Summary
This proposal seeks to extend the CMC20 onchain governance process from 48 hours to 72 hours by increasing the review period, voting period and execution delay to 24 hours each. The objective is to strengthen governance security by providing the core team, governors and the wider community with additional time to identify and respond to malicious proposals before execution.
Problem Statement
Currently the onchain voting and execution process for CMC20 takes a total of 48 hours, 2 hour review period, 22 hour voting period and 24 hour execution delay. While this serves to quickly enact administrative changes in a dynamic environment, recent governance attacks have demonstrated that there is appetite to exploit DTFs and that this is a viable attack vector.
While Reserve benefits from an active governor community and oversight from the core team, extending the governance process provides an additional layer of protection against malicious proposals, particularly during periods of reduced community participation e.g weekends.
Rationale
This RFC proposes that the onchain voting and execution process for CMC20 is extended to 72 hours total, broken down into 24 hours each for the review, voting and execution delay periods.
A 72-hour governance process has already been adopted by several other Index DTFs and provides sufficient time for proposals to be reviewed across multiple time zones and over weekends.
Risks
The primary risk of this proposal is reduced governance agility, as rebalances and other administrative changes will take longer to progress from submission to execution.
While a longer process cannot fully prevent malicious proposals, it provides governors, delegates and the wider community with additional time to identify and respond to suspicious activity before execution.
Given the recent governance attack and the relatively low frequency of governance activity within CMC20, this trade-off is considered reasonable.
Conversely, maintaining the current governance parameters maintains governance agility but leaves CMC20 more exposed to well-timed governance attacks, particularly during periods of reduced community oversight.
Conclusion
Extending the governance process from 48 to 72 hours represents a modest reduction in governance agility in exchange for improved security. Given recent governance attacks and the low frequency of governance actions within CMC20, the proposed change is considered a prudent safeguard that better aligns CMC20 with governance standards adopted across the wider DTF ecosystem.
Poll
- Yay, proceed with governance flow changes
- Nay, make no change to the current governance flow
