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DAOs: Aave launches GHO stablecoin, Optimism defines governance goals, Polygon introduces new governance model, Arbitrum votes on Grants Framework, Uniswap proposes a new token model, Nouns considers ecosystem-wide governance standards, BarnBridge under SEC investigation, Public Goods Network launches L2 ecosystem, and more!

Paradigm
Paradigm

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Biweekly report on decentralized autonomous organizations vol.40, 1st July — 21st July

TL;DR

  • Aave’s AIP to launch GHO, an Aave native stablecoin, passed. Aave considers modifications to a direct-to-on-chain proposal framework. Furthermore, BGD Labs introduces a.DI, a cross-chain communication layer for Aave DAO
  • Arbitrum considers a grants DAO, votes on a Grants Framework. Arbitrum introduces phase 1 of its Foundation Grants program
  • Optimism discusses financial-interest disclosures among and between projects and delegates. Optimism articulates governance goals for upcoming seasons
  • Polygon introduces new governance model, tokenomics for 2.0
  • Uniswap proposes a new token model. ARB Distribution Proposal ended
  • Gnosis x LayerZer0 drop proposal is active, GIP-88 failed. Gnosis has announced the launch of Gnosis Pay, a decentralized payment network powered by Polygon’ zkEVM
  • SafeDAO reveals the first draft of a new governance framework. Safe weighs token value alignment program
  • Compound’s proposals 167 & 168 passed, 166 failed. Compound considers new grants program
  • Nouns considers ecosystem-wide governance standards. The Public Good Global Expansion proposal ended
  • Public Goods Network launches community-led L2 ecosystem. Furthermore, Hop kicks off discussion about proposal to deploy on the Public Goods Network
  • Maker DAO’s important changes for ETH, WSTETH, RETH, and WBTC vault types are on the way. As per the latest Executive Vote, stability fees and liquidation ratios to be reduced
  • Gitcoin has endorsed a proposal to introduce the quadratic experimentation and development program, designed to address the limitations of the current quadratic funding model
  • Azuki DAO seeks action after Elementals mint
  • Index Coop aims to improve limitations of protocol, on-chain structured products
  • Paladin presents Tokenomics 2.0: the vote flywheel
  • Olympus discusses improvements in communication
  • Euler provides an update on the development of V2
  • Angle discusses roadmap to onchain governance
  • 1inch DAO considers grant request to develop a constitution
  • Jokerace version 3 moves beyond token-voting
  • BarnBridge DAO under SEC investigation
  • GFX Labs launches Oku, advanced DeFi trading platform
  • Arkham launches world’s first on-chain intelligence exchange
  • ApeCoin’s Understanding and improving the governance participation proposal
  • VitaDAO’s VITA-FAST Governance and Constitution proposal
  • Sushi’s Legal Entity Update & Proposed Changes proposal
  • Aura Finance contemplates hiring Chainalysis
  • BitDAO has voted to contribute 100M to establish the Mantle EcoFund to support founders and protocol technology partners building within the Ethereum L2 Mantle ecosystem
  • Podcasts on DAOs
  • Upcoming events on DAOs and Web3
  • And more!

Overview

Blockchain technology is already radically transforming the financial system. However, properties such as trustlessness and immutability aren’t only useful in monetary applications. Another potential application is governance. Blockchains could enable entirely new types of organizations that can run autonomously without the need for coordination by a central entity.

“Instead of a hierarchical structure managed by a set of humans interacting in person and controlling property via the legal system, a decentralized organization involves a set of humans interacting with each other according to a protocol specified in code, and enforced on the blockchain.” — Vitalik Buterin

DAO stands for “decentralized autonomous organization” and can be described as an open-source blockchain protocol governed by a set of rules, created by its elected members, that automatically execute certain actions without the need for intermediaries.

In simple terms, a DAO is an organization that is governed by computer code and programs. As such, it has the ability to function autonomously, without the need for a central authority.

Like how DeFi is programmable money and how NFTs are programmable media, DAOs are programmable organizations of people.

DAOs Ecosystem Statistics

Deepdao.io

Top DAOs

The rating is headed by Arbitrum One and Optimism Collective.

