DAOs: Juno Chain proposal to confiscate funds passed, Aave V3 launched, Uniswap & Curve communities considering deployment on Celo, BadgerDAO’s BIP 87 moved to snapshot for voting, Synthetix’s SIP-207 approved, Idle’s IIP-19 succeeded, and more!
Biweekly report on decentralized autonomous organizations vol.21, 5th March — 19th March
TL;DR
- Aave V3 is live across 6 different networks
- Cosmos based Juno Network voted on a historic proposal to confiscate funds from an address, mirroring the response to Ethereum’s DAO hack
- Compound proposal 090 is live, proposals 091, 089 & 086 failed, 089 passed
- BadgerDAO’s BIP 87: bveCVX Restructure has reached quorum and has been moved to snapshot for voting
- The Uniswap community considering deployment Uniswap V3 on Celo
- GnosisDAO GIP-24 & 28 are live on snapshot, GIP-30 is live on the forum. Gnosis chain and GnosisDAO to explore ways to enhance giving-based applications, socially-minded DAOs
- Nexus Mutual joins 30+ DAOs adopting Bancor’s DAO treasury management solution
- The Curve community votes on the proposal to launch Curve on Celo
- Balancer marketing subDAO shared their outlook. Messari will publish financial data on the Balancer protocol
- The Idle community voted on IIP-19: Refund treasury (IDLE) and update IdleController
- Gitcoin Grants round 13 live till March 24
- Lido’s proposal to create a Committee for hiring approved
- Index Coop votes on IIP-141: Launch the interest compounding ETH index, and IIP-139: Season 1 budget approval
- mStable TDP 34 & TDP 35 passed
- PieDAO’s proposal to NFT Index Creation is live. [Epoch-5] approved
- Synthetix’s approved SIP-207 introduces the V3GM election module, which replaces the existing snapshot election process. Synthetix perpetual futures launched
- PoolTogether PTIP-62: Grants Committee funding (Q4) passed
- API3 integrates with Milkomeda. CRD Network is partnering with API3
- New MolochDAO grantee interview series
- Yearn has launched on Arbitrum, its first Ethereum L2. YIP-67 approved
- Coinlist to support Snapshot voting from their exchange accounts
- Ethereum Gas Limit (EGL) project closed over concerns about negative Ethereum governance impacts
- Polygon recovers from unscheduled downtime
- Convex Finance sees mass token unlock due to bug in rewards distribution mechanism
- Osmosis sees a significant share of empty (0 transaction) blocks due to lack of coordination between wallets and validators
- Arca and Polychain face criticism over Anchor proposal for deposit limits, with additional concern over suspicious trading activity by the proposer wallet
- New project (DAO,DAO) draws skepticism from the wider DAO community
- OnlyFans donated 500 ETH to DAO supporting Ukraine
- DAO creation platform Upstream raises 12.5M and launches publicly
- EmpireDAO is building a WeWork for Web 3
- AssangeDAO raised 56M and quickly split up
- Active proposals: Aave, Badger DAO, Compound, Curve, GitcoinDAO, GnosisDAO, Idle, LidoDAO, Index Coop, MakerDAO, PieDAO, Uniswap
- New & ongoing discussions: Balancer, Synthetix, mStable, Yam Finance, Yearn Finance, Nexus Mutual, BancorDAO, Akropolis, PoolTogether, API3, KyberDAO, Kleros
- 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
Top DAOs
Like two weeks ago, the rating is headed by Uniswap and BitDAO.
Global stats
Leading DAOs
Frameworks
Aragon
Recent blog posts
- 10 Industries Being Disrupted by DAOs: Are DAOs the next Industrial Revolution?
- Aragon @ ETHDenver: Snow sporks…
- Incentivized Governance or Institutional Bribery in Web3? Curve.fi enabled governance token markets and incentivized governance, aka bribery. Bribe Protocol seeks to extend it to other DeFi protocols.
The Commons Stack
Commons Stack Review: Sprint 34:
Trusted Seed Spotlight: Michel Bauwens, P2P Foundation:
Tribute Labs (OpenLaw)
Governance
Aave
Active proposals
Closed proposals
On-chain votes:
New and ongoing discussions
- Add EURS on Aave v3
- Market Risk Monthly (February 2022): Updates and Review
- Proposal: Add support for rETH Token
- ARC: Add support for CVX (Convex Finance Token)
- ARC: Migrate ABPT Safety Module to Balancer v2
- Early Contributors Program Launches: Sacred’s DeFi-Integrated Mixer
Latest governance topics on governance forum.
Akropolis
Recent blog posts
There were no active proposals these weeks.
Latest governance topics on governance forum.
