🗳 This Week in Governance - June 27: Alignment, Evolution, and Change
A weekly resource covering crypto governance, politics, and power.
📣 Key Points
Arbitrum DAO considers staking to “align governance”
ApeCoin DAO stirs for structural change
ArbitrumHub evolution voted down
Decentraland weighs changes to proposal process
Voting Activity (L7)
🗳️ 26,591 ballots
👥 7,511 voters
📜 262 proposals
🌐 66 active DAOsQuery more data using the Governance API
📰 Updates
Arbitrum DAO considers staking to “align governance”
A proposal in the Arbitrum forum introduces an ARB staking mechanism that would use 50% of future surplus sequencer fees to enhance the economic security of the DAO and encourage active governance participation. ARB holders who stake and delegate governance power would receive fees proportional to their stake. The Arbitrum DAO has accumulated over $50M in surplus fees to date, but only 10% of ARB is actively used in governance. The proposal seeks to address this by rewarding ARB stakers, thus improving security and engagement.
Tally is proposed to integrate ARB staking into the existing Arbitrum DAO platform, allowing users to stake and delegate their ARB tokens seamlessly. Tally will develop a liquid staked ARB token (LST) that auto-compounds rewards, maintains liquidity, and is compatible with DeFi protocols, enabling staked positions to participate in governance while remaining liquid. This token will automate accessing and redepositing staking rewards, enhancing the ARB LST's utility within the Arbitrum ecosystem. The implementation will build on Unistaker, incorporating features like requiring delegation to active delegates and directing 1% of fees to them. The estimated timeline (which extends to sometime in September) includes feedback, development, audit, and submission stages, with a retroactive payment of 100,000 ARB requested for development costs.
ApeCoin DAO stirs for structural change
Several proposals (mostly by the same author) recently posted in the ApeCoin forums signal dissatisfaction with the current state of the DAO. One proposal recommends disbanding the Metaverse, Marketing & Communications, and Web3 Development Working Groups due to their ineffectiveness and high costs, saving the DAO nearly $2.5 million annually. The proposal suggests reallocating funds to hire experienced third-party contractors for specific tasks. Another proposal suggests reducing all administrative staff salaries to a flat rate. A third proposal would require election candidates for Special Council or Working Group Steward roles to have verifiable experience, public disclosure of their full names, six months of prior Discourse membership, and a minimum Trust Level 2 on Discourse. And finally, a fourth proposal hopes to mandate the fast-tracking of specific proposals by DAO leadership for immediate review and vote, ensuring transparency and accountability. It would require full disclosure of any ongoing proposals and relationships by Ape Foundation teams. The stated aim is to prevent favoritism, secure DAO credibility, and maintain openness.
📚 Reads
Gitcoin 2.1 - where we’ve been, where should we go? by Kevin Owocki
Klima 2.0 - Metamorphosis (KlimaDAO RFC)
🎧 Listens
Grants Canvas with Coach J, on GreenPill
The SEC Ends Its Ethereum 2.0 Investigation, but Staking Isn’t in the Clear, on Unchained
📜 Highlighted Proposals
This proposal outlines the next phase for ArbitrumHub, following the successful development of ArbitrumHub.io. The platform aims to become the central hub for the ArbitrumDAO community by providing comprehensive and user-friendly access to essential information and community engagement tools. Key features include real-time updates, event coordination, support resources, enhanced visibility through social media, and integration of developer tools and grant information. The proposal details upcoming features, technical enhancements, and an implementation timeline, emphasizing robust community participation and security. ArbitrumHub aims to address the need for a centralized resource to keep the growing ArbitrumDAO community informed and connected, fostering continuous growth and engagement. Voting ended in June 26th with over 99% voting against. While the proposal received considerable positive feedback, the main resistance was the $474k, six-month budget, which was deemed excessive.
Decentraland: Amend DAO Governance Proposal Stages
This proposal aims to amend the current DAO Governance Proposal Stages by introducing a streamlined two-stage process, superseding the original policy where conflicts arise. The existing process is criticized for its lengthy duration, taking a minimum of 26 days to enact changes, which hampers timely policy updates. Decentraland's activity has significantly slowed, necessitating quicker governance to remain competitive in the fast-paced web3 environment. The proposed solution includes: Stage 1 (Initial Pitch, 72 hours) and Stage 2 (Detailed Policy Proposal, 168 hours), and eliminates the original Stage 3. Voting concludes on July 1st.
Uniswap: Uniswap Arbitrum LTIPP Matching
In April, the UADP applied for Arbitrum’s Long Term Incentive Pilot Program (LTIPP), securing 1,000,000 ARB, the highest amount among DEX applicants. (The LTIPP, a three-month pilot program, involves distributing 45M ARB among selected protocols.) The Uni DAO was requested to consider matching this amount, with voting options of $250k, $500k, $750k, and $1M. The snapshot vote resulted in a $750k match; the current proposal is the final, on-chain version. The funds, to be distributed in collaboration with Gauntlet and Merkl, will primarily incentivize liquidity providers and support governance initiatives. Voting concludes on June 30th.
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