Deepdao.io

Read on DAOs

Listen

Governance

Aave

Deepdao.io

GHO is now live on the Ethereum Mainnet

Today, we are excited to share that the Aave DAO has approved and executed the proposal to activate GHO - the Aave…

aave.mirror.xyz

Aave News #101 - Let's GHO

The AIP to launch GHO on mainnet it live for voting 👻

aavenews.substack.com

Aave: GHO Mainnet Launch: This proposal seeks to launch GHO, a native stablecoin for the Aave platform, with two initial facilitators: the Aave V3 Ethereum Facilitator and the FlashMinter Facilitator. If approved, users of Aave V3 on Ethereum will be able to mint GHO against their collateral, making stablecoin borrowing on the Aave Protocol more competitive and generating additional revenue for the Aave DAO. The introduction of GHO would also allow the DAO to manage GHO’s financial framework in a decentralized way and adjust GHO’s interest rate as necessary.

BGD Labs Introduces a.DI, a Cross-Chain Communication Layer for Aave DAO: BGD Labs has presented a.DI (Aave Delivery Infrastructure), a cross-chain communication abstraction layer designed for decentralized systems like the Aave DAO. The system aims to facilitate communication across networks while minimizing the risk associated with underlying bridge providers. a.DI is a set of smart contracts that gives full sovereignty to the Aave DAO, reducing trust in the underlying bridges to a minimum. The system is designed to be adaptable for almost any kind of cross-chain communication needs. It also includes a mechanism that distinguishes between operational and emergency modes, allowing for full control and flexibility in various scenarios. The launch of a.DI is a critical component of Aave Governance v3.

Aave considers modifications to a direct-to-onchain proposal framework: The forum post proposes a renaming of the existing Cap Update Framework to “Direct-to-AIP Framework” and the addition of an emission manager role. The new framework aims to provide a more streamlined governance process for specific protocol actions, bypassing the TEMP CHECK & ARFC stages and going directly to the AIP stage with only an ARFC forum post-publication requirement before AIP creation.

Aave DAO to Vote on Gho Stablecoin Deployment on Ethereum

Gho has been available on the Ethereum blockchain's Goerli testnet since February, where it has functioned without…

www.coindesk.com

Boardroom.io

👻 Aave Improvement Proposals

Closed proposals

Discussions

Latest governance topics on governance forum.

Compound

Deepdao.io
Tally

Compound considers new grants program: AlphaGrowth has conducted a review of the Compound Grants Program 2.0 (which was managed by Questbook) and found that while grants are important, the protocol could benefit from another approach. They propose implementing a detailed plan for expansion and Request for Proposals (RFPs) to facilitate the growth of the Compound protocol. The draft list of RFPs for CPG 3.0 includes initiatives for vertical and horizontal growth, user awareness, alternative UI/UX for traders, delegate engagement, multi-chain expansion, and regulatory outreach. AlphaGrowth aims to gather feedback from the Compound community to finalize the RFP list and move forward with the Compound Grants Program 3.0.

Boardroom.io

Closed proposals

Discussions

Latest governance topics on governance forum.

Gitcoin

Deepdao.io

Gitcoin Digest #13 2023

🔥 Hot Topics: CSDO members decided to reduce spending by 40% compared to what was budgeted. @kyle provided an Update…

gov.gitcoin.co

Recent blog posts & news

Tally
Boardroom.io

Closed proposals

Discussions

To read more about the different proposals and take part in the decision, check out the governance forum.

Gnosis

Deepdao.io

Recent blog posts

Boardroom.io

Active proposals

Closed proposals

Discussions

Find out the latest GnosisDAO proposals here.

Lido

Deepdao.io

Recent blog posts

Boardroom.io

Closed proposals

Discussions

To read more about the different proposals and take part in the decision, check out the governance forum.

MakerDAO

Boardroom.io

Ended Polls (1 Poll — ended Jul 06)

Executive

Discussions

Read more about the different proposals and take part in the decision.

