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Clients of the crypto custody firm Anchorage Digital can now express their opinions on proposals for the tokens they possess without incurring significant gas fees.
As stated in a May 16 announcement, Anchorage will incorporate off-chain, gasless multi-governance client Snapshot, enabling its “token-holding community users” to vote on governance proposals using their tokens without facing gas costs.
Anchorage Digital is excited to share that clients can now engage in Snapshot voting utilizing their Anchorage Digital address. Our WalletConnect integration allows:
+ Voting directly from within qualified custody without transferring funds
+ Secure off-chain governance for… pic.twitter.com/VYZ5pIwyl1— Anchorage Digital (@Anchorage) May 16, 2023
It noted that all voting will occur within Anchorage’s custody without any transfer of funds.
Snapshot is utilized by decentralized protocols such as AAVE (AAVE), Lido (LDO), and BitDAO. It captures votes off-chain, meaning that transactions are not recorded publicly on the blockchain.
The benefit of this method is “convenience,” as per Anchorage:
“The tradeoff for such convenience comes in the form of on-chain guarantees; Snapshot voting is free because votes are counted off-chain and thus do not require gas payments. The responsibility to enforce the decision is typically entrusted to a multisig that the protocol team operates.”
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Anchorage mentioned that it currently supports “over 60 ERC-20 tokens,” with intentions to extend support to all relevant future ERC-20 tokens.
Related: Anchorage establishes custody network with five crypto exchanges
In October, Anchorage announced its expansion into Asia, partnering with five new institutional entities, including Bitkub, DreamTrade, and FBG Capital. The announcement highlighted that consumers in Asia “have embraced crypto with enthusiasm.”
Recently, Snapshot has been used to gather votes from AAVE and LDO tokenholders regarding the latest upgrades or governance proposals for each protocol.
[Aave Snapshot] [ARFC] Aave V2 Interest Rate Curve Changes (2023-04-21) https://t.co/MQwcd5NVBt @indexcoop @SnapshotLabs pic.twitter.com/GrS1OkkHNs
— mel. (@emjicy) May 2, 2023
The voting system has also been advantageous for AAVE users who inadvertently sent their tokens to incorrect addresses.
In July 2022, LidoDAO, the governance entity overseeing Lido Finance, a liquid staking solution for proof-of-stake cryptocurrencies, conducted a Snapshot vote regarding the allocation of 1% of LDO’s token supply to DragonFly Capital for $14.5 million, which was declined by tokenholders.
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