On behalf of the PRO Delegators’ validator, we have been very clear about this issue of questionable listings for quite some time. We are among the few, if not the only, validators consistently casting NO votes on certain proposals.
As we mentioned back in april, we will begin to decline proposals that do not meet our risk threshold.
Since that day, we have developed a basic four-criteria framework:
- Number and tier of their listed exchanges
- Depth of the accumulated liquidity vs. average 30-day trading volume
- 30-day price volatility (average and maximum standard deviation over that period)
- Sufficient trading history and price structure (volume profile should demonstrate true market participants, not pump & dump schemes)
While the fourth metric may require a more expert eye on the market, we believe every validator should be able to quickly assess the remaining three. We hope this will inspire them to adopt similar or even personalized frameworks like this one. We need quality contributors in the validator set, not people voting yes without paying specific attention to the proposals. On-chain delegated governance is a validator responsibility, and we should treat it with care.
Thanks for reading,
Govmos.