Uniswap

Deepdao.io

Uniswap proposes a new token model: The forum post proposes a new token model for Uniswap’s UNI token in light of the v4 code release. The author suggests that the UNI token could replace ETH as the primary asset pair for long-tail assets on Uniswap, arguing that UNI has essentially zero opportunity cost and is more correlated to long-tail assets than ETH, making it less susceptible to impermanent loss. To facilitate this, the author proposes a two-part plan: the creation of a Uniswap Credit Facility (UCF) to make UNI more accessible to liquidity providers, and the implementation of incentives programs to encourage the use of UNI as the base pair.

Tally
Boardroom.io

Closed proposals

Discussions

To read more about the different proposals and take part in the decision, check out the governance forum.

Upcoming Events

July 25–26: WebX, Japan
August 15–16: Blockchain Futurist Conference
August 16–18: Metafest, Croatia
August 21–25: Istanbul Blockchain Week
August 24–25: Coinfest Asia
September 6–7: Nordic Blockchain Conference

MISC

Polygon introduces new governance model and tokenomics for 2.0: On July 19 Polygon introduced a new governance model for Polygon 2.0 that aims to decentralize decision-making across the Polygon ecosystem. The proposed framework is based on three governance pillars: Protocol Governance, System Smart Contracts Governance, and Community Treasury Governance, each with its own decision-making mechanisms and actors, inspired by successful blockchain governance models such as Ethereum’s. Some days earlier, Polygon had announced new tokenomics for Polygon 2.0: A post outlines POL, a technical upgrade of MATIC the native asset of the Polygon network. The POL token is designed to be a “hyperproductive” token, allowing holders to validate multiple chains and perform multiple roles within each chain, with the aim of aligning and incentivizing validators to perform useful work, thereby securing and promoting the growth of the Polygon ecosystem.

Arbitrum: [Non-Constitutional] Fund the Arbitrum Grants Framework Proposal Milestone 1: This proposal is to allocate 3.971 million ARB (0.08% of the total treasury) towards the establishment of an Arbitrum DAO Pluralistic Grants Program, with the intention of positioning Arbitrum as the preferred scaling solution for Ethereum. This initial funding will be divided among Arbitrum ecosystem development (72%), Plurality Labs Services (12.5%), Grant Program Managers (7.2%), matching Gitcoin funding pools (8.3%), and a project buffer (10% of total funds). The project will be assessed based on metrics including active developer count, GitHub quality, delegate satisfaction, voter participation, and capture-resistance, with the Plurality Labs team undertaking multiple responsibilities. At the time of writing (a few hours before the end of the proposal), 55% had voted in support.

Arbitrum introduces phase 1 of its Foundation Grants program: The Arbitrum Foundation has launched its inaugural grant program, aimed at fostering ecosystem growth in alignment with partner projects and educational initiatives. The program, which operates in distinct phases, will focus on decentralized applications and infrastructure for Arbitrum Nova and Arbitrum One in its initial phase, with grants issued based on milestones and Key Performance Indicators (KPIs) established in collaboration with each applicant.

Optimism articulates governance goals for upcoming seasons: The Optimism Foundation recently re-articulated Optimism’s principles and goals and identified key milestones for upcoming seasons. The Optimism Collective maintains a two-house governance system made up of the Token House (OP token holders and their delegates) and the Citizens’ House (a one-person-one-vote system based on reputation). This design — which may evolve over time — allows for diverse representation, prevents concentration of power, and encourages decision-making from different perspectives. The governance system focuses on two primary goals: ensuring capture resistance and effectively allocating resources to support the Collective’s vision. Key milestones for the next season (Season 5) include developing sequencer governance, joint-house voting, and replacing the Foundation’s multisig with a Security Council composed of community members “tasked with executing protocol upgrades at the will of governance.”

Optimism community votes on Missions: Voting for Mission proposals is live until July 13th, with Intents #1 (Progress Towards Technical Decentralization), #2 (Spreading the Optimistic Vision), and #3 (Governance Accessibility) before the Token House. A number of Missions are proposed under each Intent; participants are to use approval voting to express their support.

Optimism discusses financial-interest disclosures among and between projects and delegates: The original forum post raises the question of a potential conflict of interest involving General Magic, led by Griff Green, and its connections to several mission proposals in the Optimism DAO. General Magic, which provides grant writing services and contract work to grant proposers, has been linked to several proposals that Griff, a delegate with approval power, has voted to advance. The post raises questions about whether Griff or General Magic has a financial interest in getting these applications approved, whether this interest has been properly disclosed, the terms of upfront lending to these projects, the eligibility of affiliated proposals for voting, and the potential implications on governance distributions and practices.

