DeFiPie DAO is almost here — and you can be part of it

The moment has finally come: we have everything ready to launch the DeFiPie governance module on the mainnet. This is a key step on the way to making the PIE holders full control over the protocol. Learn how you can participate in the testing of the DAO.

Creating DeFiPie, we knew from the start that one day PIE token holders should take over the reins of governance. We are just temporary caretakers, but a true DeFi platform has to be decentralized in all aspects, including decision-making.

It took us over a year to arrive at this point, but now that the lending and staking parts of the dApp are working smoothly, we can finally introduce decentralized governance. It’s on the testnet for now — both because testing is surely needed and because Ethereum gas is so expensive right now that voting on the mainnet wouldn’t be cost-efficient for many of you.

The governance system in DeFiPie is inspired by that of Compound, but with an important difference: voting uses pPIE tokens, not just PIE. Getting them is easy:

1) Deposit PIE in the liquidity pool.

2) In exchange, the pool will issue pPIE.

3) You have as many votes as the number of pPIE you hold.

The advantage of this system over the one used by Compound is that you don’t have to unstake PIE in order to vote. You can keep earning staking rewards and participate in the governance at the same time. We believe that making people choose between rewards and governance is unfair and unproductive: as long as the gas fees remain high, smaller token holders will choose the rewards and forego their voting rights. As a result, a limited number of large stakeholders will have free reign to shape the protocol the way they like, and that’s neither decentralization nor democracy. Unfortunately, that’s what we see in a lot of so-called DAOs.

Coming back to DeFiPie: you’ll be able to choose between voting yourself and delegating your vote to another address (you can revoke this authorization any time).

We have everything ready for the mainnet launch and just waiting for the transaction fees to go down a little bit. For you as a PIE holder and a future DAO member, voting on the testnet won’t cost anything: you can get free test ether from any Rinkeby faucet.

We will post an additional announcement on Telegram and on Twitter before launching the DAO module, and publish a detailed guide here on Medium soon after. Meanwhile, don’t hesitate to ask us any questions on the DAO in the DeFiPie Telegram chat.