DAOs: Wyoming’s trailblazing law paves the way for DAO recognition, Snapshot introduces rewards for participation, Optimism refines public goods funding, Gnosis transitions to Gnosis 3.0, Wormhole moves towards decentralization, and more!

Paradigm

Published in

Paradigm

14 min readMar 15, 2024

Biweekly report on decentralized autonomous organizations vol.46, 4th March — 15th March

TL;DR

Wyoming’s bill outlines the Wyoming Decentralized Unincorporated Nonprofit Association Act (DUNA), which provides for decentralized unincorporated nonprofit associations’ formation, management, and governance
Snapshot introduces rewards for participation
Wormhole transitions towards a decentralized governance structure through its native token, W
Optimism sharpens focus by refining public goods funding
Uniswap V3 fees: Factory owner amendment proposal has been rejected
Gauntlet is leaving Aave
Gitcoin Aave Grants DAO partnership proposal successfully passed. The community discusses nominations for GG20 Community Council
The new version of the Endgame plan has been released on the Maker Forum
Lido LIP-21 aims to implement Simple On-chain Delegation
Gnosis is transitioning to Gnosis 3.0, a collective of aligned projects centralized around the GNO token. GIP-92 & GIP-93 are on the forum
Compound’s proposals 220 & 223 passed, 221 & 222 failed
Sushi’s Immediately Restore Sushi DAO’s Governance Forum proposal
Arbitrum’s Request for Continuation of the Arbitrum DDA Program
BanklessHQ’s Token Return Saga: Burn or Return proposal
Purple’s Migrating Purple to Base proposal
Forefront Core Team proposes dissolving the Forefront DAO and returning funds to 2021 Treasury Diversification Round participants
ApeCoin eyes fairer play in DAO voting arena
Rocket Pool’s Eigenlayer puzzle: Two votes aim to decide the fate of BA082401 proposal
Safe’s Token Utility proposal aims to enhance the utility of the SAFE token through community-inspired strategies
Nouns’s Back the Next Generation of On-chain Art proposal aims to foster the next generation of on-chain artists
Podcasts on DAOs
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

The rating is headed by Arbitrum and Optimism.

Read & Listen

Read on DAOs

The DUNA: An Oasis for DAOs, by Jennings and Kerr
Exploring Mycofi: Mycelial Design Patterns for Web3 and Beyond, by Emmett and Zartler
Governance Decides Where Ethereum Transacts: The L2 Governance Race, from Tally
Arbitrum DAO Proposal for Million-Dollar Donation to Tornado Cash Devs to Be Reworked Over Legal Concerns, from The Block
Maker 2023 DAO Retrospective, from Steakhouse Financial
Polkadot OpenGov Deep Dive, by Elem Oghenekaro
Launch Season is upon us, from Rune Christensen
What the Futarchy, by Boffin
On Today’s Episode of As the Crypto World Turns: Statement on ShapeShift AG, by Hester Peirce and Mark Uyeda
The Path to Open MetaGovernance, from the Optimism Foundation
The Gitcoin Whitepaper
Bitpacs: Emulating DAOs on Bitcoin, by Dillon Healy
A few reflections on ETHDenver from Spencer Graham

Listen

Karpatkey: The Bank for Defi w/ Marcelo Ruiz de Olano, on StablePod
Cross-Chain DAOs, by Rafael Solari
Dencun 101: Tim Beiko Explains Ethereum’s Upgrade and Beyond, on Bankless
Inside MakerDAO’s DSR Hike: Balancing Demand and Revenue in a Bull Market, on 0xResearch
Money, Power, Politics, and the Internet’s Next Battleground, on web3 with a16z
Chris Giancarlo, Former CFTC Chair, on the SEC’s Approach to Crypto, on Law of Code
Videos from ETHDenver 2024
Public Goods Funding: The New Meta, by Kevin Owocki

Governance

Aave

Active proposals

Closed proposals

Discussions

Latest governance topics on governance forum.

Compound

Closed proposals

Discussions

Latest governance topics on governance forum.

Gitcoin

DAO Digest #26 2024

Shoutout to @gaoa97 @rohit @quaylawn for coordinating this Digest! 🔥 Hot Topics 🆕 Gitcoin is Entering the End Game…

gov.gitcoin.co

Closed Proposals

Discussions

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

Gnosis

Gnosis Aspires to Become a Key Player in Payments: Gnosis is transitioning to Gnosis 3.0, a collective of aligned projects centralized around the GNO token. This evolution aims to make decentralized financial tools universally accessible, moving from foundational infrastructure development to practical applications for widespread use. Gnosis 3.0 includes ventures like Gnosis Pay and Gnosis Wallet to facilitate this transition, emphasizing the integration of blockchain technology into everyday financial activities.

There were no active Proposals these weeks.

