🗳 This Week in Governance - October 13
A weekly resource covering DAO news and governance
📣 Key Points
Mango Markets exploited for $100M, Jared Grey navigates wild allegations, Ooki looks to fund a legel defense, ConsenSys forms a DAOlationship with BanklessDAO, StemsDAO raises $4M, and more
Activity:
🗳️ 15,296 ballots (+54%)
👥 7,632 voters (+55%)
📜 168 proposals (+14%)
🌐 55 active DAOs (-44%)
Let’s get into it 🔥
📡 Coverage
OokiDAO Proposes Allocating Resources to fight the CFTC
📖 READ our latest brief on OokiDAO, their legal fund proposal, and why this matters.
🗞 DAO News in Brief
Mango Markets Exploited for $100M
On October 11th, Solana-based DeFi protocol Mango was exploited for $100M. A hacker was able to artificially spike the price oracle which allowed them to withdraw vast amounts of tokens from the protocol. Mango’s team froze borrowing shortly after to prevent further exploits. The hacker proceeded to attempt a governance attack. A governance proposal was posted by the hacker that would have the community pay back its bad debts and pay them a bounty for returning portions of the stolen funds. Unsurprisingly, the hacker has used their stolen tokens to vote on the same proposal and attempt to push it through the governance process. The proposal currently sits short of the quorum threshold and is unlikely to pass as the deadline approaches.
Sushi’s New Head Chef Endures Allegations
SushiSwaps’ newly appointed Head Chef is facing a number of wild allegations against him. On October 10th, multiple allegations against Jared Grey were aired publicly on crypto twitter. A community member from Grey’s former project accused him of stealing funds, scamming multiple projects, taking BTC bribes, and engaging in inappropriate relations with animals. Grey posted a blog post responding to each allegation as false and clarifying his professional background. The new leader hopes to clarify his past and further engage with the Sushi community.
ConsenSys & BanklessDAO form a DAOlationship
ConsenSys and BanklessDAO have teamed up to form a first of its kind, ‘DAOlationship’. On September 14th, ConsenSys posted a proposal to the BanklessDAO forums seeking 50 BanklessDAO onboarding guest passes for ConsenSys employees. Employees would be onboarded to the DAO and be able to participate in a working group of their choice. ConsenSys is a leading infrastructure and application platform that now looks to deepen its involvement with DAOs. This proposed model aims to reduce onboarding and engagement friction prevalent in DAOs today while also unearthing insights in the process. At the request of guild coordinators, a separate budget proposal was drafted to fairly compensate them for the added onboarding workload. This proposal requests that 100K BANK be paid out to the Talent Coordination team. The experiment will run for a total of three months before being re-evaluated.
StemsDAO raises $4M
StemsDAO, a community of musicians creating tracks together, has raised $4M from investors at Ideo CoLab, Merit Circle, YGG, and more. Stems is a decentralized music NFT platform designed for users to share musical stems to create music. These stems allow users to remix existing songs and reimagine them. The Stems platform states it will grant music artists “full control and visibility into their IP and how it is used over time.” The DAO will vote on the best remixes and release them to streaming platforms ultimately generating rewards back to users.
🚀 Breakdown: slobo.eth
🎧 LISTEN back to our conversation with governance delegate Alex Slobodnik. We discussed delegates vs stewards, delegation as an occupation, why ENS is different, and more.
📚 Good Reads
“Notes on Governance Experience Design” from Metagov Project
“Coase in the 21st Century: Building A Contributor DAO” from Llama
“Protocol Fee Switch Education & Research” from Uniswap Foundation
“Sub-DAO Culture: Breaking Down DAO” from Gnars
“DAOs are in era 3.0 thanks to an infrastructure renaissance” from Cointelegraph Research
Introducing supermodular.xyz: Venture Studio Building web3 Regen Projects
“Governance Dashboard” from Euler Finance
🧵 Threads
“The State of DeFi in 15 Charts” by DefiIgnas
“Why Uniswap on zkSync is a big deal” by DefiIgnas
“10 ways players are using Jokedao” from Jokedao
🎧 Listens
“The DeFi Governance Conundrum w/ Kain Warwick of Synthetix” on Decrypt
“Lido Governance w/ Hasu and Sam Kozin” on I Pledge Allegiance Podcast
“DAO Decentralization Thesis & Artificial Intelligence w/nintynick” on Rehash Podcast
“Token Emotions w/ Steph Alinsug of Seed Club” on Boys Club Podcast
“DeFi in the Next Bull Cycle w/ Robert Leshner & Stani Kulechov” on Bell Curve Podcast
📜 Proposals Briefs
Adjust Aave Governance Level 2 requirements
This proposal looks to upgrade the protocols governance contract, Aave Governance v2, to be less restrictive for Level 2 governance proposals. Aave’s current technical governance system is divided into 2 groups. Level 2 is for systems affecting governance processes while Level 1 is for systems NOT affecting governance processes. This proposal would upgrade Level 2 requirements to be much lower to allow potential progress. Its quorum would be lowered from 20% to 6.5%. The vote differential of the Executor would be changed from 15% to 6.5%. A delay of 7200 blocks or one full day between proposal creation and vote started would be implemented. Over the course of 80 proposals submitted to Aave, only one Level 2 proposal was submitted and it failed to pass.
✅ 100% voting ‘Yes’
💬 Read the discussion
⛓ Type: On-chain Vote
✍️ Author: BGD Labs
Do we accept the Prime <> Aragon Strategic Token Swap
This proposal seeks to confirm a strategic token swap between PrimeDAO and Aragon. PrimeDAO is a collective that enables DAO2DAO coordination by building relevant tools. Aragon is a suite of products that enables on-chain permission management. The swap consists of $50K ANT for $50K D2D, calculated using a 7-day TWAP (time-weighted average price) at the time the vote is published. Terms of the deal include a 6-month lock-up period with immediate voting power unlocked upon deal completion. The deal's main benefit is described as further plugging PrimeDAO into Aragon’s ecosystem of modules. Token swaps are often used to enable projects to further align incentives and improve coordination.
✅ 100% voting ‘Yes’
💬 Read the discussion
⚡ Type: Snapshot Vote
✍️ Author: LuukDAO
House of Lil Nouns
This proposal looks to fund the creation of a custom governance client for Lil Nouns DAO. The House of Nouns team here requests a grant from the DAO to build an improved governance experience. The same team previously built House of Nouns for the main NounsDAO, and now looks to implement, improve, and tailor it towards Lil Nouns. This proposed governance client is said to “enable discussion, better data, and crucial member context in order to scale Lil Nouns governance participation to the next level.” The estimated costs of the project are to not exceed more than 5 ETH.
✅ 100% voting ‘For’
⛓ Type: On-chain Vote
✍️ Author: willhayjr.eth
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