Glossary · Q
Quorum
The minimum percentage of total voting power (or token supply) that must participate in a governance vote for it to be valid. Without quorum, even a unanimous 'yes' vote cannot pass a proposal. Quorum requirements prevent small groups from passing proposals when most holders are not paying attention. Typical DeFi quorum requirements are 1-10% of circulating supply, adjusted based on the sensitivity of the decision.
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How Quorum works in practice
Quorum is the minimum participation required for a vote to count. Set too high, nothing passes and the protocol ossifies; set too low, a small group can pass proposals unopposed. It is a live security parameter, not a formality.
Worked example
A protocol requires 4% of supply to participate. With 100m tokens outstanding, 4m must vote. If typical turnout is 5m, an actor holding 3m is close to deciding outcomes alone.
Figures are illustrative and chosen to be checkable, not live market data.
The mistake that costs people money
Low quorum plus low turnout is a governance attack surface. Someone can borrow or flash-borrow voting weight to pass a proposal — which is why timelocks matter as much as quorum does.
Quorum: common questions
- What is Quorum?
- The minimum percentage of total voting power (or token supply) that must participate in a governance vote for it to be valid. Without quorum, even a unanimous 'yes' vote cannot pass a proposal. Quorum requirements prevent small groups from passing proposals when most holders are not paying attention. Typical DeFi quorum requirements are 1-10% of circulating supply, adjusted based on the sensitivity of the decision.
- How does Quorum work in practice?
- Quorum is the minimum participation required for a vote to count. Set too high, nothing passes and the protocol ossifies; set too low, a small group can pass proposals unopposed. It is a live security parameter, not a formality.
- Can you give an example of Quorum?
- A protocol requires 4% of supply to participate. With 100m tokens outstanding, 4m must vote. If typical turnout is 5m, an actor holding 3m is close to deciding outcomes alone.
- What do people get wrong about Quorum?
- Low quorum plus low turnout is a governance attack surface. Someone can borrow or flash-borrow voting weight to pass a proposal — which is why timelocks matter as much as quorum does.