Discussions

Find out the latest GnosisDAO proposals here.

Lido

Recent blog posts

Lido Monthly Report: February 2024

Active proposals

Discussions

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

MakerDAO

Ended Polls

3 Polls — ended Feb 29

Executive

Out-of-Schedule Executive Vote — Increase EDSR, Increase Stability Fees, Decrease GSM Delay, USDC PSM Throughput Change, Trigger Spark Proxy Spell — March 8, 2024 [executed]

Discussions

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

Uniswap

Recent blog posts and news

Uniswap Mulls DAO’s Reign Over Fees: Following the successful temp-check to “Activate Uniswap Protocol Governance,” Michigan Blockchain, 404 DAO, and GFX Labs seek to amend the Uniswap V3 Factory owner arrangement to grant the DAO authority to modify the fee mechanism in the future. This change aims to foster innovation and adaptability within the DAO by avoiding the limitations of a single, immutable fee structure. A Snapshot poll is being conducted to gauge delegate support for the amendment, with outcomes influencing the incorporation of this change in the forthcoming onchain proposal by the Foundation. Debate on the forum has been vigorous, and the poll is heavily contested.

Closed proposals

Discussions

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

Upcoming Events

Apr 3–5: NFT NYC
Apr 4–9: Hong Kong Web3 Festival
Apr 8–12: Paris Blockchain Week
Apr 15–16: Blockchain Life 2024, Dubai
Apr 20–21: Arts DAO Fest 2.0, Dubai
Apr 20–21: Blockchain Universe Summit, Dubai
May 15–16: Conf3rence, Dortmund
May 27–30: BlockSplit, Split, Croatia
May 29–31: Consensus, Austin

