What Is the Technical Difference between a ‘Snapshot’ and On-Chain Voting?
Snapshot voting is an off-chain process where a proposal is voted on using a digital signature, but the vote itself does not directly execute a transaction on the blockchain. The system takes a 'snapshot' of token balances at a specific block height to determine voting power.
On-chain voting, in contrast, requires token holders to submit and pay gas for a transaction on the blockchain to cast their vote, and the outcome directly triggers the smart contract execution. Snapshot is cheaper and faster, while on-chain is more secure and directly executable.
Glossar
Voting
Governance ⎊ Voting within cryptocurrency, options trading, and financial derivatives represents a mechanism for stakeholders to exert influence over protocol parameters, listing decisions, or the direction of decentralized autonomous organizations (DAOs).
Technical
Analysis ⎊ Within cryptocurrency derivatives and options trading, technical analysis transcends mere chart pattern recognition; it represents a structured, data-driven approach to forecasting price movements predicated on historical market data and volume.