BarnBridge DAO Under SEC Investigation: The US Securities and Exchange Commission (SEC) is reportedly investigating BarnBridge, a DeFi protocol powered by Ethereum that focuses on tokenizing risk exposure. The news was confirmed by BarnBridge CEO Tyler Ward and legal counsel Douglas Park, who advised that all work on BarnBridge products should cease to reduce further legal liability. The DAO has also shut all existing liquidity pools and restricted the creation of new ones. The investigation follows a series of actions taken against crypto firms by regulatory bodies.

VitaDAO: VITA-FAST Governance and Constitution: The VITA-FAST Governance and Constitution proposal outlines a governance structure for stakeholders, which include VITA-FAST token holders, VitaDAO, the Korolchuk lab, Newcastle University, Molecule, and other interested parties. The governance model includes token-based voting, working groups, a multisig system, and a proposal process, with token holders having ultimate authority over the project. The proposal also introduces governance incentives and provisions for majority rule and minority rights.

Sushi: Legal Entity Update & Proposed Changes: This community-signal proposal aims to assess sentiment about updating the legal entity structure of Sushi DAO to enhance liability protection and expand global compliance. It suggests incorporating additional legal advice from Gresham International to develop a more comprehensive model beyond the initial proposal by Fenwick & West LLP, which would provide increased options for future business initiatives and ensure business continuity.

Jokerace Announces Version 3, Abandons Token-Voting: Jokerace has launched its version 3 platform, which aims to make token-voting obsolete. The platform allows users to create an on-chain allowlist of participants for submitting and voting in on-chain contests. This means that communities can now handle full governance on any EVM-compatible L2 without the need to bridge, mint, or distribute tokens. Furthermore, the new system allows communities to operate without tokens entirely, as the community is defined by the allowlist, which can be based on any behavior that can be mapped to an on-chain address. This opens up new possibilities for customer acquisition and retention, as contests can incentivize users to engage with a product or community, provide valuable data on user preferences, and encourage public marketing of a brand.

Public Goods Network Launches Community-Led L2 Ecosystem: The Public Goods Network (PGN) has announced the launch of a community-led L2 ecosystem aimed at generating abundant and legitimate funding for public goods. PGN is an EVM-compatible rollup, with the majority of net sequencer fees going towards supporting public goods in Ethereum and beyond. The network is backed by several organizations, including Protocol Guild, clr.fund, Public Nouns, Giveth, and Gitcoin. The Public Goods Network will be a public good itself, allowing developers to fill blockspace on PGN, thereby fueling the objective of growing and funding public goods. Future projects can receive revenue directly through sequencer fees via Contract Secured Revenue, aligning incentives between the network and the developers building on it.

Hop kicks off discussion about proposal to deploy on the Public Goods Network:The proposal suggests deploying the Hop Bridge to the Public Goods Network (PGN) mainnet. PGN is an L2 OP Chain dedicated to funding public goods, and deploying the Hop Bridge on PGN would expand the network’s impact and strengthen the relationship between the Hop community and the public goods funding community. The deployment is seen as a low technical risk, and the PGN team is focused on mitigating any potential overhead associated with supporting the network.

Olympus discusses improvements in communication: The forum post aims to formalize the responsibility of the Olympus Governance Council (OGC) for ongoing communications within OlympusDAO. This includes responsibilities such as summarizing and disseminating information on proposals, engaging with the community, and responding to queries. The post suggests delegating specific communication tasks to functional counterparts within the organization and establishing clear guidelines, reporting, and accountability measures. Discussion appears to have led to consensus about an acceptable path forward.

Paladin presents Tokenomics 2.0: the vote flywheel: The forum post proposes the implementation of a Vote Flywheel (VF) to address three objectives: creating buy pressure for the PAL token, incentivizing hPAL locking, and preventing PAL emissions from being dumped. The VF would allocate emissions to different subsystems, namely “Quest PoL” and “Vote Flywheel,” and stakeholders would have the ability to allocate votes and participate in these subsystems pro-rata. Further discussions and proposals will cover the total budget, the source of real-yield for LOOT, and the parameters of the boost system called Faith.