API3 DAO
Recent blog posts
- Why Web3? What is it good for?
- CRD Network will deploy API3’s Airnode to provide Proof-of-Asset functionality to smart contracts
- Announcing the Partnership and Integration with Milkomeda
API3 DAO Tracker: API3 DAO currently involves 4,957 members participated in 26 votings.
New and ongoing discussions
- [SC] API3 Events — Remainder of 2022
- Announcing the Partnership and Integration with Milkomeda
- CRD Network will deploy API3’s Airnode to provide Proof-of-Asset
Latest governance topics on governance forum.
API3 Alliance Spotlight — Weather Source:
Telos Tuesday | API3 & KeyFi:
Badger DAO
Active proposals
New and ongoing discussions: Badger Discord
To read more about the different proposals and take part in the decision, check out the governance forum.
How to Become a Web 3 Developer Fast (PLUS: Badger’s Gitcoin Bounties are LIVE):
Balancer
Recent blog posts and news
Closed proposals
- Refund wstETH Liquidity Providers [not passed — did not meet Quorum][82k BAL for vs. 290 BAL against]
- Commission Quarterly Financial Reports through the Messari Hub [passed][80k BAL for vs. 34k BAL against]
New and ongoing discussions
- Hexagon Friendly Fork Proposal
- [Proposal] Delegate Treasury subDAO the Power to Invest Protocol Fees
- [Proposal] Commission quarterly financial reports through the Messari Hub
- [Proposal] BalancerDAO Compensation Evolution
- [Proposal] Activation of the protocol fee to grow the Balancer DAO
Latest governance topics on governance forum.
What is Balancer? Silver:
Bancor
Recent blog posts and news
- Nexus Mutual Joins 30+ DAOs Adopting Bancor’s DAO Treasury Management Solution
- Why “Healthy Liquidity” Is Important for DAO Treasury Management
Closed proposals
- Proposal to increase the trading liquidity limit in the PHTR pool from 400,000 BNT to 800,000 BNT
- Proposal to Whitelist Signata (SATA) with 50,000 BNT trading liquidity limit
- Proposal to Whitelist Smart MFG (MFG) with 50,000 BNT trading liquidity limit
- Proposal to increase trading liquidity limit in the FODL pool from 100k BNT to 250k BNT
- Increase TEMP trading liquidity to 500k BNT from 100k BNT
- Whitelist Silo Finance (SILO) with 50,000 BNT trading liquidity limit
New and ongoing discussions
- Proposal to Whitelist Signata (SATA) with 50,000 BNT trading liquidity limit
- Proposal to increase trading liquidity limit in the FODL pool from 100k BNT to 250k BNT
- BIP15: Proposing Bancor 3
- Proposal to Whitelist Smart MFG (MFG) with 50,000 BNT trading liquidity limit
To read more about the different proposals and take part in the decision, check out the forum.
Bancor Community Call — — March 6, 2022:
Proposing Bancor3: A Quick ELI5:
Compound
Active proposals
Closed proposals
- 091 PROPOSAL: Should Compound governance contribute funding to the Nomic Foundation [canceled]
- 089 Lower Proposal Threshold to 25K COMP [queued]
- 088 Lower Proposal Threshold to 10K COMP [canceled]
- 087 Oracle Update
- 086 Add Market: MATIC & Update Price Oracle
New and ongoing discussions
- COMP Reward Adjustments v2
- OpenZeppelin Security Updates for February 2022
- PROPOSAL: Should Compound governance contribute funding to the Nomic Foundation?
- Lower Proposal Thresholds v2
- Multi-chain strategy
Latest governance topics on governance forum.
Curve
Active snapshot proposals
New and ongoing discussions
- Proposal to add TUSD/am3CRV to the Gauge Controller
- Proposal to Launch Curve on Celo
- Proposal to add SILO/FRAX to the Gauge Controller
- The Curve Emergency DAO has killed the USDM gauge
To read more about the different proposals and take part in the decision, check out the forum. Vote here.
Gitcoin
Active proposals
Closed proposals
New and ongoing discussions
- Proposed Revision to Grant Eligibility Criteria
- [Proposal] The Gitcoin Foundation — A proposal to represent the Gitcoin DAO IRL by a Cayman Islands Foundation
- Quadratic Funding x Effective Altruism
- Our Flagship Product is GitcoinDAO
- A DAO has no CEO
- [Discussion] A hypothesis: Thin workstreams lead to better outcomes
To read more about the different proposals and take part in the decision, check out the governance forum.
