Osmosis Governance: 362 and Beyond

    Analyzing Prop 362

    Background

    Osmosis Governance Proposal #362 was for Osmosis Grants Program (OGP) Renewal. According to the proposal, “by voting YES, OSMO stakers signal their support for a 12 month renewal of the Osmosis Grants Program with Reverie continuing as Grants Lead. By voting NO, OSMO stakers voice their dissent for a 12 month renewal of the Osmosis Grants Program”. Essentially, stakers are to decide whether to renew the program or not. In this dashboard, we’ll look at vote-switching and the engagements surrounding the proposal.

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    Overall, about 22,300 unique Osmosis wallets voted on proposal 362. Out of the lot, 94.5% did not switch their stance on the vote while 5.45% did switch for several reasons. A breakdown of the vote switching is presented below. Since a user is only allowed to make a single decision, if they vote 2 or more times it means they switched.

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    Digging deeper into the average OSMO balance of Switchers vs. Non-switchers at the time of writing*,* we found out that the average of balance of users that did not switch was about 66.8m OSMO which was relatively less than 153.6m OSMO. These numbers are very huge signifying the presence of whales (users with large wallet balances) on both sides. PS: Average balance takes into consideration both staked and liquid OSMO.

    Now if we take a look at voting activity for validators only, peak voting activity occurred on November 16, 2022 with 66 validators (representing ~70%) voting only once. 19 validators voted twice, 5 validators changed their mind twice, and 4 validators voted 4 times. At the end, 39% voted YES, 29.3% voted NO, 7.32% NO WITH VETO, and 24.4% ABSTAIN.

    Voting activity for regular users peaked at November 15, 2022, just a day before that of validators also peaked. Which somewhat implies that validators were reacting to the stance of regular users. At the end, 84.1% of regular users voted for YES, 7.46% voted NO, 3.32% voted for NO WITH VETO, and 5.16 voted ABSTAIN.

    Overall, prop 362 passed with YES. Comparing 362 with other recent proposals like 360, 361, 363, 364, and 365, we can see that proposals get similar amounts of engagements. The number of transactions and the voter count all seem the fall between the range of 20k - 25k as shown in the chart below.

    Final Words

    Osmosis governance proposal 362 was a hot topic within the OSMO community but it was no outlier in terms of engagement compared to recent proposals. 362 was more popular with regular users as ~84% voted to pass compared to 39% validators who voted to pass. There was a lot of vote switching involving both whales and users with smaller balances but whales seem to switch more. In the end, the proposal passed, and the Osmosis Grants program will be renewed for another 12months.