GFX Labs Launches Oku, Advanced DeFi Trading Platform: GFX Labs has launched Oku, a state-of-the-art DeFi trading platform built on Uniswap v3, aiming to combine the functionality and user experience of a traditional exchange with the security and transparency of Uniswap v3. Oku supports all existing and new pools on Uniswap v3, eliminating the need for token listing requests typically required by traditional exchanges. The platform also supports limit orders, allowing users to configure and execute trades with specific conditions within any pool. Oku extends its reach beyond Ethereum, offering support for additional blockchains such as Polygon, Arbitrum, Optimism, with plans to expand further in the future. Unlike traditional exchanges that claim a percentage of each executed trade, Oku operates without any user fees.

Arkham Launches World’s First On-Chain Intelligence Exchange: Arkham has announced the launch of the Arkham Intel Exchange, the world’s first on-chain intelligence marketplace. The platform aims to power the intel-to-earn economy by connecting people who want to buy and sell intelligence on any crypto wallet address. The Intel Exchange uses a bounty mechanism to match buyers and sellers of on-chain intelligence. Anyone can post a bounty seeking some on-chain information, and these bounties can be fulfilled by ‘bounty hunters’ who exchange intelligence for payment. All transactions on the Arkham Marketplace will take place through smart contracts audited by partner Quantstamp.

Azuki DAO seeks action after Elementals mint: A group of OG Azuki holders, who have supported Azuki since its inception, have expressed their dissatisfaction with the team’s actions, especially concerning the recent Elementals NFT mint. They proposed that Azuki Dao hire a lawyer to file a lawsuit against Zagabond, seek a refund of 20,000E from the team, and allocate it to the Dao for community growth and incentives. Additionally, they suggested providing financial support to the 20000E Dao for organizing a research team for the lawsuit. The proposal, which is symbolic and non-binding, passed with 88.35% voting FOR. There is a currently active proposal from the DAO to “enable community governance” through elections for multisig custodians.

Nouns considers ecosystem-wide governance standards: This co-proposal seeks grants of 16 ETH from Nouns DAO and 4 ETH from Public Nouns to support DAOstar in achieving EIP-4824 (“common interfaces for DAOs”) compliance within the Nouns ecosystem and establishing a standards working group for the broader Governor ecosystem. The project aims to develop interoperable standards and critical public infrastructure for DAOs, particularly focusing on Nounish organizations, which can benefit from enhanced discoverability and interoperability by adopting the EIP-4824 framework. Additionally, the proposal includes building infrastructure to support standard adoption by Nouns and similar systems built on Governor and providing necessary support for EIP-4824 compliance.

Nouns: Public Good Global Expansion: This proposal outlines a plan for the expansion of the Public Good brand, which has created a cc0 beer reflecting the culture of cc0, Public Good, and Nouns. The proposal requests a total of 47,000 USDC (~25 ETH) to fund three strategic directions: expansion into new regions through partnerships with breweries in the US and Europe, increased marketing efforts in Brazil, and the introduction of new product categories such as BBQ sauces and sunscreen. The proposal emphasizes the role of real products in amplifying visibility and legitimizing the ecosystem outside of crypto Twitter, thereby facilitating onboarding and paving the way for the ecosystem to work beyond speculation. The proposal ended on July 10 with just over 50% voting against funding the project.

Nouns to pause auctions? According to maty.eth, a recent proposal by an anonymous wallet suggests temporarily pausing auctions in the DAO, which challenges the DAO’s motto of “One Noun, Every Day, Forever.” The potential impact of pausing the auction is unclear, but it raises questions about the Nouner reward and the potential effects on secondary sales and the availability of NFTs below book value. This proposal is expected to spark an interesting debate within the community.