Gitcoin Grants Round 13 Kick-Off Event:
Building Yield Farming Strategies with BadgerDAO:
Gnosis
Active proposals
- GIP-28: Allow locked and staked GNO to vote
- GIP-24: 1st phase 50K GNO Incentives Program for Gnosis Chain as proposed in GIP-16
New and ongoing discussions
- GIP-30: Should GnosisDAO reward 2300 GNO to Prysmatic Labs?
- GIP-28: Allow GNO holders to vote even if their GNO are invested/staked/locked in Smart Contracts in different protocols/networks
- Should Gnosis DAO fund a bounty for Gnosis Safe support for Kali DAO client?
- GIP-24: 1st phase 50K GNO Incentives Program for Gnosis Chain as proposed in GIP-16
Find out the latest GnosisDAO proposals here.
Idle
Active proposals
Closed proposals
- [Temperature Check] Uni v3 — Liquidity Concentration and 50k IDLE Deployment
- [Temperature Check] Bancor Follow-up Liquidity Deployment (187k IDLE)
New and ongoing discussions
- IIP-19: Bancor Follow-up Liquidity Deployment and $IDLE Gauges setup
- Uniswap v3 — Liquidity Concentration and 50k IDLE Deployment
- Bancor Follow-up Liquidity Deployment (187k IDLE)
- Leagues budget M1–2022 extension
To read more about the different proposals and take part in the decision, check out the governance forum.
Index Coop
Active proposals
- IIP-142: Transfer USDC from Treasury to the Investment Account
- IIP-141: DG — Launch the Interest Compounding ETH index ($icETH)
- IIP-139 — Season 1 Budget Approval
- [Compound-91] Should Compound governance contribute funding to the Nomic Fo
- [Compound-90] Risk Parameter Updates for ZRX, MKR, and SUSHI
Closed proposals
- [IIP-138: MVI Revised Fee Split and Streaming Fee Increase
- IIP-136: DG — Launch the FIXED Suite
- IIP-135: DG — Launch the Alt Layer 1 Index (LAYER1)
- YIP-67: Contribute $400,000 to Nomic Foundation
- [Balancer] — Refund wstETH Liquidity Providers
- [AAVE-undefined] Add Terra USD (UST) to AAVE v2
- UNISWAP-1.11] Should Uniswap Provide Voltz with v3 Additional Use Grant?
New and ongoing discussions
- Governance Nest: After Action Report (AAR) Process
- IIP-137: DG — Launch the Play-to-Earn Index (P2E)
- IIP-## Launch the Basis Trading product suite (BASIS-ETH et al)
- IIP-142: Transfer USDC from Treasury to the Investment Account
- Awareness: Quorum Calculation Update
- IIP-141: DG — Launch the Interest Compounding ETH index ($icETH)
Find latest Index Coop proposals here.
To read more about the different proposals and take part in the decision, check out the governance forum.
Kleros
Recent blog posts
There were no active KIPs these weeks.
To read more about the different proposals and take part in the decision, check out the governance forum.
KyberDAO
Recent blog posts
- Avalanche Rush Phase 2 Starts NOW on KyberSwap with $1M In Liquidity Mining Rewards!
- KyberSwap Partners with BENQI to Provide the Best Liquidity and Rates on Avalanche
- KyberSwap New Feature: TrueSight — Discover Trends and Make Your Trading Journey Easier
- KyberSwap powers leading token trading analytics platform DEXTools swap function
- KyberSwap DEX Aggregator Launches Integration with L2 Scaling Solution Arbitrum Network
There were no active proposals these weeks.
Find out all proposals here. Check them out on GitHub.
Lido
Active proposals
- Top Up LEGO Treasury Wallet with 300,000 LDO
- Proposal to form Lido Referral Program committee [Ethereum]
- Vote to engage a Head of Marketing & Community for Lido
Closed proposals
- Create a Committee for Hiring
- Adjust Referral Program for lending/borrowing
- Proposal: Commission research through the Messari Hub
New and ongoing discussions
- Candidate Proposal for Head of Marketing & Community Role
- [reWARDS] March 22’ Budget
- Referral Program rules adjustment
- Proposal to form Resourcing and Compensation Committee (RCC)
- Referral Program Whitelisting [Ethereum]
To read more about the different proposals and take part in the decision, check out the governance forum.
