🗳 This Week in Governance - July 4: Lawsuits & Shelters
A weekly resource covering crypto governance, politics, and power.
📣 Key Points
Lido seeks to appoint legal team to respond to class action lawsuit
Nouns considers funding more animal shelters
ENS votes to fund meta-governance group for another term
SuperRare moves to deploy on Base
Voting Activity (L7)
🗳️ 11,738 ballots
👥 4,168 voters
📜 233 proposals
🌐 70 active DAOsQuery more data using the Governance API
📰 Updates
Lido seeks to appoint legal team to respond to class action lawsuit
On April 3, 2024, a class-action lawsuit was filed against "LIDO DAO, a general partnership" in the United States District Court for the Northern District of California. The lawsuit claims that Lido DAO operates an Ethereum staking business and that its LDO tokens are securities sold in violation of securities laws. On June 27, the court confirmed that Lido DAO was properly served and has 14 days to respond to avoid a default judgment.
Lido DAO, which denies being a legal entity, is now voting to appoint Dolphin CL, LLC to argue for the dismissal of the case. The proposal seeks to fund Dolphin with 200,000 DAI to engage legal counsel and file the necessary motions. The risks of not passing the proposal include a potential default judgment with severe consequences, while passing it could imply recognition of Lido DAO as a legal entity, leading to further litigation expenses.
Related: The lawsuit against Lido coincides with the SEC’s recent move to charge Consensys with the unregistered offer and sale of securities through its MetaMask Staking service and operating as an unregistered broker. The SEC alleges that Consensys offered and sold unregistered securities for Lido and Rocket Pool, issuing liquid staking tokens (stETH and rETH) in exchange for staked assets.
📚 Reads
Decisions & Power: In Politics, Business, Law, and More, web3 letter from a16zcrypto
Reimagining Democracy, by Michael Heger
Not Just A Film, from EthereumFilm
1kx’s Thoughts and Feedback on the 2024 Tokenomics Rework (Rocket Pool discussion)
🎧 Listens
Oasis Onchain & Crypto in the Global South w/Stefen Deleveaux, on Rehash
Metrics Based Voting On Retro Funding Round 4 w/ Carl Cervone & Jonas Seiferth, on GreenPill
An Introduction to the Tally Protocol, on DAO Talk
Nouns Culture with The Yellow Collective — Toadyhawk, Benbodhi, on UFO
📜 Highlighted Proposals
ENS: Fund the Meta-Governance Working Group (Term 5)
The Meta-Governance Working Group seeks funding of 374,000 USDC and 150,000 ENS to support DAO-wide operations, including Working Groups, treasury management, and governance initiatives. This request follows Rule 10.1.1 of the Working Group Rules and amendments in EP 4.8, and will execute the funding specification according to EP 5.9, as amended by EP 5.8. The funds will be used to support governance processes and infrastructure development for the ENS DAO and its Working Groups. Voting ends on July 7th.
Nouns: Nouns Shelter 2nd Stage
Six months ago, Nouns Shelter was established through Prop 462, aimed at helping stray animals. Initial achievements include building 300 mini shelters in Shanghai, Beijing, and Changsha, housing 600 cats, donating 2,000 kg of food to a rescue center for 200 dogs, and neutering/spaying 100 strays. Future plans involve expanding to Southeast Asia and Eastern Europe, conducting more welfare programs, raising awareness through a mascot named Wooyee, and developing a donation platform. The budget for the next 12 months is 423,570 USDC, with key goals of hosting shelter events, sterilizing 1,000 animals, and achieving financial sustainability through donations and partnerships. Voting concludes on July 8th.
SuperRare: Proposal for Deployment of Core Protocol Contracts to Base
This proposal recommends deploying key components of the Rare Protocol and $RARE token to the Base layer 2 blockchain to enhance utility and accessibility. It includes the deployment of the $RARE token and a new Rare Bridge utilizing Chainlink’s CCIP for secure cross-chain transfers, the deployment of marketplace contracts to Base to enable experimentation and align with the grants program, and the duplication of the council multisig on Base to maintain DAO governance over contract upgrades and fee accumulation. Benefits include lower transaction costs, increased adoption, and enabling experimentation, while drawbacks include increased coordination overhead and long-term scalability concerns. Voting ends on July 9th.
💭 Ecosystem Takes
🎈 Have a Meme
📮 Stay Up to Date
Follow us: Twitter | Discord
Subscribe to: Newsletter | Mirror | Apple | Amazon | Spotify