Summary:
This proposal recommends reducing the quorum requirement for LOAN Protocol governance proposals from 25% to 20%. The change aims to maintain strong community participation while improving the ability to pass important proposals in a timely and effective manner.

Rationale:
The LOAN Protocol currently enforces one of the highest quorum thresholds in the DAO ecosystem at 25%. In comparison, other major DeFi protocols have significantly lower requirements:

• Uniswap: 4%

• Compound: 4%

• Aave: 1%

• Optimism: 10%

• MakerDAO: ~5%

While the high quorum was originally set to ensure strong consensus and protect protocol integrity, it has also made it more difficult to pass proposals, even when community support exists. Reducing the quorum to 20% strikes a better balance between security and agility, without compromising the democratic nature of governance.

This update would:

• Improve proposal throughput while retaining meaningful participation

• Align LOAN Protocol with industry standards

• Enable faster iteration and protocol-level improvements

• Reduce governance gridlock due to insufficient voter turnout

Specification:

• Update the governance quorum parameter from 0.25 (25%) to 0.20 (20%)

• No changes are proposed to voting duration, proposal threshold, or reward distribution

Voting Options:

• ✅ Yes - Lower the quorum requirement from 25% to 20%

• ❌ No - Keep the quorum at 25%

Implementation:
If the proposal passes, the quorum parameter will be updated by the LOAN Protocol development team or relevant community multisig to reflect the new threshold. No contract logic changes are necessary.