III.II.II.III ZERO Threshold Proposals

ZERO Threshold Proposals allow major governance changes.

A ZERO Threshold Proposal is used for Reset, to toggle CASH between WETH and $M, and to set the POWER and ZERO Thresholds themselves. The Reset method is a special feature reserved for the ZERO token holders which allows a yes threshold of ZERO holders to change the current governor of the system to a new version with a new POWER token that is claimable pro rata to ZERO holders or to existing POWER holders.

They do this by creating a proposal to call the Reset method. Mechanically this is affected by replacing the current governor (POWER token address) of the system with a new instance, where the starting balance of the POWER tokens are proportional to each ZERO holder's balance in the epoch before the Reset. It is immediately executable upon achieving a yes threshold.

It is intended for ZERO holders to use this feature should they find something irreparably wrong with the composition and/or voting patterns of the current POWER holders and wish to take on voting responsibility themselves. It is anticipated that ZERO holders will only Reset the governor to the existing POWER holders if the token is nearing an overflow, which will not happen for 150+ years. There is technically no limit to how many times Reset can be called, but it is not anticipated to be frequently used if it is ever used in the first place. If a Reset is executed in the middle of a Voting Epoch, all active and/or unexecuted proposals are effectively canceled because they are using the obsolete governor.

Example

The ZERO Threshold is set to 60%. POWER holders seem likely to pass a proposal to add a perceived malicious actor to the Minter List. A user submits a proposal to Reset. This proposal is immediately votable – it achieves 70% of the total ZERO supply voting yes. This proposal is passed and is immediately executable. All currently votable proposals, including the proposal to add the perceived malicious Minter, are effectively canceled.