAO infrastructure (i.e. the new Aragon protocol, or Governor using Tally). Additionally, it would be good for us to adopt using a 66.6% threshold on Snapshot, to reduce the gap between required off-chain support (currently 50%) and on-chain support (currently 80%).



Lowering the voter support threshold to 66.6% enhances decision-making efficiency within the NFTX DAO, decreasing the likelihood of gridlock periods. This aligns with the project’s current maturity and will ensure smoother governance.


Adapting the threshold too quickly or without community support could lead to unforeseen challenges. It is essential to follow a gradual and community-driven approach.


Upon approval, a 66.6% voting support threshold will be applied to Snapshot. The current NFTX DAO, operating on the older Aragon, will retain an 80% threshold on-chain. Simultaneously, preparations for the migration to a new DAO infrastructure will begin, incorporating the 66.6% support threshold for on-chain voting.

Funding request - No - No Funding Required

This proposal does not require additional funding.

Proposed points of discussion

  1. The rationale behind updating the voting support threshold.

  2. The 66.6% threshold (versus keeping the current 80%, or adopting other numbers).

Quorum (For forum)

Minimum Quorum: At least 5 votes

Passing Threshold: More than 50% must vote in agreement for the proposal to Pass. For significant changes in DAO parameters, more than 70% must vote in agreement for the proposal to pass.

  • Yes, execute plan
  • No
0 voters