Limbo Dev Update: Governance

Outline of article

  • Breakdown of Limbo into 3 parts
  • LimboDAO and proposals
  • Fate, the voting currency
  • Earning Fate by staking EYE or EYE LP
  • Fictional example to demonstrate how governance would work
  • Dev update
  • A word on code transparency

A high level view of LimboDAO: proposal oriented governance

Fate: the currency of voting

  1. Create a reason for holders of EYE and EYE LP tokens to gain voting power.
  2. Encourage long term holding of EYE over having people acquire EYE just in time to vote, only to dump it post vote but…
  3. Give voters control over how long they wish to hold their EYE rather than require mandatory lock up periods.
  4. A negative incentive to prevent proposal submission spam but…
  5. we don’t want voters to lose any EYE or EYE LP.
  6. Smallholders (fish) should have a reasonable incentive to participate in the presence of whale voters.

“Do you believe in Fate, Neo?” — Morpheus, Matrix, 1999

The measuring of fate by the Moirai -John Melhuish Strudwick
  1. Stake EYE. Staking EYE yields the square root of the staked position per day. Eg. if you stake 100 EYE, you receive 10 Fate per day. The fate is issued on a per second basis so that if you stake 500 EYE, you receive 0.000258804 Fate per second.
  2. Stake EYE LP. Staking Uniswap V2 or Sushiswap LP that contain EYE will yield fate. Take the square root of the EYE balance of your LP tokens and multiply it by 2. For instance, suppose you have an ETH/EYE LP that contains 1.4 ETH and 400 EYE. You will receive (2√400) =40 Fate per day.
  3. Burn EYE and immediately receive 10x the EYE burnt in Fate. This option, though undesirable, is for when a very bad proposal appears to be on the verge of winning and there isn’t enough time to acquire the necessary fate in time. Alternatively when a good proposal is in danger of losing. To illustrate how potent this is, suppose you require 100 Fate to seal a vote. You have 10 EYE on hand. If you stake your EYE, you’ll receive 3.16 Fate per day. This will take 32 days to acquire 100 Fate. Alternatively if you burn the 10 EYE, you’ll receive the 100 Fate right now. The benefit of this power play is that it effectively gives small holders veto power to intercede in the case of bad votes but the cost of that veto power is an enormous skin in the game sacrifice.
  4. Burn LP tokens. Here, the LP tokens aren’t technically burnt but simply locked permanently in the LimboDAO contract. The formula is 20x the balance of EYE in the LP tokens.

Fictional Example

Progress in Dev

What’s next?

Transparency

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