Flipside Governance Recap | 9 December 2022
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 🚨
- MIP39c3-SPX — Core Unit Offboarding (SAS-001 and IS-001): Raph wrote and submitted two key proposals this week to off-board the ImmuneFi and Sidestream Auction Core Units following their budget rejections by MakerDAO.
- The Govy Show Episode #13: On this week’s episode, the Govy team members discuss tradeoffs between high-quality decision-making vs. maximum participation in governance. It’s a tough one. Tune in to find out how we think it varies per DAO and under which conditions it’s better to optimize for quantity/quality.
Our Research and Content ✏️
- Voting Systems | Simple Majority, Ranked Choice, & Approval Voting. Plus, a guy called Condorcet: Raph walks us all the way from the birth of mathematician and philosopher Condorcet in 1743 to the voting schemes we see in DAOs today. Seems like a reach? It’s not. The problems of participation and ideal voting systems are the same. Find out what we can learn from an 18th century Frenchman and how to apply it to DAOs today.
Across the Industry: Governance News of the Week 📰
- Optimism Announces the Citizens House and 10M OP to Public Goods: A moment we’ve all been waiting for — Retroactive Public Goods Funding Round 2 (10M OP) is set to arrive in February 2023. This will also be the initial release of the Citizens’ House, the one-person-one-vote counterpart to the Token House in the Optimism Collective. RetroPGF is the primary mandate of the Citizens’ House to make the Optimism ecosystem last and thrive 🔴✨.
- Waves Blockchain Founder Explores New DAO Model to Improve Crypto Governance: Sasha Ivanov has developed “Power Protocol,” to tackle the proven inadequacy of token-based voting. Power protocol is designed to set and then measure KPIs and offer financial rewards and penalties to facilitate accountable, transparent and efficient community collaboration. The first DAO to take the Power Protocol for a spin is Waves’ Power DAO.
- Nouns DAO $123K Donation to ZachXBT Blocked, Vote to be Repeated: Prop 177 was passed on December 7 for the Nouns DAO to allocate $123k in funding to ZackXBT (renowned crypto scam exposer). The proposal received 180 votes in favour and 20 against. Sounds like a sure deal, right? Well while the proposal was queued, a fresh wallet address with only two transactions cancelled the move. Who could this mysterious figure be??? Was ZachXBT onto them??? 🧐
Flipside Governance | Analysis of the Week 📊
Snapshot Data: Uniswap 🦄 🦄
We’ve got some breaking news to report from our Snapshot data dashboard.
In the race for most active Snapshot space over the past week, Uniswap surpassed Aave. 15,640 unique Uniswap voters turned out for two proposals; let’s see what all the fuss is about ;).
Uniswap governance can be summarised into three parts: 1) Temperature Check (Discourse & Snapshot), 2) Consensus Check (Discourse & Snapshot), 3) Final Proposal (Uniswap governance portal).
The last two Snapshot proposals that carried Uniswap into the no.1 spot were:
- [Consensus Check] Fix the Cross Chain Messaging Bridge on Arbitrum, which closed on December 3 and received 100% (13M UNI) of votes in favour.
This proposal is fairly straightforward. Uniswap Labs governance is deployed not only on Ethereum L1, but also Polygon, Optimism, Celo, and Arbitrum. These domains do not have native access to the on-chain governance system or native UNI tokens and as a result, each chain has implemented completely different methods. “The system governing the Arbitrum deployment was mis-configured due to a mis-communication between developers, and will require more involved intervention to repair”.
- [Temperature Check] Deploy Uniswap V3 on Scroll testnet, which closed on December 4 and received 74.08% (8.6M UNI) of the votes in favour and 25.92% (3M UNI) against.
This proposal has a bit more oomf to it. It was created by Scroll in the vein of a Multichain Uniswap future. Scroll is an EVM equivalent zk-Rollup L2 scaling solution for Ethereum. Deploying on the Scroll testnet will put Uniswap in the position to battle test the protocol and get a head start in the zk-Rollup ecosystem.
Figure 2 demonstrates the number of new Uniswap voters shot up to over 6,500 for the last two proposals…likely a lot of Scroll enthusiasts helping the Temp Check to get over the finish line.
Why does any of this matter?
Traders are flocking to DEXs in light of recent events. Uniswap has a whopping $4B TVL and $71M in trading volume over the last 24 hours. The DEX even overtook Coinbase trading volume in November 😮.
With demand for DEXs growing loudly, it makes sense for Uniswap to diversify its deployment to ensure it can reach as many users as possible. As a leading DeFi protocol, Uniswap is also setting the example that a multichain future is the way to go.
Flipside Governance Activity 📜
For more all-round 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 are always listening — DM @flipsidegov on Twitter.