MakerDAO
Active Polls (9 Polls Ending Mar 28)
- Ratification Poll for Declaration of Intent — Invest in Short-Term Bonds (MIP13c3-SP12)
- Ratification Poll for Facilitators Offboarding (MDS-001) (MIP41c5-SP5)
- Ratification Poll for GovAlpha Budget 2022–23 (MIP40c3-SP59)
- Ratification Poll for Modify Core Unit Budget — Real-World Finance (RWF-001) (MIP40c3-SP61)
- Ratification Poll for Modify GovAlpha Core Unit MKR Budget (MIP40c3-SP60)
- Ratification Poll for Onboard-Amend Keeper Network — Gelato Network (MIP63c4-SP3)
- Ratification Poll for Onboard-Amend Keeper Network — Keep3r Network (MIP63c4-SP2)
- Ratification Poll for Rapid Payment for Small Bug Bounties (MIP64, MIP40c3-SP42 Amendment) (MIP4c2-SP17)
- Ratification Poll for Recognized Delegate Compensation (MIP61)
Closed Polls (1 Poll Ended Mar 07)
Executive
- Curve stETH-ETH Onboarding, Rate Limited Flapper, Immunefi Bug Bounty Payouts [executed Mar 14]
- Mitigate Post-Shutdown Flash Loan Vulnerability [executed Mar 11]
New and ongoing discussions
- MIP40c3-SP61: Modify Core Unit Budget — Real-World Finance (RWF-001)
- MIP6c3-SP2: Modify the collateral application form
- MIP41c5-SP5: Facilitator Offboarding
- MIP69: Nice — RFC
- MIP40c3-SP46: Adding Strategic Finance Core Unit Budget (SF-001)
- stkMKR: Maker Staking and Tokenomics Revision
- [Signal Request] Fund Ambassadors Program Pilot
and many more!
Read more about the different proposals and take part in the decision.
Governance Portal, Governance Forum
Quarterly Strategy Review — Q4 2021:
mStable
Recent blog posts
Closed proposals
New and ongoing discussions
- [Discussion] Consolidating the GrantsDAO with the Community subDAO
- TDP 35: Q1 Signer Rotation & Offboarding Clause
- TDP 36: DTOP Liquidation
- MCCP 18: Add Idle Finance dial for 3pool PYT
- [RFC] Pre-approve BPT Locking & Voting for upcoming veBAL Tokenomics on Balancer
- [RFC] Uniswap v3 Liquidity — Take 2
To read more about the different proposals and take part in the decision, check out the governance forum.
Road to v2 Community Call Kickoff — mStable:
Nexus Mutual
Recent blog topics
Closed proposals
Discussions
- Immunefi Matching Bug Bounty Program Review | Request for Comment (RFC)
- Exploring Nexus Tokenomics/Bonding Curve Redesign
Vote on governance proposals to decide the future of the protocol here.
To read more about the different proposals and take part in the decision, check out the governance forum.
Mutant Meetup Call | 8 March 2022:
Pie DAO
Recent blog posts
Active proposals
Closed proposals
New and ongoing discussions
- NFT Index Creation (Updated PFP Index proposal)
- PIP 6 — SDR++ Special Drawing Right
- [Epoch-5] MerkleTree Notarization
- Proposal for partnership with Tokemak
To read more about the different proposals and take part in the decision, check out the governance forum.
PoolTogether
Recent blog posts
- Philadelphia Eagles, Treasury Working Group, and Pool Together: PoolTogether Community Interview #22: TheRealTuna
- Stormwater Hydrology, Yolo’ing ETH, and PoolTogether: PoolTogether Community Interview #21: DaBoom
- PoolTogether Community Podcast #12: Richard
- PoolTogether Community Podcast #11: Brendan
Closed proposals
New and ongoing discussions
- PTIP-64: single-sided POOL staking with IL protection on Bancor
- PTIP-63: Rapidly Grow Our User Base Through Strategic Partnership
- PTIP-62: Grants Committee Funding (Q4)
- (RFC) Treasury Working Group | Second Quarter Renewal
To read more about the different proposals and take part in the decision, check out the governance forum.
Synthetix
Recent blog topics and news
- The Diphda Release — Perpetual Futures and Debt Pool Synthesis
- Launching Perpetual Futures
- Upcoming Debt Pool Synthesis
Closed proposals
- SIP-207: V3GM Election Module
- SIP-210: Create Dai Wrapper and Adjust Wrapper Parameters
- SCCP-169: Update Parameters of Dynamic fees
- SIP-212: Add commodity synths on Optimism
- SIP-148: Upgrade Liquidation Mechanism V2
To read more about the different proposals and take part in the decision, check out the governance forum.
Uniswap
Active proposals
- Governance Proposal — Should Uniswap governance contribute funding to the Nomic Foundation?
- [Consensus Check] Should we deploy Uniswap V3 on Celo?
Closed proposals
- Should Uniswap Provide Voltz with v3 Additional Use Grant?
- Should Uniswap governance contribute funding to the Nomic Foundation?
- Should we deploy Uniswap V3 on Celo?
