🗳 This Week in Governance - June 21: Tension on Chain
A weekly resource covering crypto governance, politics, and power.
📣 Key Points
MakerDAO grapples with lack of accountability
ApeCoin DAO feasts on Banana Bill
Tally takes on liquid staked governance
Aave’s GHO going cross-chain
Nouns DAO considers expanding web3 educational services
Voting Activity (L7)
🗳️ 29,559 ballots
👥 10,028 voters
📜 201 proposals
🌐 63 active DAOsQuery more data using the Governance API
📰 Updates
MakerDAO grapples with lack of accountability
GFX Labs has proposed to remove Monetalis as an Arranger at Maker DAO due to repeated failures in reporting and underperformance. Monetalis has not published required reports for 2024 and has not produced the mandated annual audit. The forum discussion emphasizes the need for improved transparency and governance, suggesting a new Arranger could better manage MakerDAO's assets and increase returns. Tweets from the community underscore frustration with the lack of accountability and transparency, highlighting that Monetalis continues to collect fees without fulfilling obligations. The debate reflects broader concerns about the governance and management of significant assets within MakerDAO, as well as concerns about the “alignments” of large stakeholders.
ApeCoin DAO feasts on Banana Bill
The BANANA Bill: Apes Gotta Eat proposal under discussion at ApeCoin DAO outlines the creation of the "Banana Program" to support the sustainability and growth of ApeChain. The program includes two initiatives: Commercial Agreements and User Incentives. The Commercial Agreements Initiative focuses on negotiating deals with projects building on ApeChain, aiming to provide value to the ApeCoin DAO. The User Incentives Initiative aims to grow the ApeChain ecosystem by rewarding users and encouraging the creation of decentralized applications (dApps). An Advisory Committee, Program Facilitator, and Strategic Accounts Manager will oversee the program. The total budget is 100 million ApeCoin, with specific allocations for each initiative and administrative expenses. The program aims to generate ongoing revenue and increase the utility of ApeCoin.
Several comments in the forum express concerns and criticisms regarding the proposal’s rapid progression to a vote, allocation of a substantial portion of the treasury, and perceived insider advantages. Some suggest performance-based compensation for the advisory team and more details on fund disbursement schedules. There is a call for greater transparency, proper vetting of individuals, and clear milestones to ensure accountability and trust within the community.
Tally takes on liquid staked governance
The newly introduced Tally Protocol aims to address incentive issues in DAOs by separating the economic utility of governance tokens from voting rights. It introduces Liquid Staked Tokens (tLSTs), allowing token holders to earn staking rewards while maintaining voting power. This protocol enhances DAO security and governance efficiency by redistributing undelegated voting power to active delegates and optimizing reward structures. The modular design supports various staking mechanisms, enabling DAOs to align stakeholders and improve participation.
📚 Reads
The Blockchain Governance Tookit: A Cookbook for a Resilient and Robust Ecosystem, from Project Liberty Institute & BlockchainGov
Defining Web3: A Guide to the New Cultural Economy, by Quinn, DuPont, Kavanagh, and Dylan-Ennis
AI and the "Why Now" of Data DAOs, by Li Jin
The Potential of DAOs for Funding and Collaborative Development in the Life Sciences, by Fantaccini, Grassi, & Rampoldi (gated, in Nature Biotechnology)
Some resources on DAOs, from a16z crypto
47 use cases for blockchains, privacy, and verifiability, from Aztec
🎧 Listens
Morpho: Developing Foundational Infrastructure for DeFi Lending, from StablePod
Swarms: A Primitive for Sovereign Coordination W/ Daniel Ospina, on GreenPill
Governing democracy, the internet, and boardrooms, from Web3 with a16z
📜 Highlighted Proposals
Aave: GHO Cross-Chain - Part 1
This AIP proposes expanding the GHO stablecoin to the Arbitrum network using the Chainlink Cross-Chain Interoperability Protocol (CCIP). The smart contracts have undergone rigorous design, development, testing, and implementation stages, with security validations from Certora and BGD Labs. Following extensive community discussions, this proposal outlines the cross-chain deployment of GHO, with a subsequent proposal for configuring GHO on Arbitrum. The motivation is to enhance GHO’s accessibility, transaction speed, and cost-efficiency, while opening new integration opportunities. The implementation involves deploying and configuring specific smart contracts on both Ethereum and Arbitrum, with the DAO taking control of contract ownership and configuration. Voting ends on June 21st.
Moonwell: Activate Moonwell Protocol on Optimism
This proposal suggests that the Moonwell DAO authorize the activation of the Moonwell Protocol on Optimism. By leveraging Optimism’s advanced scaling solutions, shared values, and funding opportunities, Moonwell aims to enhance its reach and impact. Activation on Optimism would position Moonwell as a leading lending protocol on the network, align with shared decentralization and community governance goals, and access substantial funding and incentives. Optimism offers scalability and reduced transaction costs via Optimistic Rollups. It supports multiple Layer 2 networks through the OP Stack, contributing to a cohesive "Superchain" ecosystem. The proposal highlights the opportunity presented by recent gaps in Optimism's lending ecosystem and outlines initial markets and governance strategies for Moonwell on Optimism. Voting options for DAO members include approval or rejection of the activation. Voting ends on June 21st.
Nouns: Public Good Education Protocol by Nouns DAO
This proposal requests NounsDAO to sponsor $139,000 (40 ETH) for launching kiriko.wtf, a global onchain examination protocol. The project aims to rebrand Crypto Learning Club (CLC) and expand its Web3 educational services internationally. The initiative seeks to enhance the Nouns DAO brand by creating public goods, addressing the current limited allocation (2.5%) of the Nouns DAO treasury for tech products. Kiriko.wtf will facilitate onchain examinations, leveraging blockchain technology to establish user credibility and identity. The proposal outlines a phased development plan, including building the Core Protocol, client applications, and examination subDAOs, aiming to create a sustainable ecosystem with long-term sponsorships and donations. Voting ends on June 24th.
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