Thank you @lukedelphi and @Spaydh for clarifying the matter of ARC-57.
I do think it would be best to pass a signaling proposal on Neutron about ARC-57 before any further deals are made. Artroport passed ARC-57 more than three months ago, but Neutron still hasn’t ratified it. I think it would be reasonable and proper to have Neutron confirm social consensus around ARC-57 first, as the outcome of that Neutron vote would affect this current proposal, namely ARC-85.
And turning to this proposal, the proposed 5% of ASTRO supply for the Neutron DAO strikes me as rather high, considering the context.
That works out to 55M ASTRO, which the Neutron DAO would stake. There’s currently about 150M ASTRO staked, so Neutron’s stake would represent 25% of Astroport’s vote power.
That’s already a huge amount of vote power, but consider that most ASTRO holders don’t participate in governance. Given the extremely low turnout, Neutron’s share of the active vote power would be closer to 50%, I’d say.
But there’s more! Given that vxASTRO hasn’t been finished, we don’t know the full details. But based on what I recall from vxASTRO V1, users could lock their ASTRO to boost voting power. Assuming that will still be the case, if Neutron DAO decides to max-lock its 55M ASTRO - which it probably will - then it might end up with greater than 50% of Astroport’s entire vote power.
To be clear, I’m totally in favor of Astroport’s deepening relationship with Neutron. In fact, in a comment almost a year ago I expressed support for moving Astroport Hub from Terra to Neutron - and that was six months before Neutron launched! I’m still very much in favor of the idea.
But giving 55M ASTRO to Neutron might be a bit too much, considering how much that is as a percentage of the circulating supply. As I’ve explained, that much ASTRO might give Neutron complete control of Astroport.