Custody clients of Anchorage Digital, a crypto custody firm, can now provide feedback on token proposals without incurring expensive gas fees through its recently adopted off-chain voting platform Snapshot.
According to a statement released on May 16, Anchorage will incorporate the off-chain, gasless multi-governance client Snapshot to enable its “token-holding community users” to vote on governance proposals without incurring gas fees.
It was stated that all voting would take place within the custody of Anchorage, with no movement of funds.
Snapshot is utilized by protocols such as AAVE, Lido (LDO), and BitDAO. Voting is documented off-chain, meaning transactions are not recorded publicly on the blockchain.
According to Anchorage, the benefit of this method is “convenience.”
“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.”
Anchorage stated that it presently supports “over 60 ERC-20 tokens,” with plans to enable support for all applicable future ERC-20 tokens.
In October, Anchorage announced that it had expanded its operations to Asia with five new institutional partners, including Bitkub, DreamTrade, and FBG Capital.
The announcement stated that Asia’s consumers “have enthusiastically adopted cryptocurrency.”
Snapshot was recently used to gather votes from AAVE and LDO token holders on the protocol’s most recent upgrade and governance proposals.
The voting system was also advantageous for AAVE users who sent their tokens to the incorrect address.
In July 2022, Lido Finance, a liquid staking solution for proof-of-stake cryptocurrencies, was governed by LidoDAO, which conducted a Snapshot vote on transferring 1% of LDO’s token supply to DragonFly Capital for $14.5 million, which token holders rejected.
