🗳 This Week in Governance - Dec 1
A weekly resource covering Web3 governance, politics, and power.
📣 Key Points
Compound Caps Borrowing on a Number of Assets
Gitcoin Holds Elections for its Stewards Council
MakerDAO Votes to Increase its DAI Rewards
Compound Looks to Revive its Community Grants Program
… and much more
Voting Activity (L7)
🗳️ 31,678 ballots (-12%)
👥 14,962 voters (+38%)
📜 168 proposals (+14%)
🌐 48 active DAOs (-)
Let’s get into it 🔥
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🗞 News in Brief
Compound Caps Borrowing on Ten Assets
On Monday, the Compound community unanimously approved a governance proposal that would alter the borrowing limits of ten assets within the lending protocol. Gauntlet, a key service provider, submitted the proposal with the intention of eliminating any potential high-risk attack vectors within these markets. Assets affected by the new cap include UNI, COMP, MKR, SUSHI, and more. Risk parameter changes are a common mechanism within DeFi protocols to ensure the protocol is consistently up to date and up to trend on market and protocol dynamics. Opponents of the proposal make the claim that by setting caps on asset borrowing the protocol runs the risk of losing its competitive edge. There has been an increase in these proposal types across various DeFi protocols as they look to protect against long-tail risks and exploits permeating the market while remaining as competitive as possible.
Gitcoin Holds Steward Council Elections
Elections kicked off this week at the public goods DAO to elect the next cohort of members to its Stewards Council. The Gitcoin Stewards Council was created in March 2022 as a governance mechanism to help recognize, designate, and compensate the most engaged Stewards at Gitcoin. Following the conclusion of the first Council term in October, Gitcoin voted on updates to its council structure and its objectives. Now, the DAO is voting to elect ten new council members from a list of fifteen nominees. Each of the five workstreams at Gitcoin has already elected a member to represent them in this new council. In addition, the workstream leads each selected three viable candidates that are now being considered in the vote. Voting on this proposal is slightly different this time as Gitcoin is incorporating “egalitarian quadratic voting” to elect members. This means that all 178 current Stewards at Gitcoin will each receive 99 tokens to be cast amongst the nominees as they wish all while using quadratic voting. The newly elected council will serve its new term until June 3rd, 2023. Voting on the proposal ends on December 5th.
MakerDAO Votes to Increase DAI Rewards
This week the veteran DeFi protocol voted on a proposal that would alter its current DAI Savings Rate (DSR). At MakerDAO the DSR is an interest rate paid to users who deposit DAI. The main goal of this mechanism is to help maintain the stability of the DAI-USD peg. Its DSR is currently set at 0.01%. To stay competitive during the recent market downtrend, MakerDAO is considering raising the DSR and offering more annual yield to its users. Proponents of the yield increase argue that the move is possible because the protocol has seen a recent influx in revenue from new revenue-generating avenues. In recent months, the decentralized stablecoin protocol has ventured deeper into leveraging real-world assets as sources of revenue during the bear market. The Maker community voted in favor of increasing the DSR to 1%. Following the conclusion of this on-chain governance poll, the proposal will be voted on during the next available on-chain Executive vote.
📡 Coverage
📖 READ our latest brief on Compound, their proposal to revive their Grants Program, and why it matters.
📚 Good Reads
“Introducing: Voting Validation” from Snapshot Labs
“Do you even “Proposal” by Bobby Bola
“The future of DAOs after FTX’s collapse” from StableNode
“Landscape of Professional Delegates” from Senate Labs
“Stargate Snapshot: Sybil Analysis” by Ryan Holloway
“DAOs: FTX Demise Is Win For Decentralization” from Blockworks
“The Uniswap Airdrop - Lessons for the Industry” by jhackworth
“Quantifying Reputation in DAOs (part 2)” by Elijah Spina
“You’re DAOing Me Crazy” by VenturePunk
🧵 Threads
“What’s next for @ProjectSerum” by Serum Protocol
“Gov3” by mel.eth
🎧 Listens
“DAO Treasury Management w/ Tarun Chita” on Bell Curve
“The Nouns DAO Evangelist w/ Jacob Horne” on Building At The Edges
“Quadratic Voting w/ Tim Daubenschütz” on Green Pill Podcast
“Social and Economic Dynamics in DAOs w/ Reka” from Guild on The Ownership Economy
“Why dYdX is Back in the Spotlight w/ Antonio Juliano” on 0xResearch
“DAO Haus and MolochV3 governance smart contracts development” on DAO Governance Education Sessions
🌟 Breakdown: Reverie
🎧 LISTEN back to our conversation with Reverie, the DAO advisory firm. We discuss legal liability in DAO governance, Cosmos governance, the future of B2D, and more.
