Because proposals in Conviction Voting are token weighted and are a part of “continuous proposals” or dynamic average consensus the Minimum Threshold is the minimum conviction needed to pass a proposal.
The threshold calculation is dependent on the amount of funds being asked for. The minimum threshold stops people from asking for a very small amount of funds many times and using very few tokens to get the votes to pass.
The Minimum threshold makes it so that any requests for funding under a certain % of the funding pool all take the same amount of conviction to pass.
For example
If the Minimum Threshold is set to 1
And there are 100,000 tokens actively voting on proposals in CV
Then the minimum number of tokens needed to vote on a proposal for it to pass would be: 100,000*.01 = 1000
So if there is $1 million in the funding pool and someone is asking for $1 in their proposal or $100, even though from the normal threshold calculation it might only take a very small amount of voting power it will still take a minimum of 1000 tokens to pass the proposal.
However, because of how CV works, this is a theoretical minimum that would take an infinite amount of time to reach… 1001 tokens would probably pass it eventually tho 😉
Where in the code is this handled?
The minimum threshold is applied in this function:
And the function above it is where the threshold is calculated.
Questions we need to consider in this thread.
What other factors should we consider when choosing the minimum threshold?