1inch weighs proposal for DAO constitution design with grants program and financial reporting: Bankless Consulting proposes a three-phase collaboration with the 1inch team to develop and manage a robust DAO constitution, Grants Program, and Financial Reporting Functions. The design phase involves intensive input gathering and workshops with 1inch stakeholders to create a comprehensive DAO Constitution, short and medium-term strategies for the Grants Program, and a sound financial reporting process. The proposed activities include defining the scope and purpose of the DAO, conducting market analysis and design thinking sessions for the Grants Program, and establishing financial reporting responsibilities and processes.

1inch DAO considers grant request to develop a constitution: The forum post details a grant request by the StableLab team to draft the first version of the 1inch DAO Constitution, aimed at supporting the DAO’s transition towards decentralization. The proposed constitution will define the responsibilities of 1inch Labs and 1inch DAO, implement accountability mechanisms, and provide a consistent framework for managing the DAO. The grant, totaling $26,000 USDC, will cover various tasks including preliminary research, drafting, community engagement, and editing, with payment to be made upon submission of the deliverables.

ApeCoin: Understanding and Improving the Governance Participation: This proposal by DeepDAO aims to enhance governance participation in ApeCoin DAO through data analysis and segmentation. By understanding the interests and activity patterns of APE token holders, the proposal seeks to develop targeted onboarding incentives and initiatives, optimize governance processes, and cultivate a more engaged community. The proposal requests $15,000 in funding portioned out after two milestones over the course of six weeks.

Angle discusses roadmap to onchain governance: The forum post proposes a switch to a fully on-chain governance mechanism for Angle Protocol to enhance resilience and decentralization. The proposed architecture includes using GovernorBravo for the decision module and LayerZero with a timelock and multisig veto power for the execution module. The post discusses the parameters, smart contracts, front-end interface, transition phase, and potential future iterations of the proposed governance system. Feedback and remarks on the proposed architecture are welcomed.

Euler provides an update on the development of V2: The forum post introduces the Euler Labs’ development updates and seeks feedback from the DAO community in preparation for the launch of Euler v2. It highlights the Credit Vault Protocol (CVP) as the first protocol to support Euler’s mission of creating a high-performance environment for decentralized finance. The CVP is described as a permissionless smart contract that allows users to create and deploy their own flexible Credit Vaults, providing a foundation for building various sub-protocols. The post also mentions three sub-protocols that will be developed on top of the CVP: Euler v2, Isomorph, and Levr. The report emphasizes the benefits and features of the CVP, such as batching operations, simulations, sub-accounts, and the ability to work with various asset classes. The timeline for launch is not specified, but the code for the CVP is undergoing an internal audit, and public review and further auditing are expected before deployment. Feedback and potential partnerships are welcomed.

Aura Finance contemplates hiring Chainalysis: A forum post proposes adopting Chainalysis’ Proactive Incident Response (Proactive CIR) to protect Aura from potential hacks or exploits. The proposal highlights the increasing threat of cryptocurrency theft from DeFi platforms and positions Chainalysis’ solution as a leading asset recovery tool. The proposed Proactive CIR, costing up to $30,000 for 12 months of coverage, would provide Aura with a rapid-response retainer service, offering benefits such as deterring hacks, reducing response time, guaranteeing support, and providing technical skills and a vast network for asset recovery.

Safe weighs token value alignment program: This forum post proposes a Value Alignment Program (VAP) for Safe’s ecosystem projects to pledge a portion of their tokens, equity, or revenue in exchange for Safe tokens, credibility, and ecosystem support. The VAP aims to capture value from ecosystem projects while providing mutual alignment, contribution, and social provenance. The proposal outlines the purpose, terms, selection process, risks, alternative solutions, technical implementation, and open questions related to the VAP.

SafeDAO reveals the first draft of a new governance framework: The forum post presents the new Governance Framework — a proposed structure to manage the SAFE ecosystem. The author outlines the framework’s key components, including a multi-tiered governance model, a community treasury, and a system for proposal submission and voting. Discussion revolves around clarifying the framework’s details, with community members expressing support and raising questions about its implementation and potential impact on the SAFE ecosystem.

Index Coop Aims to Improve Limitations of Protocol, On-Chain Structured Products: The infrastructure limitations of this sector include a lack of cross-chain asset support, expense in maintaining products due to high issuance costs and difficulty rebalancing on-chain products due to slippage.

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