📜 Notable Proposals
SIP-9: SAFE Claim and Delegation
This proposal seeks to confirm the claim of SAFE tokens from the SafeDAO launch to be immediately delegated to the DAOplomats. The Bankless DAOplomats is a self-described governance-as-a-service group created with the purpose of representing everyday users within web3. Here, the DAOplomats have authored a proposal to receive SAFE delegation on behalf of Sismo as they claim no other value-aligned option exists. The proposal delegates all 433 claimable SAFE tokens to daoplomats.eth.
✅ 96% voting ‘Claim & delegate to DAOplomats’
🗳 Voting Result: Succeeded
⚡ Type: Snapshot Vote
✍ Author: 0xBaer.eth
1inch Network DAO operational framework
This proposal outlines a comprehensive 6-month operational strategy at 1inch as it begins to further decentralize. The proposal introduces a working structure that last two epochs (10 weeks each) comprised of four working groups (pods). During this time the following is proposed to occur: form pools of talent called Pods to onboard talent and develop contributors with needed skills, create incentive structures for contributors to participate in governance, its discussion, and its development, & implement and iterate the above strategies to improve the following epoch. Epoch 1 (aka The First Inch) will begin on the first Monday following the approval of a Snapshot vote and will end 10 weeks after on the last Sunday. The Community, Treasury, and Operations pods will be the initial pods in this first epoch. Each pod will have a Pod Coordinator (elected through an application process) with relevant responsibilities, deliverables, and compensation. The proposal formally requests a sum of 38K USD worth of 1inch tokens from the Treasury to fund the first inch.
👥 Type: Forum Discussion
✍ Author: DAOplomats.eth
Simplify the Developer DAO Improvement Proposal (DDIP) Process
This proposal seeks to update and simplify the existing Developer DAO Improvement Proposal process. Developer DAO, a community of web3 builders, introduced its current governance process (DDIP) in July to help structure how changes to its governance process occur. In this new proposal, the forum vote stage would be removed, the conversation stage would be removed, additional clarity is provided on the allowlist requirements for members who are eligible to elevate proposals for a vote, lowers the threshold of this allowlist from 50K CODE to 25k CODE, and adds further clarity on operating procedures for handling edge cases (conflicts of interests & conflicting proposals). Should the proposal pass in the affirmative all relevant documentation is to be updated and abided within five days.
👥 Type: Forum Discussion
✍ Author(s): @kempsterrrr, @Erik_Knobl
Delegate Optimizations in Governance
This proposal looks to segregate Euler delegates based on their participation within the protocol’s governance. The proposal would split delegates into two categories, Active Delegates and Public Delegates. An ‘Active Delegate’ is defined as any delegate that meets the following criteria: votes on at least 50% of Snapshot votes in a given month, offers voting rationale on each vote and must have fewer than 500 EUL delegated to them. Public Delegates would remain the same as they currently exist. In addition, Active Delegates would be rewarded with higher visibility and added features within Euler’s delegate dashboard. All criteria and suggestions are described as provisional as the proposal seeks further community feedback.
👥 Type: Forum Discussion
✍ Author: river0x
OIP-124 -Fund Olympus Association
This proposal requests funding of 750K DAI in OHM to fund operational expenses from Oct-Dec 2022 at the newly formed Olympus Association. The Olympus Association was created as an independent non-profit organization with the stated goal of research, development, operation, and maintenance of Olympus.
✅ 95% voting ‘Approve’
🗳 Voting Result: Succeeded
⚡ Type: Snapshot Vote
💬 Read the discussion
✍ Author: Apollo_
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