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Anchorage Digital Integrates Snapshot for Gasless Governance Voting

Key Takeaways
  • Anchorage Digital, a crypto custody firm adopts Snapshot for off-chain voting
  • Institutional clients can participate in governance proposals without gas fees
  • Snapshot enables convenient voting within Anchorage's custody with multi-signature enforcement
17-May-2023 By: Simran Mishra
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Anchorage Digital Partners with AAVE, Lido, and BitDAO to Adopt Gasless Voting Platform Snapshot for Governance Proposals

Anchorage Digital, a prominent crypto custody firm, has made an important move by joining forces with AAVE, Lido, and BitDAO in adopting Snapshot, an off-chain voting platform. This integration allows institutional clients of Anchorage to actively participate in governance proposals related to the tokens they hold, without incurring the hefty gas fees typically associated with on-chain transactions.

The integration of Snapshot into Anchorage's platform enables its "token-holding community users" to conveniently vote on governance proposals using their tokens, all within the Anchorage custody framework. The innovative aspect of Snapshot lies in its off-chain nature, meaning that voting transactions are not publicly recorded on the blockchain. Instead, they are captured and stored within Anchorage's secure infrastructure.

One of the primary advantages of this approach is the elimination of gas fees for users. By conducting voting off-chain, there is no need for participants to pay gas fees typically associated with on-chain transactions. Instead, Snapshot leverages the convenience of off-chain voting while ensuring the decisions are enforced through the use of a multi-signature (multi-sig) mechanism operated by the protocol team.

Anchorage Digital Expands Support for ERC-20 Tokens and Integrates Snapshot for Efficient Governance Voting

Anchorage, known for its robust support of ERC-20 tokens, currently offers its services for over 60 ERC-20 tokens. Furthermore, the company has expressed its intention to enable support for all applicable future ERC-20 tokens, ensuring a broad scope of coverage for its institutional clients.

This move by Anchorage comes as part of its ongoing expansion efforts, particularly in the Asian market. In October 2022, Anchorage announced its extension into Asia, partnering with five institutional entities, including Bitkub, DreamTrade, and FBG Capital. Acknowledging the region's enthusiastic embrace of cryptocurrencies, Anchorage aims to provide its advanced custody services to cater to the growing demand.

Snapshot, the off-chain voting platform, has already proven its effectiveness in facilitating governance processes for AAVE and Lido. Users of these protocols have been able to express their preferences and vote on critical upgrade proposals using Snapshot. The voting system has also played a crucial role in resolving issues, such as users mistakenly sending tokens to the wrong address.

By integrating Snapshot, Anchorage Digital aims to provide its institutional clients with a gasless and efficient means of participating in governance decisions, amplifying their voices while minimizing the associated costs. This strategic move further solidifies Anchorage's commitment to offering comprehensive and user-centric solutions in the rapidly evolving crypto landscape. 

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