🗳 This Week in Governance - May 23: Faults & Funds
A weekly resource covering crypto governance, politics, and power.
📣 Key Points
Axie Infinity announces governance portal
Nouns Prop House to wind down
Fault proofs to be brought to OP Mainnet
Uniswap DAO to support DeFi Education Fund
Voting Activity (L7)
🗳️ 75,895 ballots
👥 12,746 voters
📜 165 proposals
🌐 57 active DAOsQuery more data using the Governance API
📰 Updates
Axie Infinity announces governance portal
Axie Infinity has launched the Axie Governance Portal and the Axie Score to promote progressive decentralization within its community. The Axie Score, reflecting a member's contributions, will influence voting power in governance decisions. Community members can now vote using their staked AXS through the new portal. The first vote, AIP-001, aims to enhance asset delegation and improve smart contract infrastructure. Voting power will be determined based on staked AXS and Axie Scores, with a snapshot taken on May 20th. This initiative marks a significant step towards decentralized governance and community involvement in Axie Infinity's development.
Nouns Prop House to wind down
Prop House, an alternative mechanism for Nouns to deploy its treasury, will be winding down its operations starting June 1st, 2024. Since its inception in November 2021, Prop House has helped over 80 communities reward more than USD 3 million to their contributors through 350+ rounds. The lessons learned from this experience have led to developing a new product called rounds.wtf, which aims to continue Prop House's mission of facilitating community contributor rewards. The decision to pause Prop House development in its current form was influenced by the complexity of its decentralized, cross-chain solution, which hindered new development and the emergence of new technologies such as Farcaster and Base.
Fault proofs to be brought to OP Mainnet
OP Labs has proposed an upgrade to OP Mainnet to enhance decentralization and security for Optimism withdrawals. Currently, a trusted account posts the L2 state root, a summary value proving any fact about L2’s state, to the L1 chain. This upgrade will allow anyone to post the L2 root, decentralizing the process. The new system uses a “game” mechanism through which users can propose and challenge roots, with financial bonds at stake, to ensure accuracy. Safeguards include off-chain monitoring, a delay before withdrawals to prevent invalid actions, and a DelayedWETH contract to manage bond payouts.
📚 Reads
The DAO Playbook v1, from peth.eth et al.
The Near and Mid-Term Future of Improving the Ethereum Network's Permissionlessness and Decentralization, by Vitalik Buterin
Establish the Compound Governance Support Working Group, from StableLab et al.
1inch DAO Guidelines, from StableLab
Establish GnosisDAO Delegate Program v0 (discussion)
CityDAO is dead, long live CityDAO! (discussion)
🎧 Listens
$100B in Digital Assets: Lukas Schor on Safe, $SAFE, Smart Accounts, and Quantum Computing, on The Defiant
Plurality Book with Carl, Lillian, Shaurya, on GreenPill
Open Sourcing the Superchain (with Optimism), on web3 with a16z
📜 Highlighted Proposals
Gitcoin: Converting $5M GTC to Stables
The proposal seeks to convert $5 million worth of GTC tokens from the Gitcoin treasury into stablecoins, which will then be transferred to a newly established diversification wallet. This move is part of a strategy to prepare for the next bear market and extend Gitcoin's financial runway. The conversion will be executed through a series of incremental sales, utilizing dollar-cost averaging, price-optimized selling, OTC transactions, and liquidity management techniques to minimize the impact on the market. The process will be repeated through additional proposals once the initial cycle is completed. The proposal offers two options for managing the funds: either through the Gitcoin Foundation or by forming a council to oversee the swaps and provide updates to the community. Voting ends on May 29th.
Lido: ReGOOSE: Updated Goals for Lido in the Light of MVI and Restaking
Since the approval of Lido DAO's 2024 goals on November 2, 2023, significant developments, such as the Ethereum issuance debate and the rise of restaking, have occurred. This proposal re-evaluates the DAO’s strategy, suggesting updates to the GOOSE (Guided Open Objective Setting Exercise) goals. It emphasizes focusing on security and decentralization and keeping StETH as a Liquid Staking Token (LST). New goals include participating in Ethereum staking research, supporting Ethereum-aligned validator services, and making StETH the most utilized token in the restaking market. This proposal, which was passed with nearly 100% voting to adopt, will amend the 2024 GOOSE goals.
Uniswap: DeFi Education Fund
The DeFi Education Fund (DEF), established via a Uniswap Governance proposal in 2021, seeks to advance and protect DeFi in public policy. Facing increasing regulatory threats, GFX Labs proposes granting the DEF one million UNI tokens in two tranches to support their mission. Half of the tokens will be locked in a 12-month streaming contract, with the possibility of governance halting the token stream. The DEF has actively opposed regulatory measures that threaten DeFi's decentralized nature, such as restrictions designed for centralized finance (CeFi) and mandates for intermediaries. The DEF has also engaged in litigation against regulatory bodies like the SEC to defend DeFi principles. With additional resources, the DEF plans to expand its team, enhance litigation efforts, increase legislative outreach, and engage in state and international advocacy. Voting ends on May 28th.
💭 Ecosystem Takes
🎈 Have a Meme
📮 Stay Up to Date
Follow us: Twitter | Discord
Subscribe to: Newsletter | Mirror | Apple | Amazon | Spotify