This proposal will adjust the deposit required for a proposal to enter the voting period to 6,000 OSMO, as well as proportionately increasing the deposit for Expedited proposals.
Details
The current deposit for a governance proposal is 1600 OSMO, worth approximately $400 in the current market.
It is good practice for governance to regularly reevaluate this parameter against the OSMO price to ensure it remains an effective spam deterrent while also being accessible for legitimate proposers.
The proposal deposit was last adjusted in Proposal 304 to an equivalent value of approximately $1650.
With a recent rise in spam proposals, such as Proposals 933, 935, 937, and 938, this deposit amount should be reevaluated to represent a more significant penalty for proposals that are vetoed.
1600 OSMO now has a valuation of around $400. This proposal would increase the deposit requirement to 6000 OSMO, or around $1500, to return the deposit cost to the same fiat cost as the previous parameter change.
Before entering the voting period, a proposal can be submitted to the chain and enter a Deposit Period for 25% of the full deposit requirement. This would therefore increase from 400 OSMO to 1500 OSMO.
This mechanism allows deposits to be contributed to by multiple community members using the command line or interfaces such as DAODAO, to ensure that the community is not priced out of governance participation.
Expedited Proposal are currently set at 5000 OSMO, as this proposal increases the basic deposit setting by around four times, this proposal raises the expedited proposal deposit to 20,000 OSMO.
Since the last change to deposit parameters, a new command is available in the Cosmos SDK to cancel a proposal. These parameters are currently empty; however, testing has shown that the proposal_cancel_ratio parameter must be populated for this proposal to pass successfully. This proposal initially sets this to 1, causing cancelled proposals to have their deposits burned.
Target Onchain Date: 29th May 2025
