[PROPOSAL] Increasing Governance Agility: Reducing the Veto Period to 10 Days

🔬 DAO Proposals
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TL;DR:

The Security Council is proposing to reduce the on-chain veto period for Taiko DAO proposals from 21 days to 10 days. The 7-day timelock will remain unchanged. This change cuts the total governance cycle from 28 to 17 days, a 40% reduction, enabling faster protocol evolution while maintaining our strong security model. An on-chain proposal for this change is planned for submission on Monday.

1. The Proposal: A Faster, More Responsive Governance Cycle

Taiko’s unique veto-based governance was designed to be efficient, allowing for decisive action while providing a powerful community check. However, the current 21-day veto period has become a bottleneck.

We propose a simple parameter update:

  • Change: Veto Period: 21 days → 10 days

  • Keep: Timelock: 7 days (unchanged)

  • Result: Total cycle: 28 days → 17 days

This change is about aligning our processes with the reality of how veto governance works and the pace of innovation in the blockchain space.

2. Core Rationale: Why a Shorter Veto Period Makes Sense for Taiko

The key is understanding the fundamental difference between governance models:

  • Approval-Based Voting (used by many DAOs): Proposals need active “yes” votes to pass and must reach a quorum. Longer periods help gather participation.

  • Veto-Based Voting (Taiko’s model): Proposals pass unless actively vetoed. There is no quorum to meet. The period is solely about providing a sufficient window for the community to object.

A 21-day window is designed for the first model, not the second. In a veto system, if a proposal is problematic, community discussion and opposition typically surface within hours or days, not weeks. A 10-day window provides ample time for scrutiny, especially when combined with our existing safeguards:

  1. Pre-Submission Review: All on-chain proposals are submitted by the Security Council after internal review and discussion.

  2. The 7-Day Timelock is the Critical Safety Net: This period after a proposal passes but before execution is the dedicated window for users who disagree with the action to exit. This timelock alone satisfies Stage 1 security requirements for exit mechanisms.

In essence: 10 days is enough time to object; 7 days is enough time to exit. Together, they provide robust protection without unnecessary delay.

3. The Benefits of a 17-Day Governance Cycle

  • Faster Protocol Upgrades: We can respond more quickly to community feedback, implement improvements, and adjust parameters. For example, beneficial changes like fee reductions or new feature integrations won’t be delayed by a month-long process.

  • Improved Competitiveness: The blockchain ecosystem moves quickly. A shorter cycle allows Taiko to adapt, partner, and ship at a pace that matches industry demands and user expectations.

  • Reduced Governance Fatigue: Extremely long voting periods can lead to disengagement. A more focused 10-day window encourages timely review and decision-making.

4. Addressing Security & Practical Concerns

  • “Won’t people miss the proposal?” Proposals are announced across multiple channels (Discord, Forum, Governance Dashboard). A 10-day period, spanning at least one weekend, is standard and sufficient for major protocols (e.g., Aave, Compound have 3-5 day review periods). Delegating voting power is also always an option for token holders.

  • “What about complex technical proposals?” Technical review is intensive and occurs before the proposal ever reaches the on-chain stage via the Security Council process. The on-chain veto period is a final community check, not the primary technical review phase.

  • “Are we compromising on security?” No. The security model is unchanged: community veto power + a 7-day execution timelock. We are simply right-sizing the first component to match its purpose.

5. Pathway to Implementation

  1. Community Discussion (Now): This forum post serves to socialize the proposal and gather community feedback.

  2. On-Chain Proposal (Target: Monday): A formal proposal will be submitted to the Taiko DAO for execution. Proposal will be found here when it is live.

  3. Governance Vote: The community will have the veto period (initially still 21 days) to decide on this change.

  4. Parameter Update: If passed, the governance parameter will be updated, and the new 10-day veto period will take effect for subsequent proposals.

6. Conclusion

This proposal is about unlocking Taiko’s ability to execute and evolve with greater agility. It respects the original intent of our veto-based governance, efficiency with oversight, by removing an artificial constraint. We believe this change will make Taiko more dynamic and responsive as we continue to grow.

The Security Council has reviewed and supports this proposal. We now open the floor for community questions and discussion below.