MISC

Wyoming’s Trailblazing Law is Paving the Way for DAO Recognition: The bill outlines the Wyoming Decentralized Unincorporated Nonprofit Association Act (DUNA), which provides for decentralized unincorporated nonprofit associations’ formation, management, and governance. It defines key terms related to decentralized nonprofit associations, including their formation criteria, administrative structures, and the use of digital assets and distributed ledger technology. The act specifies legal provisions regarding the associations’ operations, including property management, member rights and obligations, and procedural details for mergers, conversions, and dissolution, effective July 1, 2024.
Wormhole’s Leap Towards Decentralization: Wormhole, a leading interoperability platform connecting over 30 blockchains, recently detailed its approach to an upcoming airdrop focused on rewarding genuine onchain users and community members. They used advanced anti-Sybil techniques and comprehensive onchain data analysis to identify deserving recipients, ensuring the airdrop favored active and legitimate participants. With the airdrop, Wormhole will be transitioning towards a decentralized governance structure through its native token, W. This move aims to empower token holders to influence the protocol’s direction through onchain governance, covering vital operational decisions such as adding blockchain connections and adjusting smart contracts.
Optimism Sharpens Focus by Refining Public Goods Funding: A forum post discusses transitioning Retroactive Public Goods Funding to narrower, more focused rounds based on the realization that broad scopes overwhelmed participants. The post underscores the clarity and targeted impact gained through narrowing the scope. The Collective aims to experiment with narrow-scoped rounds to improve builder guidance, measure effectiveness, and prioritize types of effects. It acknowledges the difficulty of prioritization but aims for long-term benefits in rewarding contributions to the Optimism Collective.
Arbitrum: Request for Continuation of the Arbitrum DDA Program: The proposal suggests renewing the Arbitrum Grants Program via the Delegated Domain Allocation model with a $4 million budget over two quarters, distributed equally across four domains: New Protocol Ideas, Gaming, Dev Tooling, and Education, Growth, Community, and Events. This initiative managed through Questbook, aims to support projects aligned with Arbitrum’s roadmap, responding to community and builder feedback for increased funding and structured oversight. The proposal also outlines an increased grant cap, detailed evaluation processes, and financial management plans to ensure accountability and the program’s effectiveness.
Forefront: Dissolving the Forefront DAO: The Forefront Core Team proposes dissolving the Forefront DAO and returning funds to 2021 Treasury Diversification Round participants due to the loss of momentum and lack of a clear profitability path in the bear market. The distribution of funds will be proportional to each participant’s involvement in the round, with the process planned for completion by the end of March. Additionally, $FF tokens, viewed as governance rather than investment vehicles, will not be reimbursed to holders outside the TDR, and the remaining $FF in the treasury will be burned.
Purple: Migrating Purple to Base: The proposal involves migrating BuilderDAO’s contracts from Ethereum Mainnet to a Layer 2 solution (Base) to reduce transaction costs and enhance member engagement. The process includes pausing auctions to update governance settings, migrating the DAO, resuming auctions with new settings, and bridging a portion of the treasury to Base. This move, necessitated by high mainnet costs, aims to lower transaction fees, increase interactions, and align with the Farcaster ecosystem with notable changes, including a shortened vote period and the introduction of protocol fees. Voting ended on March 13th with 100% voting “for.”
Sushi: Immediately Restore Sushi DAO’s Governance Forum: The proposal aims to immediately restore the Sushi DAO governance forum after its removal by the operations team, an unprecedented action that erased all governance discussions since Sushi’s inception. This move claimed to be for migration purposes, has raised concerns over technical competency and governance disregard. Amidst efforts to enhance governance transparency and accountability within Sushi DAO, the deletion and suspension activities surrounding the forum have sparked suspicions, highlighting perceived negligence in maintaining a vital communication channel. Voting ended on March 12 with 100% voting “yay.”
ApeCoin DAO Eyes Fairer Play in DAO Voting Arena: A post in the ApeCoin forum outlines a concern within the DAO: Some community members feel underrepresented and believe that their contributions and votes are overshadowed by larger entities, leading to a lack of influence in decision-making processes. The proposed solution involves the APE Foundation delegating 6.3 million APE to a community wallet to rebalance voting power and ensure a more equitable representation of community voices without penalizing or disincentivizing large stakeholders. Implementing this solution would involve collaboration among various roles within the DAO. It would use historical data to set inclusive qualifying criteria to restore a sense of ownership and reward to the community. There have been many follow-up posts (93 and counting), and the discussion appears productive.
Rocket Pool Eigenlayer Puzzle: To Fund or Not?: Two connected votes aim to decide the fate of BA082401, a proposal for allocating USD 60,000 from the Grants & Bounties Management Committee (GMC) for research and potential development of an Eigenlayer integration for Rocket Pool nodes. The first vote determines if the funding for BA082401 should be rejected outright, while the second vote decides whether to reduce the project’s scope and budget. Outcomes range from not funding BA082401, limiting funding to $10k for initial research, or fully funding the project as initially approved, depending on the combination of results from both votes. These decisions are crucial in balancing the attraction of node operators with the potential risks to rETH holders, highlighting the importance of pDAO’s involvement in determining the project’s direction.
BanklessHQ Token Return Saga: Community First: BanklessHQ, Ryan Sean Adams, and David Hoffman have fulfilled the commitment made in the “Burn or Return” proposal by returning the entirety of BANK tokens initially granted to them under the Genesis proposal to the BanklessDAO treasury, excluding tokens that are still vesting and 80k BANK tokens each retained for their continued participation in BanklessDAO. The total amount returned to the DAO is 143,337,805 BANK, with additional tokens to be vested and decided upon by December 27th, 2024.
Snapshot Introduces Rewards For Governance Participation: Boost, a new feature currently in beta on Snapshot, aims to increase voter participation in DAOs by offering ERC-20 token rewards for engaging in governance proposals. It allows for enhancing specific proposals with rewards, using a smart contract to distribute tokens based on chosen distribution methods and eligibility criteria. Designed to combat voter apathy and promote active involvement, Boost is open for beta participation, with ongoing research collaboration to document its effectiveness in encouraging DAO engagement.
Sushi: Transparency for Treasury Funds and Operations: This proposal addresses concerns within the Sushi community regarding the operations team’s lack of transparency, particularly about the roadmap of Sushi 2.0. It calls for the immediate suspension of the compensation committee’s duties, full disclosure of salary and bonus packages, suspension of bonus payments and asset sales for funding unratified payments, and clarity on legal entities formed by the operations team. The vote presents two options: instructing the Sushi operations team to comply with these demands or maintaining the status quo without changes. Voting ended on March 7th with 100% voting “Yay.”
Safe: SAFE Token Utility: This proposal aims to enhance the utility of the SAFE token through community-inspired strategies, aligning with milestone E from SEP #3 and planning for future expansions in token utility. It discusses strategic goals for the SAFE token, emphasizing a vibrant ecosystem, decentralization, and tokenizing value while outlining potential areas for development such as account, network, username, and payment abstraction. Additionally, the proposal introduces the Safe Activity Program to incentivize active participation in the Safe ecosystem, with benefits for users. It highlights the importance of community involvement in further developing the SAFE token’s utility.
Nouns: Back the Next Generation of On-chain Art: This proposal aims to foster the next generation of on-chain artists by enhancing and rebranding the on-chain art deployer Efficax, focusing on CC0 licensing and intelligent contract innovation. It proposes the development of a new version of Efficax to include features like HTML and JS in SVG support, a Nouns-themed frontend, and a redesigned smart contract with CC0 attestation, aiming to make CC0 artwork on-chain composable and significantly reduce costs for artists. The project requests 10 ETH in funding, allocated across several development stages, to achieve these goals and promote wider accessibility and remix-ability of on-chain art while showcasing the Nouns brand to prominent figures in digital fine art.