Idle Governance is Live!
Today, Idle embarks on a journey to fulfill our vision of a globally available decentralized capital pool, operated by a community-based administration of the protocol.
The Idle protocol is now governed by a DAO powered by the IDLE token, which promotes key activities to ensure a proper protocol’s maintenance and improvements in the years to come. This decentralized network governs and manages the strategic decisions of the protocol, enabling community participants to drive and contribute to the protocol’s future developments.
The DeFi ecosystem has defined new scalability approaches, focusing on transparent and decentralized protocol management, where builders are rewarded for their contributions.
A Cambrian explosion of governance tokens provided us with many case-studies to work on, and we are approaching this phase by combining the most interesting features that emerged in the DeFi-sphere during the last months. The first step of this journey was the development of a solid protocol. Now we need incentives to engage with the best minds: developers, creators, analysts, and entrepreneurs.
Idle Governance system
Starting from today, Idle protocol is managed by the Governance system through IIPs (Idle Improvement Proposals).
IIPs are formal on-chain proposals that are executed if the majority (50% +1) of the voters cast a “For” vote and at least 4% of the total voting right supply [520'000 IDLE] cast a vote on that proposal, in favor or against.
Anybody with 1% of IDLE delegated to their address, and hold it during the entire voting process (up to the implementation), can create a proposal.
In the Idle Governance system, each IDLE corresponds to one vote. IDLE token holders can vote through self-delegation or can delegate the voting action to any Ethereum address
Idle’s governance has been inspired by COMP Governance modules and Uniswap Governance Process.
The IIP process includes off-chain and on-chain voting decisions and consists of different phases to better discern the community’s sentiment and fine-tune proposals. The detailed Community Governance Process is described here.
In the Ideation & Discussion Phase, community members can propose early-stage ideas in the Idle Governance Forum. Snapshots polls help to perceive the sentiment of the community about potential changes.
Once the idea is structured and evolves into a proposal, it can be deployed on-chain. Its activation triggers the Voting Phase, where IDLE token holders cast their votes. If the threshold conditions are met, the proposal can be executed and implemented in the protocol.
This approach creates a scenario with no single point of failure in the voting mechanism. Rules are encoded in smart contracts, publicly visible by anyone, and changeable via proposals.
Governance does not only have the power, but also economic resources.
It manages the Ecosystem Fund, a community-managed treasury to fund various initiatives to improve the protocol, and the FeeTreasury, which collects performance fees accrued by the protocol.
For an overview of the new Idle Governance Model and all IDLE distribution programs, check out our blog post.
Relinquishing Admin Powers
All admin powers are now transferred to IDLE holders.
This represents an important milestone in the evolution of the protocol, allowing the community to lead maintenance and development.
The ability to pause deposit and rebalance actions are still in place for security purposes (yet revocable by token holders) and are maintained by the Guardian multi-sig.
Through proposals, the community is now able to add new lending protocols, change the fee charged by the protocol on yields, upgrade contracts and many more things (eg. manage the treasury, sponsor protocol’s development, etc..).
Additionally, we re-introduced the openRebalance (by which anyone can propose a new allocation for any asset present in Idle and improve the capital efficiency of the pool, if you’re interested you can find more here, or contact the team in Discord).
To read more about admin powers: developers.idle.finance/advanced/admin-powers
How to receive $IDLE and join Governance
Idle’s liquidity providers are entitled to receive IDLE tokens.
By depositing funds in any pool (IdleDAI, IdleUSDC, IdleUSDT, …, both Best-Yield and Risk-Adjusted strategies), you will start receiving IDLE tokens depending on the pool’s APY and size.
We have set up a few guides to walk you through the entire governance process:
- How to receive $IDLE
- How to redeem Early LPs’ $IDLE
- How to delegate $IDLE
- How to vote a proposal
- How to propose an IIP
Pay attention, Idle will not conduct any initial coin offering (ICO) or public sale. Don’t get scammed! If you see any suspicious activity, don’t hesitate to report it on our Discord or Telegram channels.
Idle Governance Registry
Below is a list of relevant smart contracts and Github repositories for using and interacting with the Idle governance suite.
- $IDLE: 0x875773784Af8135eA0ef43b5a374AaD105c5D39e
- Timelock: 0xD6dABBc2b275114a2366555d6C481EF08FDC2556
- IdleGovernance: 0x2256b25CFC8E35c3135664FD03E77595042fe31B
- IdleController: 0x275DA8e61ea8E02d51EDd8d0DC5c0E62b4CDB0BE
- FeeTreasury: 0x69a62C24F16d4914a48919613e8eE330641Bcb94
- LongTerm LP Fund: 0x107A369bc066c77FF061c7d2420618a6ce31B925
- Ecosystem Fund: 0xb0aA1f98523Ec15932dd5fAAC5d86e57115571C7
- Early Rewards: 0xa1F71ED24ABA6c8Da8ca8C046bBc9804625d88Fc
The IDLE and Governance codebase is available to review on Github and has been audited by Quantstamp.
Wrap Up and Next Steps
Here’s a recap of our latest activities:
- Idle launched the Governance Forum, the place to propose new ideas and integrations. Join us at gov.idle.finance
- The team secured $ 1.2M from industry leaders to scale its Yield Optimization Protocol.
- The overview of the new Idle Governance Model has been published here.
Stay in the loop
We’re building Idle for the Ethereum ecosystem and its great community. We’d love for you to be part of our development process.
Here you can find our documentation: developers.idle.finance
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