Flipside Governance Recap | 27 Jan 2023
Intro
Welcome to the Flipside Governance Team Recap. Here you’ll get a full view of what we‘re up to each week, from penning proposals to publishing research to our all-important voting activity & rationales. Enjoy!
🚨 Team Highlights
Raphael and the Flipside team have secured the coveted spot for MIP 100, working with GFX Labs to propose a framework to work with stablecoin partners.
Using Gemini, Paxos, and Coinbase deals as a model, they propose a new set of standards to inform prospective partners and define a “Favored Stable Status.” A few notable requirements:
- Payout from 100MM upwards
- Incentives paid out monthly, at a minimum
- Competitive marketing incentives that reflect current market conditions
Read more about the discussion here and how Flipside plans to create a more clear expectation for future stable asset allocations:
MIP100: Stable Asset Allocation Framework — The Maker Forum
📰 Across the Industry: Governance News of the Week
Jake Lynch, a friend of Flipside and Partner at crypto-focused VC firm, L1 Digital, has proposed a future for SAFE tokens with added utility.
He likens the Safe App interface (the App marketplace) to “Times Square” and presents the idea of using a staking method to guarantee a feature in this coveted, digital landscape.
In addition to boosting discoverability, teams can stake their SAFE tokens to expedite the development of their own SAFE app and place them higher in the integration queue.
See the initial reaction from the community here:
Aave has voted to deploy V3 on Ethereum, and it is now live on the user interface today 🎉
Attracting over 700,000 AAVE & stkAAVE in voting power, this vote reached an early consensus, concluding with 100% of the voter in favor. V3 is an important development for risk controls, e-mode, and isolation mode.
Look at the Aave UI today — there may be some inefficiencies to take advantage of …
Paxos proposed a memorandum of understanding with MakerDAO to share a portion of the yield of their collateral. The proposal demands a debt ceiling of 1.5B which is 1.5x their current market cap. A lot is being discussed and you can read to your heart’s delight here:
Paxos & MakerDAO Partnership (USDP PSM) — Governance — The Maker Forum
📊 Flipside Governance | Analysis of the Week
On Osmosis, users with staked OSMO tokens can override their validator’s votes by voting themselves. For most governance proposals, user votes make up 60% of the total voting power. However, the share of the voting power controlled by validators is rapidly growing.
What would happen if all the individual users with staked OSMO tokens actually voted? The share of voting power controlled by the validators would be insignificant to the outcome of proposals. The growth in validator voting power is caused by an increase in the amount of staked OSMO that is not actively participating in governance. Increasing the participation rate through either education or incentives would bolster the decentralization of the Osmosis network.
📜 Flipside Governance Activity
For more all-around governance content, be sure to follow us on Twitter or here on Medium. We’ll keep you updated.
Hear, hear! If you dig the work we’re doing for our partner DAOs and want to delegate to us, click the links below to get to the delegation page:
If you are interested in joining the Flipside Governance team, we’ve just posted a new opening here!
Data Analyst | Ethereum (Governance Team)
Take a look and apply if you feel like the right fit! DM @flipsidegov on Twitter for more information.
