Reading 2 minutes Published Updated
Institutional clients of cryptocurrency custodian company Anchorage Digital can now voice their concerns about offers for their tokens held without paying hefty gas fees.
According to a May 16 announcement, Anchorage is integrating a standalone, gas-free Snapshot multi-governance client to allow its “token-holding community users” to vote on governance proposals for their tokens without incurring any gas fees.
Anchorage Digital is pleased to announce that can now participate in Snapshot voting clients using their Anchorage Digital address. Our WalletConnect integration enables:
+ Voting from within qualified custody with no movement of funds
+ Secure off-chain governance for… pic.twitter.com/VYZ5pIwyl1— Anchorage Digital (@Anchorage) May 16, 2023
It states that all votes will be held in Anchorage custody with no movement of funds.
The snapshot is used by decentralized protocols such as AAVE (AAVE), Lido (LDO), and BitDAO. It records off-chain voting, which means that transactions are not publicly recorded on the blockchain.
The benefit of this approach is “convenience”, according to Anchorage:
“The trade-off for this convenience comes in the form of online guarantees; Instant Voting is free, as votes are counted offline and therefore do not require gas fees. Responsibility for enforcing the decision is usually the responsibility of the multi-signature, which is managed by the protocol team.”
Anchorage stated that it currently supports “more than 60 ERC-20 tokens” and plans to support all applicable future ERC-20 tokens.
Related: Anchorage Forms Depository Network With Five Cryptocurrency Exchanges
In October 2022, it was announced that Anchorage had expanded into Asia with five new institutional partners including Bitkub, DreamTrade and FBG Capital. It states that consumers in Asia have “enthusiastically embraced cryptocurrency.”
Recently, Snapshot has been used to collect votes from AAVE and LDO token holders on each of the latest protocol upgrade or governance proposals.
[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 proved useful for AAVE users who mistakenly sent their tokens to the wrong address.
In July 2022, LidoDAO, the governing body that oversees Lido Finance, a liquid proof-of-stake cryptocurrency staking solution, held an instant vote to send 1% LDO tokens to DragonFly Capital for $14.5 million, which was voted down by token holders.