ACoconut Governance Explained
Yesterday, we receive feedback from our community questioning about ACoconut governance. This blog will try to answer these questions.
Tl;dr;
- ACoconut governance role is currently occupied by a multisig under the control of NUTS DAO;
- Timelock is not adopted in the early phase in order to standardize NUTS DAO workflow and provide quick fix to potential flaws;
- Timelock will be introduced within 48 hours for critical contracts;
- ACoconut DAO will launch in 2021 Q1 to take control of ACoconut.
11/30/2020 Update
- AC DAO has been removed from the minter list of ACoconut;
- The governance of ACoconut, ACoconutBTC and Controller contracts have been set to the Timelock contract.
12/05/2020 Update
- A new channel, timelock-txs is created in Discord to provide updates on each transaction enqueued and executed on Timelock;
- Three transactions are enqueued in Timelock and announced in timelock-txs channel;
12/06/2020 Update
- The governance role of all peripheral contracts has been set to the Timelock contract.
Who controls ACoconut?
Currently, ACoconut is governed by a multisig under the control of NUTS DAO, which consists of NUTS team, NUTS early investors and Secbit which provides security audits to our products.
NUTS DAO members jointly make decisions on ACoconut’s development and operations, and receives AC dividends in proportion to NUTS token they own.
Why is Timelock not used?
When we launch ACoconut on October 1, we happen to witness Pickle’s migration failure due to a procedural error on Timelock, and how much effort Pickle takes to recover due to constraint of Timelock.
Pickle in a Pickle: A Post-Mortem
After some serious discussion with our community members, we decided not to use Timelock in the early phase due to the following reasons:
- NUTS DAO’s governance already provides significant protection for ACoconut;
- As ACoconut is relatively new, a multisig owned by NUTS DAO can help us recover promptly from potential flaws;
- Last but not least, it’s difficult for us to standardize ACoconut workflow and to adopt Timelock at the same time. We chose to stabilize the most volatile part (ACoconut workflow) first, and we believe that it’s the best approach to avoid such procedural error in Pickle.
Are we still going to use Timelock?
Definitely YES!
We value feedback from our community seriously. Since the community raises serious concern on ACoconut governance, we’ve decided to adopt Timelock on critical contracts of ACoconut within 48 hours.
In fact, most critical workflows have been standardized in ACoconut including but not limited to:
- The distribution of ACoconut for weekly liquidity mining;
- The vesting of ACoconut for the booster program;
- The distribution of ACoconut dividends for NUTS DAO members.
For now, we believe it’s a good time to introduce Timelock, and we expect this to be done within 48 hours. We will keep you posted on the Timelock adoption progress on this blog.
Why does it take 48 hours to adopt Timelock?
It’s not about development. In fact, we have the Timelock contract ready two months ago.
It’s not about the deployment. In fact, we do use Timelock for our renCrv vault migration, but decide to defer its wider adoption with the reason above.
It’s about the standards: we would like to test all standardized ACoconut workflows with Timelock in order to make sure that NUTS DAO + Timelock work seamlessly.
Why is ACoconut current supply small?
This is not directly related to ACoconut Governance, but we would like to answer the question posted by WARONRUGS above.
Different from lots of other DeFi applications, ACoconut is a single-asset(acBTC) multi-application(acSwap, acVault, acLoan…) product. We are conservative on ACoconut distribution as we’ve seen products dropping significant after initial liquidity mining. For example, the TVL of Swerve drops from 1B to 30M after the aggressive mining ends in 2 weeks:
We would like to maintain a better balance between the current and the future of ACoconut, especially for our later products such as acLoan.
