We would like to share an approach to simplifying Tezos’ on-chain governance mechanism, which we are considering for the upcoming protocol U proposal.
It incorporates feedback from bakers and other ecosystem contributors, as well as lessons learned from recent governance experiments in the broader Tezos ecosystem, including Etherlink.
The goal is to make Tezos governance faster, more nimble, and simpler to manage for bakers – without compromising on the safety guarantees and decentralized decision-making that Tezos is known for.
Given the importance of the governance mechanism, we encourage bakers and the wider community to carefully study the ideas, changes, and rationales and share your feedback with us.
What we are looking to address
Some recurring themes appear in the feedback we receive from bakers and in our own experiences with developing and communicating about protocol upgrade proposals.
Too many voting rounds: Bakers currently vote up to 3 times per governance cycle, creating voting fatigue, inconsistent participation, and a heavy communication burden.
Slow iteration: The current 70-day governance cycle introduces significant latency from upgrade development to activation (or rejection). The slow iteration makes protocol evolution less responsive and holds back development.
The changes at a glance
The changes we aim to include in the protocol U proposal would have the following impact on the governance mechanism:
- Shorter total duration. A full governance cycle is reduced from 70 days to 28 days.
- Shorter voting periods: Voting periods are reduced from 14 days to 7 days (the Adoption period remains 14 days).
- Simplified structure. Instead of 5 periods with 3 votes, a governance cycle has 3 periods with 2 votes.
- Persistent votes: Votes in favour of a proposal cast in the first voting round automatically carry into the second round unless explicitly changed.
- Opt-out for bakers: Bakers can opt out of being counted for the quorum.
Current governance model
| Period | Duration | Purpose | Details |
|---|---|---|---|
| Proposal | 14 days | Selection of a candidate proposal. | Bakers can upvote multiple proposals. The most upvoted proposal proceeds to the next phase if supported by at least 5% of total voting power. |
| Exploration | 14 days | First ratification vote. | Yea/Nay/Pass vote. Proceeding to the next phase requires 80% “Yea” supermajority with quorum reached. |
| Cooldown | 14 days | Testing and discussion. | No on-chain activity. |
| Promotion | 14 days | Second ratification vote. | Yea/Nay/Pass vote. Adoption requires an 80% “Yea” supermajority with quorum reached. |
| Adoption | 14 days | Gives the ecosystem time to adapt code and infrastructure before the new protocol activates. | No on-chain activity. The new protocol activates automatically at the end. |
Potential new governance model
| Period | Duration | Purpose | Details |
|---|---|---|---|
| Selection | 7 days | Selection of a candidate proposal. | Bakers can upvote multiple proposals. The most upvoted proposal proceeds to Promotion if supported by at least 20% of total voting power. |
| Promotion | 7 days | Ratification vote. | Yea/Nay/Pass vote. Adoption requires an 80% “Yea” supermajority with quorum reached. An upvote cast during Selection automatically carries over as a “Yea” for the proposal in Promotion unless explicitly changed. |
| Adoption | 14 days | Gives the ecosystem time to adapt code and infrastructure before the new protocol activates. | No on-chain activity. The new protocol activates automatically at the end. |
Faster iteration, less overhead, same legitimacy
The changes are meant to reduce operational overhead and communication friction for both bakers and protocol developers, while maintaining strong legitimacy for adopted proposals. They also enable faster and more flexible implementation of new features.
Shorter duration: The existing 70-day governance cycle slows iteration. A 28-day cadence enables more responsive and flexible protocol evolution while keeping sufficient safeguards and implementation buffers.
Shorter voting periods: Switching from 14-day to 7-day voting periods reduces the governance cycle length by a total of 14 days, while still providing ample time for bakers to cast their vote. Quorum requirements in the Promotion period continue to ensure that proposals are adopted only with a broad mandate.
Simplified structure: The Cooldown and Exploration periods are removed. Cooldown is a remnant of a previous automatic test chain period, which ultimately wasn’t practical. It doesn’t allow for adjustments to a proposal, and effectively adds 14 days of inactivity to the governance cycle. In practice, feedback loops and discussions for a proposal now happen before it is submitted, which also allows for adjustments. With Cooldown removed, the Exploration period would simply replicate the Promotion period without meaningful activity in between. Instead, a higher threshold during the Selection period (20% instead of 5%) ensures that only proposals with strong support proceed to the Promotion vote, where the 80% supermajority and quorum rules continue to apply.
Persistent votes: Voting fatigue is a common point of feedback from bakers. With persistent votes, an upvote cast during Selection automatically carries over as a “Yea” vote for the proposal in the Promotion period unless explicitly changed. It enables bakers to participate in governance with a single voting action per governance cycle.
Quorum opt-out for bakers: Today, quorum requirements mean that even bakers who do not wish to participate in governance need to repeatedly submit “Pass” votes for a proposal to proceed through governance. This change allows bakers to explicitly opt out of quorum to reduce operational overhead. A baker can opt in again at any time, and the quorum dynamically adjusts to reflect the active governance set.
Key considerations
Quorum after transition: Introducing these changes may require recalibrating the dynamic quorum, either through a one-time reset or a smoothing rule, so that the new system does not inherit irregularities from past participation patterns.
Sufficient information in advance: The simplified governance process without the Exploration and Cooldown periods puts more responsibility on protocol developers to provide information and offer feedback loops before a proposal is submitted. The more familiar bakers are with a proposal, the stronger its chances of advancing through the governance process.
Tooling adaptation: Tooling providers must make opt-out status and persistent votes clearly visible to avoid confusion and ensure that bakers remain fully aware of their governance status. Clear visibility of opt-out status improves information about who can be expected to be part of a vote/quorum and strengthens transparency of the new governance process.
Fewer voting rounds: Going from 3 to 2 voting rounds may, on the surface, seem like a reduction of safeguards. However, the stricter requirements in the Selection period ensure that proposals don’t proceed through the governance process without a strong mandate. The Promotion vote still requires an 80% supermajority with quorum met for a proposal to be adopted.
Shorter voting periods: Early announcements and clear communication timelines are required to ensure bakers have sufficient time to react. In turn, the total active governance window is concentrated into a focused two-week window that encourages active and vivid community discussion instead of attention being spread over two months. Proposals emerging without prior announcement risk not gaining the support needed to pass on-chain if bakers don’t feel properly informed.
Quorum limited to active participants: Bakers have different levels of engagement with governance. The opt-out mechanism respects that diversity while ensuring quorum reflects those who actively choose to participate, keeping quorum a meaningful signal of genuine mandate.
We want your feedback
This proposal is shared early to gather community input. We are particularly interested in feedback on:
- Voting period durations
- The Selection period quorum threshold
- Whether to keep the quorum EMA untouched or reinitialize it at protocol activation
- Operational impact on baker workflows
We welcome all thoughts, concerns, and suggestions, including on the broader approach. Please share them below.