New and ongoing discussions
- Consensus Check — Uniswap x Celo: Green Pool for Treasury Proposal
- [Temperature Check] Uniswap x Celo: Green Pool for Treasury Proposal
- Consensus Check — Should Uniswap incentivize Liquidity on Optimism
- Creating an New Capital Market Structure
- UNI should become an oracle token
To read more about the different proposals and take part in the decision, check out the governance forum.
Yam Finance
There were no active proposals these weeks.
Check out the latest YIPs discussions here.
Yearn Finance
Closed proposals
Check out the latest YIPs discussions here.
MISC
Juno Chain Votes on Historic Proposal to Confiscate Funds
After the initial airdrop distribution was gamed by a single party to evade per address limits, the Juno community is considering removing most of their funds retroactively.
The Cosmos SDK based Juno Network is currently voting on a historic and high stakes proposal that could have lasting impact on their chain and community. We dig into the details of what could amount to Cosmos’ “The DAO” incident below.
First, some background. Cosmos chains offer programmability and enable complex coordination mechanisms similar to Ethereum. Juno Network in particular leads the way here, being the first chain to enable CosmWasm smart contracts which can be used to implement anything from tokens to decentralized exchanges to DAOs. We’ve already seen a growing wave of Juno based DAOs, primarily launched on the upstart DAODAO platform (not to be confused with the recently launched “DAO, DAO” fundraising scheme launching on the controversial DeSo blockchain). But unlike Ethereum and most other smart contract chains to date, Cosmos SDK chains are themselves a DAO of sorts. On-chain governance gives token stakers wide ranging powers over the platform, including the ability to alter arbitrary balances or make other extra-protocol changes. Where Ethereum needed to coordinate via rough consensus and off chain governance to rectify the DAO hack incident, in Juno’s case this could be solved through a routine governance proposal.
This is exactly what we’re seeing now, with Proposal 16 attempting to remove funds from a large holder who seems to have sybil attacked the initial JUNO airdrop. While Juno’s airdrop included a 50,000 ATOM maximum cap to help improve network decentralization, shortly after genesis the offending user consolidated proceeds from 52 wallets into a single account — indicating a single entity had split funds among many different wallets. This now presents serious risks to the project, with the 3 million JUNO tokens (worth $120 million at time of writing) able to drain existing liquidity pools and also over 50% of the voting power required to meet quorum for governance proposals. Crypto pseudonymity makes attribution difficult, but on-chain records seem to indicate a connection with an old Cosmos based MLM scheme (which could help explain the high number of wallets involved), as well as relations with a particular validator.At present, the vote seems to be falling in favor of confiscating the majority of funds and sending them back to the community pool, reducing the wallets balance back to the intended limit. But not everyone is happy with this outcome, as it contradicts widely held views that transactions and balances should be largely self sovereign and immutable. It also remains possible (although unlikely) that this was not a sybil attack but represents pooled balances from multiple users or even OTC trading activity.
This also brings up interesting questions about “double jeopardy”, as a similar proposal for confiscation was rejected shortly after the chain’s genesis (proposal 4). Nothing in Cosmos code can prevent resubmitted proposals, funds confiscation, or other controversial governance measures. This indicates social consensus on ground rules and legitimate scope of chain governance — among both token holders and validators — will play an important role in the Cosmos ecosystem going forward.
And the likely outcome of removing funds also opens the way to potential fork based governance. The Juno whale owner and other disaffected parties can respond by launching a new chain that restores the revoked balances from the Juno chain, while also potentially burning balances of those voting for funds removal. This creates interesting dynamics where the dominant strategy for voters is abstention or voting against, unless there is a strong and pressing need to move forward with the action on the original chain; this could serve as a critical counterweight to governance overreach on Cosmos chains.
This episode could also force future projects away from the popular Cosmos ecosystem trend of “fairdrops” that are partially weighted per wallet, rather than strictly linear based on proof of capital. And even the concept of airdrops may face challenges, as they provide limited utility for the underlying network. Voting passed on March 15.
- Coinlist to support Snapshot voting from their exchange accounts:
- Ethereum Gas Limit (EGL) project closed over concerns about negative Ethereum governance impacts:
- Polygon recovers from unscheduled downtime:
- Convex Finance sees mass token unlock due to bug in rewards distribution mechanism:
- Osmosis sees a significant share of empty (0 transaction) blocks due to lack of coordination between wallets and validators:
- Arca and Polychain face criticism over Anchor proposal for deposit limits (which could be circumvented by splitting wallets), with additional concern over suspicious trading activity by the proposer wallet:
- New project (DAO,DAO) draws skepticism from the wider DAO community:
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